GE to buy U.K. energy-equipment company; Asia rallies
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — U.S. stock futures were pointing to slight gains for Wall Street, with support coming from stronger markets overseas and a deal for General Electric Co.
Futures for the Dow Jones Industrial Average rose 11 points, or 0.1%. to 11,355, while those for the S&P 500 were up 0.7 points at 1,236.60.
Futures for the Nasdaq 100 index rose 0.5 points, or 0.1%, to 2,216.50.
U.S. stocks finished higher on Friday, with the S&P 500 reaching its highest close since September 2008, as investors cheered mostly positive economic data.
For Monday, there are no data or earnings for investors to sink their teeth into. However, there was a little deal news on the horizon after General Electric (GE 17.85, +0.13, +0.73%) said it would pay $1.3 billion for U.K. energy-equipment group Wellstream Holdings PLC.
The proposed acquisition will help GE boost its presence in the oil-and-gas sector, notably in Brazil, the company said in a statement. Wellstream’s board of directors said it will recommend shareholders accept the deal.
Shares of MGM Resorts International (MGM 13.27, +0.02, +0.15%) rose 4.8% in preopening trade.
The head of Emirates airline, Sheikh Ahmed bin Saeed Al Maktoum, was reportedly named chairman of Dubai World, which also overhauled its board.
Dubai World, which rocked global markets a year ago after announcing a freeze on loan payments, owns nearly 10% of MGM.
The drug sector could garner some attention, after French drug giant Sanofi-Aventis SA (SNY 32.59, -0.12, -0.37%) said on Monday that it’s extending its offer worth $18.5 billion for Genzyme Corp. (GENZ 69.82, -0.17, -0.24%) .
The companies have been at loggerheads over a deal for weeks.
Wal-Mart Stores Inc. (WMT 54.28, -0.06, -0.11%) said Monday that it is closing its Moscow representative office, given there is “no clear acquisition partner in the near term.” Wal-Mart said it will continue to pursue market entry opportunities in the country.
China could also be a focus for markets on Monday.
In Asia, shares rose on relief after the People’s Bank of China did not raise interest rates after data released on Saturday showed inflation up 5.1% on an annual basis in November, the fastest rise in two years. The central bank did lift banks’ reserve requirement late last week.
Shares also rose in Europe on Monday, with deal news helping drive gains there, along with relief over China’s decision not to hike rates.
Gold futures for December delivery rose $5.50 to $1,389.80 an ounce, while crude-oil futures rose $1.05 to $88.87 a barrel.
