MW: Stock futures edge higher as oil remains in focus
Dow Chemical in focus after Kuwait pulls out of joint venture
LONDON (MarketWatch) -- U.S. stock market futures pointed slightly higher Monday as oil prices continued to recover from lows and after Kuwait scrapped plans for a $17.4 billion joint venture with Dow Chemical.
S&P 500 futures rose 2.50 points at 871.40 and Nasdaq 100 futures added 6.50 points at 1,195.00. Dow industrial futures were up 28 points.
U.S. stocks ended higher in light trading Friday, led by gains in energy shares, with retailers also in focus as post-Christmas sales began in earnest. The Down Jones Industrial Average closed up 47 points, the S&P 500 gained 7.4 points and the Nasdaq Composite advanced 5.3 points.
Oil is likely to remain in focus Monday after a second day of strong gains pushed the February light crude contract back above $40 a barrel.
Rising tension in the Middle East pushed the contract higher as Israeli air strikes in the Gaza Strip continued and the country's Defense Minister Ehud Barak reportedly said it was fighting a "war to the death" with Hamas.
Light crude for February delivery rose $2.63, or 7%, to $40.34 a barrel in electronic trading, having reached $42.20 earlier in the day.
In other oil-related news, Kuwait said Sunday that it is terminating plans for its $17.4 billion joint venture with Dow Chemical Co. amid political opposition. Forming the venture -- known as K-Dow -- would have given the chemicals giant access to lower-cost petroleum and was a key part of CEO Andrew Liveris' strategy for the group. But the deal was reportedly heavily criticized by Kuwaiti lawmakers. See full story.
Shares in Dow Chemical were down around 2% in Frankfurt trading.
The move could also raise questions over Dow's planned acquisition of Rohm & Haas which reportedly was to be partly funded by the money received from Kuwait. Rohm & Haas noted in a brief statement Monday that the completion of the K-Dow deal wasn't a requirement of its takeover.
With little on the economic calendar, the dollar weakened against both the euro and the yen. The euro rose 1.5% at $1.4314, while the greenback fell 0.2% against the yen at 90.42 yen.
In international markets, Japan's Nikkei 225 rose 0.1% and the French CAC 40 index climbed 1%.
