U.S. futures higher on Fed stimulus hopes, Italy; Dow Jones up 0.25%
Published Apr 29, 2013 06:54AM ET
Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.25% gain, S&P 500 futures signaled a 0.28% rise, while the Nasdaq 100 futures indicated a 0.36% increase.
The Commerce Department said U.S. gross domestic product expanded by 2.5% in the three months to March, missing expectations for growth of 3.0%.
The disappointing data added to expectations that the Fed will continue its monetary easing program, amid lingering concerns over the outlook for the U.S. economic recovery.
Separately, market sentiment improved after a mew Italian government was formed over the weekend, putting an end to two months of political deadlock.
Pharmaceutical companies were expected to be in focus, amid reports Valeant Pharmaceuticals International is in merger talks with Actavis that have stalled over price. The news sent shares in Valeant surging 4.05% in pre-market trade.
According to the Wall Street Journal, Valeant is seeking to acquire Actavis for more than USD13 billion.
Elsewhere in M&A news, six major Vodafone investors said USD100 billion was not enough for the British company's stake in its U.S. joint venture with Verizon Communications, and urged it to come up with an offer of at least USD120 billion.
Vodafone shares dropped 0.49% in early trading.
Tech stocks were also likely to be active, amid reports Nokia Oyj is counting on a bare-bones handset that sells for just USD20 to give the Finnish company an edge in its struggle to catch up with Apple and Korean rival Samsung Electronics in the market for smartphones costing USD500 or more.
Apple shares were trading up 0.41% pre-market.
Across the Atlantic, European stock markets were higher. The EURO STOXX 50 climbed 0.43%, France’s CAC 40 advanced 0.70%, Germany's DAX rose 0.34%, while Britain's FTSE 100 edged up 0.08%.
During the Asian trading session, Hong Kong's Hang Seng Index was little changed, while markets in Tokyo and Shanghai are closed for the Golden Week public holidays.
Later in the day, the U.S. was to release a report on pending home sales.
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Written By: Investing.com
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