Pfizer to Lift Pharma Stocks

Elena
19 Dec, 2005
New York City

Asian-Pacific benchmarks finished higher with the Nikkei rising 1.4% on bargain hunting and exporter issues. European stocks traded mixed with the German DAX 30 down 0.2%, while averages in France and the U.K. gained each 0.1%. In corporate news, FPL Group and Constellation Energy Group agreed to merge, forming a company with a market capitalization of about $28 billion. Pfizer rose after the exclusivity of two of its patents was upheld.

U.S. MARKET AVERAGES

U.S. stock futures advanced in pre-market trading, pointing to a higher opening, boosted by the surging pharmaceutical sector which gained after the exclusivity of two Pfizer patents was upheld. Market sentiment was also lifted by an $11 billion energy deal and Google Inc.''s reported stake buy in Time Warner Inc.

Dow Jones futures were recently up 36 points, S&P 500 futures rose 4.3 points, and Nasdaq 100 futures were up 3 points.

In corporate news, FPL Group Inc. and Constellation Energy Group Inc agreed to merge, forming a company with a market capitalization of about $28 billion. The companies reported that under the deal, each Constellation Energy share will be exchanged for 1.444 common shares of the combined company, while each FPL Group share will be converted to 1 share of the combined entity. The new company formed in the merger will be called Constellation Energy.

Google is reportedly set to buy a 5% stake in Time Warner''s AOL division for $1 billion, pacing out Microsoft Corp. in the battle to arrange a partnership with the media giant''s Internet division.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks advanced across the region with the Nikkei finishing up after three straight losing sessions. The Japanese bellwether rose 1.4% on bargain hunting and strong exporter-related issues. Among other regional markets, South Korea’s Kospi climbed 1.4%, Taipei’s Weighted index gained 1.3%, and Hong Kong’s Hang Seng was up 1%.

European stocks turned mixed at mid-day trading, pressured by the energy sector but supported by surging drug stocks which gained after the exclusivity of two Pfizer patents was upheld. The German DAX 30 declined 0.2%, the French CAC 40 added 0.1%, followed by London’s FTSE 100, up 0.1%.

OIL, METALS, CURRENCIES

Crude oil prices advanced, reversing from recent declines. Light sweet crude for January delivery rose42 cents to $58.48 a barrel on the Nymex. Heating oil slightly rose to $1.7405, while gasoline was flat at $1.5692. Natural gas gained 27 cents to $13.899 per 1,000 cubic feet. London Brent climbed 36 cents to $57.49.

Gold prices climbed 1.2%, following last-week sharp declines. In London spot gold rose $6.05 to $509.29 per troy ounce.

The U.S. dollar climbed the most in three weeks against the yen, recovering from recent losses. The dollar bought 116.19 yen, up from 115.67.