Futures drop as Iraq
Send a link to a friend
[June 16, 2014]
By Chuck Mikolajczak
(Reuters) - U.S. stock index futures declined on Monday,
on the heels of the S&P's biggest weekly drop since
early April, as turmoil in Iraq sparked investor
* The United States is contemplating talks with its arch enemy Iran
to support the Iraqi government in its battle with Sunni Islamist
insurgents who routed Baghdad's army and seized the north of the
country over the past week.
* Geopolitical tensions in Ukraine also flared as Russian natural
gas exporter Gazprom reduced supplies to Ukraine on Monday after
Kiev failed to meet a deadline to pay off its gas debts in a dispute
that could disrupt supplies to the rest of Europe.
* Economic data expected on Monday include the Empire State
manufacturing survey for June at 8:30 a.m. (1230 GMT). Expectations
call for a reading of 15 versus the prior reading of 19.01.
* At 9:15 a.m. (1315 GMT), industrial production data for May is due
and the NAHB housing market index is set to be released at 10:00
a.m. (1400 GMT). Industrial production is expected to show an
increase of 0.5 percent against the 0.6 percent decline in the prior
month. The housing market index is expected to climb to 47 from a
* S&P 500 e-mini futures were down 5 points and fair value - a
formula that evaluates pricing by taking into account interest
rates, dividends and time to expiration on the contract - indicated
a lower open. Dow Jones industrial average e-mini futures fell 41
points and Nasdaq 100 e-mini futures lost 8.75 points.
[to top of second column]
* Merger activity continued to be active. Medical device maker
Medtronic Inc agreed to buy Dublin-based Covidien Plc for $42.9
billion and shift its executive headquarters to Ireland in the
latest move by U.S. firms to harvest lower tax rates abroad.
Medtronic shares gained 11.9 percent to $67.90 in premarket trade
while Covidien jumped 35 percent to $97.20.
* Williams Companies climbed 12.4 percent to $53.03 before the
opening bell. The pipeline operator said it agreed to acquire
control of Access Midstream Partners LP for $5.99 billion as the
first step toward merging it with its operations. Jefferies
subsequently upgrade Williams to a "buy" rating.
* European stocks slipped in early trading and most Asian share
markets struggled as mounting violence in Iraq prompted investors to
lock in more profits on recent equity market gains. [.EU]
(Reporting by Chuck Mikolajczak; Editing by Bernadette Baum)
[© 2014 Thomson Reuters. All rights
2014 Reuters. All rights reserved. This material may not be
published, broadcast, rewritten or redistributed.