US Stock Futures Rise As US Exports Surge
U.S. stock futures climbed Friday morning as the U.S. trade deficit for October unexpectedly narrowed as exports surged to their highest levels in more than two years and the trade gap with China fell.
Dow Jones Industrial Average futures rose 25 points to 11322 while S&P 500 futures added 4 points to 1232 and Nasdaq Composite futures advanced 6 points to 2206. Prior to the data, Dow futures had been up 30 points, S&P 500 futures were up 5 points and Nasdaq futures were up 8 points. Changes in stock futures do not always accurately predict early stock moves after the open.
The total U.S. deficit in international trade of goods and services fell more than 13% to $38.71 billion from an revised $44.60 billion the month before, the Commerce Department said Friday. The September trade gap was originally reported as $44.00 billion. Economists had predicted a $44.0 billion trade gap.
The U.S. trade deficit with China narrowed 8.3% to $25.52 billion as exports to the country surged 29.8% to a record high of $9.30 billion and imports fell slightly to $34.82 billion.
Separate data showed U.S. import prices posted a second strong gain in November, easing deflation concerns and suggesting a little inflationary pressure within an economy struggling to recover from a deep recession. The price of goods imported into the U.S. rose by 1.3% compared to the prior month, the Labor Department said Friday. Economists were expecting an 0.8% increase in November.
Earlier Friday morning, China's central bank said it will raise banks' reserve requirement ratio by 0.50 percentage points, the sixth such hike this year, as inflationary pressures strengthen. The announcement came as China's latest economic data showed its exports and imports both soared to record highs in November, while the country's trade surplus narrowed to $22.9 billion from October's $27.15 billion. The surplus was greater than economists' $22.3 billion median forecast.
The dollar slipped, with the U.S. Dollar Index, tracking the U.S. currency against a basket of six others, off 0.1%. Crude-oil futures rose while gold futures slipped.
Treasurys were mixed, with increased demand for the two-year note pushing its yield down to 0.61%, while a decline in the 10-year lifted its yield to 3.26%.
Among stocks in focus, Community Health Systems said Tenet Healthcare has rejected a takeover offer valued at $6 a share of cash and stock, or a roughly 40% premium to Thursday's closing price. Community Health Systems slipped 4.6% in premarket trading while Tenet surged 52%.
Beckman Coulter jumped 26% premarket after The Wall Street Journal reported that the company has put itself up for sale.
-By Donna Kardos Yesalavich, Dow Jones Newswires; 212-416-2188; donna.yesalavich@dowjones.com
Among the companies whose shares are expected to actively trade in Friday's session are Tenet Healthcare Corp. (THC), Green Mountain Coffee Roasters Inc. (GMCR) and Beckman Coulter Inc. (BEC).
Community Health Systems Inc. (CYH) made a $3.3 billion unsolicited offer for smaller rival Tenet Healthcare, in a deal that would create the country's largest hospital operator as measured by number of facilities. Tenet, which rejected the offer, surged 52% to $6.53 in premarket trading, above the $6 per share bid price, while Community's stock was down 4% at $30.51.
Green Mountain's fiscal fourth-quarter profit surged 92% as the specialty roaster reported K-cup shipments climbed sharply and revenue soared. Results for the latest quarter topped the company's expectations, but shares slumped 15% to $31.70 premarket as the profit outlook for the current quarter missed expectations and the company warned of volatility in coffee prices for the new year.
Beckman Coulter, which makes diagnostic instruments used in clinical testing, has put itself on the block and could fetch more than $5 billion in a sale, The Wall Street Journal reported, citing people familiar with the matter. Beckman rose 27% to $72.30 premarket.
National Semiconductor Corp.'s (NSM) fiscal second-quarter earnings jumped 78%, beating analysts' estimates, as sales jumped sharply and margins improved. But shares fell 5.8% to $14.10 premarket as the company forecast current-quarter revenue well below estimates.
Jackson Hewitt Tax Service Inc.'s (JTX) fiscal second-quarter loss narrowed slightly, topping analysts' estimates, as the company's costs declined. Shares rose 14% to $1.25 in recent premarket trading. Shares of the tax preparer surged 34% Thursday after saying it has secured full assisted-refund coverage for the 2011 tax season. With an assisted refund, customers don't have to pay for tax preparation up front. The tax preparation cost and other fees are deducted from the refund.
Aastrom Biosciences Inc. (ASTM) said Thursday it plans to offer an undisclosed number of common stock and warrants, with plans to use the proceeds to fund research and development and other capital expenditures. Shares of the biotechnology company slumped 17% to $2.54 premarket.
Standard & Poor's announced a number of changes to its indexes, including adding Cablevision Systems Corp. (CVC) and Netflix Inc. (NFLX) to its S&P 500 index, in moves that it says better reflect the market value of the companies. F5 Networks Inc. (FFIV) and Newfield Exploration Co. (NFX) were also added to the S&P 500 index, in changes that will take place after the close of trading on Dec. 17. Cablevision rose 5.5% to $35.20 premarket, as Netflix gained 4.2% to $199, F5 climbed 4.4% to $145.03 and Newfield moved up 3.9% to $72.80.
Borders Group Inc. (BGP) reported another dismal quarter, as it continues to be hurt by dropping sales and higher margins, and it faces a potential liquidity crunch next year while it considers a merger with larger rival Barnes & Noble Inc. (BKS), a move suggested recently by its second-largest shareholder. Shares dropped 12% to $1.20 premarket.
Pfizer Inc. (PFE) voluntarily withdrew its Thelin drug from markets where it's currently available and is halting global clinical studies as it said the pulmonary arterial hypertension treatment's adverse effects on the liver outweigh its benefits. Shares of the drug giant fell 0.5% to $16.68 premarket.
Fuel Systems Solutions Inc. (FSYS), a maker of alternative fuel components, said its planned sale of at least 2 million shares priced at a 5.2% discount to Thursday's close as the company seeks to pay down a credit line. Shares fell 4.1% to $30.33 premarket.
United Technologies Corp. (UTX) predicted sales in the coming year will be below analysts' expectations, though its earnings forecast was in line with views. Shares were slid 0.9% to $76.93 premarket.
Analogic Corp.'s (ALOG) fiscal first-quarter earnings soared from its very narrow profit a year earlier as the jump in the adjusted bottom line was better than analysts expected, though revenue fell short of views. The company unveiled a program to repurchase up to $30 million of its common stock, about 5% of its current market value. Shares of the maker of health- and security-imaging products were up 4.5% to $49.86 premarket.
Carrizo Oil & Gas Inc. (CRZO) announced plans to sell at least 3.5 million shares, with the oil-and-gas exploration company saying it plans to use proceeds from the offering to repay borrowings under its revolving credit facility. Shares slid 1% to $30 in premarket trading as the number of shares outstanding would rise by about 10%.
Pall Corp.'s (PLL) fiscal first-quarter earnings jumped 51%, beating analysts' expectations. The maker of filtration and purification products also raised its outlook for the year. Shares were up 4.6% to $50.25 premarket.
Harry Winston Diamond Corp. (HWD, HW.T) swung to a fiscal third-quarter profit--its second in a row after six in the red--as rough diamond volume and pricing grew, with rising demand seen across all markets. Shares fell 9.5% to $13 premarket.
Esterline Technologies Corp. (ESL) reported a surprise surge in profit to a record high in the company's fiscal fourth quarter as revenue climbed. Shares in the aerospace and defense manufacturer were up 5.4% at $68.05 in after-hours trading, which would represent its highest level ever, as the company projected earnings for the just-begun fiscal year ahead of estimates.
SeaChange International Inc. (SEAC) reported it swung to a fiscal third-quarter loss as results were stung by higher charges, while revenue and margins also fell. Results for the provider of software and hardware for video-on-demand television missed its downbeat expectations. Shares fell 5% to $7.95 in light after-hours trading.
Watch List
Canadian sporting-goods retailer Forzani Group Ltd.'s (FGL.T, FRZNF) third-quarter profit jumped a bigger-than-expected 20% on higher sales and margins as its restructuring efforts continue to bear fruit.
Energen Corp. (EGN) agreed to buy assets in the Permian Basin in Texas for $110 million from SandRidge Energy Inc. (SD), resulting in the energy holding company boosting its production and earnings forecast for 2011.
Standard & Poor's Ratings Services lowered General Maritime Corp. (GMR) by two notches to highly speculative territory and put the oil-tanker company on watch for further downgrades as liquidity evaporates.
Nara Bancorp (NARA) has reached an agreement to buy Center Financial Corp. (CLFC) in an all-stock deal worth $270 million, saying it will create the only Korean-American bank with a national footprint.
U.S. stock futures climbed Friday morning as the U.S. trade deficit for October unexpectedly narrowed as exports surged to their highest levels in more than two years and the trade gap with China fell.
Dow Jones Industrial Average futures rose 25 points to 11322 while S&P 500 futures added 4 points to 1232 and Nasdaq Composite futures advanced 6 points to 2206. Prior to the data, Dow futures had been up 30 points, S&P 500 futures were up 5 points and Nasdaq futures were up 8 points. Changes in stock futures do not always accurately predict early stock moves after the open.
The total U.S. deficit in international trade of goods and services fell more than 13% to $38.71 billion from an revised $44.60 billion the month before, the Commerce Department said Friday. The September trade gap was originally reported as $44.00 billion. Economists had predicted a $44.0 billion trade gap.
The U.S. trade deficit with China narrowed 8.3% to $25.52 billion as exports to the country surged 29.8% to a record high of $9.30 billion and imports fell slightly to $34.82 billion.
Separate data showed U.S. import prices posted a second strong gain in November, easing deflation concerns and suggesting a little inflationary pressure within an economy struggling to recover from a deep recession. The price of goods imported into the U.S. rose by 1.3% compared to the prior month, the Labor Department said Friday. Economists were expecting an 0.8% increase in November.
Earlier Friday morning, China's central bank said it will raise banks' reserve requirement ratio by 0.50 percentage points, the sixth such hike this year, as inflationary pressures strengthen. The announcement came as China's latest economic data showed its exports and imports both soared to record highs in November, while the country's trade surplus narrowed to $22.9 billion from October's $27.15 billion. The surplus was greater than economists' $22.3 billion median forecast.
The dollar slipped, with the U.S. Dollar Index, tracking the U.S. currency against a basket of six others, off 0.1%. Crude-oil futures rose while gold futures slipped.
Treasurys were mixed, with increased demand for the two-year note pushing its yield down to 0.61%, while a decline in the 10-year lifted its yield to 3.26%.
Among stocks in focus, Community Health Systems said Tenet Healthcare has rejected a takeover offer valued at $6 a share of cash and stock, or a roughly 40% premium to Thursday's closing price. Community Health Systems slipped 4.6% in premarket trading while Tenet surged 52%.
Beckman Coulter jumped 26% premarket after The Wall Street Journal reported that the company has put itself up for sale.
-By Donna Kardos Yesalavich, Dow Jones Newswires; 212-416-2188; donna.yesalavich@dowjones.com
Among the companies whose shares are expected to actively trade in Friday's session are Tenet Healthcare Corp. (THC), Green Mountain Coffee Roasters Inc. (GMCR) and Beckman Coulter Inc. (BEC).
Community Health Systems Inc. (CYH) made a $3.3 billion unsolicited offer for smaller rival Tenet Healthcare, in a deal that would create the country's largest hospital operator as measured by number of facilities. Tenet, which rejected the offer, surged 52% to $6.53 in premarket trading, above the $6 per share bid price, while Community's stock was down 4% at $30.51.
Green Mountain's fiscal fourth-quarter profit surged 92% as the specialty roaster reported K-cup shipments climbed sharply and revenue soared. Results for the latest quarter topped the company's expectations, but shares slumped 15% to $31.70 premarket as the profit outlook for the current quarter missed expectations and the company warned of volatility in coffee prices for the new year.
Beckman Coulter, which makes diagnostic instruments used in clinical testing, has put itself on the block and could fetch more than $5 billion in a sale, The Wall Street Journal reported, citing people familiar with the matter. Beckman rose 27% to $72.30 premarket.
National Semiconductor Corp.'s (NSM) fiscal second-quarter earnings jumped 78%, beating analysts' estimates, as sales jumped sharply and margins improved. But shares fell 5.8% to $14.10 premarket as the company forecast current-quarter revenue well below estimates.
Jackson Hewitt Tax Service Inc.'s (JTX) fiscal second-quarter loss narrowed slightly, topping analysts' estimates, as the company's costs declined. Shares rose 14% to $1.25 in recent premarket trading. Shares of the tax preparer surged 34% Thursday after saying it has secured full assisted-refund coverage for the 2011 tax season. With an assisted refund, customers don't have to pay for tax preparation up front. The tax preparation cost and other fees are deducted from the refund.
Aastrom Biosciences Inc. (ASTM) said Thursday it plans to offer an undisclosed number of common stock and warrants, with plans to use the proceeds to fund research and development and other capital expenditures. Shares of the biotechnology company slumped 17% to $2.54 premarket.
Standard & Poor's announced a number of changes to its indexes, including adding Cablevision Systems Corp. (CVC) and Netflix Inc. (NFLX) to its S&P 500 index, in moves that it says better reflect the market value of the companies. F5 Networks Inc. (FFIV) and Newfield Exploration Co. (NFX) were also added to the S&P 500 index, in changes that will take place after the close of trading on Dec. 17. Cablevision rose 5.5% to $35.20 premarket, as Netflix gained 4.2% to $199, F5 climbed 4.4% to $145.03 and Newfield moved up 3.9% to $72.80.
Borders Group Inc. (BGP) reported another dismal quarter, as it continues to be hurt by dropping sales and higher margins, and it faces a potential liquidity crunch next year while it considers a merger with larger rival Barnes & Noble Inc. (BKS), a move suggested recently by its second-largest shareholder. Shares dropped 12% to $1.20 premarket.
Pfizer Inc. (PFE) voluntarily withdrew its Thelin drug from markets where it's currently available and is halting global clinical studies as it said the pulmonary arterial hypertension treatment's adverse effects on the liver outweigh its benefits. Shares of the drug giant fell 0.5% to $16.68 premarket.
Fuel Systems Solutions Inc. (FSYS), a maker of alternative fuel components, said its planned sale of at least 2 million shares priced at a 5.2% discount to Thursday's close as the company seeks to pay down a credit line. Shares fell 4.1% to $30.33 premarket.
United Technologies Corp. (UTX) predicted sales in the coming year will be below analysts' expectations, though its earnings forecast was in line with views. Shares were slid 0.9% to $76.93 premarket.
Analogic Corp.'s (ALOG) fiscal first-quarter earnings soared from its very narrow profit a year earlier as the jump in the adjusted bottom line was better than analysts expected, though revenue fell short of views. The company unveiled a program to repurchase up to $30 million of its common stock, about 5% of its current market value. Shares of the maker of health- and security-imaging products were up 4.5% to $49.86 premarket.
Carrizo Oil & Gas Inc. (CRZO) announced plans to sell at least 3.5 million shares, with the oil-and-gas exploration company saying it plans to use proceeds from the offering to repay borrowings under its revolving credit facility. Shares slid 1% to $30 in premarket trading as the number of shares outstanding would rise by about 10%.
Pall Corp.'s (PLL) fiscal first-quarter earnings jumped 51%, beating analysts' expectations. The maker of filtration and purification products also raised its outlook for the year. Shares were up 4.6% to $50.25 premarket.
Harry Winston Diamond Corp. (HWD, HW.T) swung to a fiscal third-quarter profit--its second in a row after six in the red--as rough diamond volume and pricing grew, with rising demand seen across all markets. Shares fell 9.5% to $13 premarket.
Esterline Technologies Corp. (ESL) reported a surprise surge in profit to a record high in the company's fiscal fourth quarter as revenue climbed. Shares in the aerospace and defense manufacturer were up 5.4% at $68.05 in after-hours trading, which would represent its highest level ever, as the company projected earnings for the just-begun fiscal year ahead of estimates.
SeaChange International Inc. (SEAC) reported it swung to a fiscal third-quarter loss as results were stung by higher charges, while revenue and margins also fell. Results for the provider of software and hardware for video-on-demand television missed its downbeat expectations. Shares fell 5% to $7.95 in light after-hours trading.
Watch List
Canadian sporting-goods retailer Forzani Group Ltd.'s (FGL.T, FRZNF) third-quarter profit jumped a bigger-than-expected 20% on higher sales and margins as its restructuring efforts continue to bear fruit.
Energen Corp. (EGN) agreed to buy assets in the Permian Basin in Texas for $110 million from SandRidge Energy Inc. (SD), resulting in the energy holding company boosting its production and earnings forecast for 2011.
Standard & Poor's Ratings Services lowered General Maritime Corp. (GMR) by two notches to highly speculative territory and put the oil-tanker company on watch for further downgrades as liquidity evaporates.
Nara Bancorp (NARA) has reached an agreement to buy Center Financial Corp. (CLFC) in an all-stock deal worth $270 million, saying it will create the only Korean-American bank with a national footprint.
