Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

US STOCKS-Wall St set for flat open as M&A offsets ADP

Published 05/04/2011, 09:08 AM
Updated 05/05/2011, 03:54 PM
NDX
-
US500
-
DJI
-
CASP
-
LVS
-
K
-

* ADP misses forecast, ISM non-manufacturing on tap

* Applied Materials to buy Varian

* ConAgra raises Ralcorp offer

* Futures up: Dow 2 pts, S&P 1.6 pts, Nasdaq 1.75 pts

* For up-to-the-minute market news see STXNEWS/US (Adds ADP data, quote, Kellogg earnings, updates prices)

By Chuck Mikolajczak

NEW YORK, May 4 (Reuters) - U.S. stocks were poised to open little changed on Wednesday as investors weighed a fresh round of proposed acquisitions against a weaker-than-expected employment report.

U.S. private employers added 179,000 jobs in April, short of economists' expectations of 198,000, a report by the payrolls processor showed. For details, see

"It wasn't a huge miss and ADP isn't necessarily always accurate in predicting the U.S. government employment numbers. But it's a miss nonetheless and shows the economy continue to improve but at a very slow, modest rate," said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York.

S&P 500 futures added 1.6 points and were slightly above 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 added 2 points, and Nasdaq 100 futures rose 1.75 points.

Chip equipment maker Applied Materials Inc is snapping up rival Varian Semiconductor Equipment Associates Inc for $63 per share in cash to acquire new technology to meet increased demand for smartphones and solar equipment.

Varian shares surged 51.6 percent to $61.48 in premarkettrade.

The ISM non-manufacturing index for April is due at 10 a.m., with economists forecasting a tick up to 57.4 from 57.3 in the previous month on growth in its business activity index.

"We still have some earnings going on and we are getting more and more M&A deals and that is certainly a positive for the market on multiple fronts," said Ghriskey.

The ISM non-manufacturing index for April is due at 10 a.m. EST [1400 GMT], with economists forecasting a tick up to 57.4 from 57.3 in the previous month on growth in its business activity index. ConAgra Foods Inc raised its offer for Ralcorp Holdings Inc to $86 a share in cash from $82 in cash and stock as it seeks to grow its private-label food business.

Ralcorp jumped 6.7 percent to $88.90 premarket, and ConAgra added 1 percent to $25.

Corporate profit reports were continuing to filter in as earnings season begins to wind down. Through Tuesday, with 360 of the S&P 500 companies reporting, 71 percent had earnings that topped estimates, according to Thomson Reuters data.

Kellogg Co lost 2.1 percent to $56.26 after the cereal and snack maker posted lower-than-expected quarterly profit on higher costs for ingredients and brand investments.

Las Vegas Sands Corp dropped 6 percent to $43.10 premarket after its Singapore casino-resort posted lower-than-expected profit.

Whole Foods Market Inc and News Corp are due to report later in the day.

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.