Market to Open Higher, Auto Sales in Focus

Elena
03 Jul, 2007
New York City

U.S. stock futures predicted a higher market opening on Tuesday, a day before the Independence Day break. Among pre-market highlights, automotive stocks attracted attention on June sales data. Sales at Ford Motor are expected to fall between 7% and 9% with market share down to 15.9%. General Motors sales are seen falling as much as 13%, with its market share down about 3 percentage points to 23.9%.

[R]9:00AM U.S. stock futures pointed higher ahead of Independence Day. Auto sales were in focus.[/R]

U.S. stock futures predicted a higher market opening on Tuesday, a day before the Independence Day break. Among pre-market highlights, automotive stocks attracted attention on June sales data. Sales at Ford Motor ((F)) are expected to fall between 7% and 9% with market share down to 15.9%. General Motors ((GM)) sales are seen falling as much as 13% in June, with its market share down about 3 percentage points to 23.9%. The Chrysler unit of DaimlerChrysler ((DCX)) is expected to report a gain of at least 7%.

On the merger-and-acquisition news front, Kraft Food ((KFT)) said ot agreed to acquire the global biscuit business of Groupe Danone ((DA)) for $7.2 billion. Further in deal news, Teck Cominco ((TCK)) agreed to buy Canadian listed copper miner Aur Resources for $3.9 billion cash and stock.

U.S. stock markets will close at 1 p.m. and bond markets will close at 2 p.m. Eastern for the holiday break. S&P 500 futures rose 4.3 points at 1,535.30 and Nasdaq 100 futures advanced 6.25 points at 1,978.25. Dow industrial futures rose 33 points.


[R]8:15AM Kraft Foods agreed to buy Groupe Danone biscuit division for $7.2 B.[/R]

Kraft Foods Inc. ((KFT)) announced Tuesday that it launched a bid of 5.3 billion euros ($7.2 billion) in cash to acquire the biscuit division of French food company Groupe Danone SA. The biscuits and cereal division includes brands LU, Petit Dejeuner, Tuc, Mikado and others. The offer does not include Danone stakes in biscuit businesses Bagley in Latin America and Brittannia in India. Kraft believes that the purchase will expand its presence in the snacks business and help transform company’s international business.

French food giant Groupe Danone agreed to sell its biscuit business to U.S. rival Kraft Foods and said in a statement that its board is considering the bid on an exclusive basis. The transaction, which is subject to regulator approval, is expected to complete by the end of the year.