Deal News Lifts Pre-Market Sentiment

Elena
02 Jul, 2007
New York City

U.S. stock futures moved to the upside on Monday on the first day of Q3. Pre-market mood was lifted by several takeover deals, which managed to offset rising oil prices and overseas terrorism worries. A group led by the Ontario Teachers Pension Plan, including two U.S. private-equity houses, agreed to buy BCE for $48.5 billion, sending BCE shares up 3%. On the economic news front, the ISM is due to release its manufacturing sentiment for June, which is largely expected to be unchanged from May.

[R]9:00AM Wall Street to open higher on takeover deals.[/R]

U.S. stock futures moved to the upside on Monday on the first day of the third quarter. Pre-market sentiment was lifted by several takeover deals, which managed to offset rising oil prices and overseas terrorism worries. A group led by the Ontario Teachers Pension Plan, including two U.S. private-equity houses, agreed to buy BCE ((BCE)) for $48.5 billion, sending BCE shares up 3%.

In other deal news, Carlyle Group reportedly offered between $33 and $35 a share for British cable operator Virgin Media. The offer values all of Virgin Media's equity at up to $11.7 billion. Virgin Media stock jumped 17% in pre-market trading. AT&T ((T)) agreed to buy mobile operator Dobson Communications ((DCEL)) in a deal worth $2.8 billion.

On the economic news front, the Institute of Supply Management is due to release its manufacturing sentiment for June, which is largely expected to be unchanged from May. On Monday before the bell, Dow futures expiring in September were up 22.00, or 0.12%, at 13,539 while S&P 500 futures rose 5.00, or 0.33%, to 1,524.40. Nasdaq 100 index futures rose 6.50, or 0.33%, to 1,962.50.