Investing.com -- U.S. stock markets are poised to open sharply higher Friday, as oil major Chevron 's (NYSE:CVX) offer to buy Anadarko Petroleum (NYSE:APC) for $33 billion signals confidence in one of economy’s strongest growth engines.
Anadarko shares are indicated to open up 30% at over $61 after Chevron announced a cash-and-stock offer that values the shale-focused producer at $65 a share. Chevron stock is marked down 3%, as investors digest the message that the acquisition would take a year to be earnings-accretive for its own stock. The company also said it would increase its buyback program by 20% after completing the transaction.
“The combination of the two companies will create a 75-mile-wide corridor across the most attractive acreage in the Delaware basin, extending Chevron’s leading position as a producer in the Permian,” Chevron said in its statement. It will also increase its exposure to the fast-growing market for liquefied natural gas, through Anadarko’s operations in Mozambique.
Major index futures were already set to open higher, after stronger-than-expected Chinese export data for the first quarter reassured markets that Beijing’s fiscal and monetary stimulus measures have steadied the economy after its slowdown at the end of last year.
As of 06:30 AM ET (10:30 GMT), the S&P 500 futures contract was up 13 points, or 0.5%, the Dow futures contract was up 163 points, or 0.6%, while the Nasdaq 100 futures contract was up 27.5 points or 0.4%.
The market is gearing up for the unofficial start of earnings season, with first-quarter results from JPMorgan (NYSE:JPM) driving it to a 2.3% gain in premarket trade. Wells Fargo (NYSE:WFC) and PNC Financial (NYSE:PNC) are also due to report later.
The dollar index, which measures the greenback against a basket of major currencies, was down 0.3% at 96.860, down 0.3% as the euro hit a three-week high on the back of signs that Eurozone industrial production started to bottom out in February.
The better economic data helped crude oil to recoup all its losses from Thursday. The benchmark WTI futures contract was up 1.5% at $64.53.