St. to open flat with eyes on energy prices
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[September 15, 2014] By
NEW YORK (Reuters) - U.S.
stocks were set to open little changed on Monday as
traders gauged the effect of tumbling crude oil prices,
with the energy sector falling but bullish outlooks for
retail and other consumer stocks.
Brent crude oil fell to its lowest in more than two years, below $97
per barrel, weighed by a strong U.S. dollar and data showing China's
factory output grew at the weakest pace in nearly six years in
A further decline in crude oil prices will likely weigh on stocks as
the energy sector of the S&P 500 <.SPNY> continues to struggle, down
8 percent from its record set 12 weeks ago.
"On one hand, it is negative for energy stocks but very positive for
the consumer and for retail stocks," said Rick Meckler, president of
LibertyView Capital Management in Jersey City, New Jersey, about
falling oil prices.
He said the trend could also help keep interest rates low for longer
as it keeps a lid on inflation.
S&P 500 e-mini futures were down less than a point and fair
value - a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the contract -
indicated a slightly lower open. Dow Jones industrial average e-mini
futures were unchanged and Nasdaq 100 e-mini futures <NQc1> added
less than a point.
Yahoo was the most traded stock on the Nasdaq in premarket action as
traders looked for ways to step in front of Alibaba Group's debut,
expected on the NYSE later this week.
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Alibaba's could be the largest initial public offer in history and
has seen "overwhelming" interest, meaning Yahoo's 23 percent stake
could be worth more next week than it is now. Yahoo stock was up 1.7
percent with 1.9 million shares already traded.
"The Alibaba IPO is going to have a big effect, drawing money out of
some stocks, and how it performs can help say a lot about the tech
sector," LibertyView's Meckler said.
Stocks active early on Monday include Molson Coors, up 8.3 percent
at $77.75 after the Wall Street Journal reported that No. 1 brewer
Anheuser-Busch InBev was talking to banks about financing a possible
$122 billion takeover bid of SABMiller.
The report comes a day after Dutch brewer Heineken said it was
approached by SABMiller about a potential takeover.
(Reporting by Rodrigo Campos; Editing by Chizu Nomiyama and Nick
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