Little Change for U.S. Stock-Index Futures Before ECB
U.S. stock-index futures remained relatively unchanged, after equities climbed to a record, while investors awaited the European Central Bank’s decision on stimulus today and the monthly jobs report tomorrow.
Sprint Corp. advanced 4.2 percent in German trading after people with knowledge of the matter said it is nearing a price agreement for a potential acquisition of T-Mobile US Inc. T-Mobile rose 2.1 percent in early New York trading. Twitter Inc. added 1.4 percent after Pacific Crest Securities started coverage of the shares with a rating similar to buy.
Futures on the Standard & Poor’s 500 Index (SPX) expiring this month fell less than 0.1 percent to 1,925.2 at 6:48 a.m. in New York. The benchmark equity gauge gained 0.2 percent yesterday to an all-time high amid better-than-estimated data on service industries. Dow Jones Industrial Average contracts increased 4 points, less than 0.1 percent, to 16,722 today.
“U.S. investors will be looking at Europe,” Jeremy Batstone-Carr, head of research at Charles Stanley & Co., said in a phone interview. “Nobody quite knows what Draghi is going to do and indeed whether he can do enough to stimulate the economy or massage the exchange rate.”
Economists predict that ECB President Mario Draghi will lower the central bank’s benchmark interest rate and take the deposit rate to below zero to support the economic recovery.
All but two of 60 economists surveyed by Bloomberg News forecast the ECB will cut the interest rate from 0.25 percent. Their median projection calls for a cut to 0.1 percent. They also predicted the ECB will lower its deposit rate to minus 0.1 percent from zero. The decisions are due at 1:45 p.m. in Frankfurt and Draghi will address reporters 45 minutes later.
T-Mobile Deal
Sprint climbed 4.2 percent to $9.80 in Frankfurt. The third-largest U.S. wireless carrier is nearing an agreement that could value T-Mobile (TMUS) US Inc. at almost $40 a share, according to people with knowledge of the matter. The deal covering the price, capital structure and termination fee could be announced as soon as July, the people said.
T-Mobile advanced 2.1 percent to $35 in early New York trading.
Twitter rose 1.4 percent to $33.37 in pre-market trading. Pacific Crest rated the shares outperform, projecting a gain in their price to $45 in 12 months.
Inovio Pharmaceuticals Inc., a developer of cancer drugs, jumped 36 percent to $3.09 in early New York trading before its 1-for-4 reverse stock split comes into effect today. Trading on the consolidated shares will begin tomorrow.
Source: bloomberg
