US STOCKS-Futures dip as resurgent US dollar tempers M&A

Published 09/21/2009, 08:12 AM
Updated 09/21/2009, 08:15 AM
NDX
-
DELL
-
CL
-

* Resurgent US dollar weighs on energy, mining stocks

* Dell proposes $3.9 bln takeover of Perot Systems

* Futures off: S&P 500 5.3 pts, Nasdaq 9.75 pts, Dow 49 pts

NEW YORK, Sept 21 (Reuters) - U.S. stock index futures fell on Monday as a resurgent U.S. dollar sparked a pullback in global commodity prices and investors sought more definitive signs to justify the market's six-month run-up.

Futures suggested that Wall Street would open down about half a percent or more, with shares of energy companies and miners among the notable drags. The energy sector exchange-traded fund shed 1.2 percent before the bell, and crude oil futures fell 2.1 percent to $70.54 a barrel.

"The focus right now is a little bit on the dollar," said Rick Meckler, president of investment firm LibertyView Capital Management in New York.

"Now that the dollar is rallying a little bit, it's pushing some technical traders to take some profits (in stocks). I think that's probably the biggest single factor this morning."

S&P 500 futures dipped 5.30 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were off 49 points, while Nasdaq 100 futures dipped 9.75 points.

Computer maker Dell Inc announced a $3.9 billion proposed takeover of Perot Systems Corp , a deal likely to underscore investors' hopes that stock valuations remained attractive even after the market's strong run-up from early March.

The boost from that news, however, was tempered by the rising U.S. dollar. The dollar index, which measures the greenback against a basket of major currencies, rose 0.5 percent. <.DXY>

The benchmark S&P 500 <.SPX> is up 58 percent since hitting a 12-year closing low in early March, partly because of strong second-quarter earnings and optimism that an economic recovery is gaining traction.

That optimism is beginning to come under some strain, however, as investors seek more clarity about the 2010 profit outlook and await hints of how strong results will be for the rest of the year. (Reporting by Ellis Mnyandu; editing by Padraic Cassidy)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.