U.S. stock futures point higher as Alcoa gains; Dow futures up 0.3%

Investing.com – U.S. stock futures pointed to a higher open on Monday, as optimism over the start of earnings season and increased merger and acquisition activity overshadowed news of another strong earthquake hitting Japan.

Dow Jones Industrial Average futures pointed a gain of 0.30%, the S&P 500 futures edged 0.10% higher, while Nasdaq 100 futures indicated a rise of 0.2%.

The largest U.S. aluminum producer Alcoa was to be the first Dow Jones Industrial Average component to report earnings for the first quarter after Monday’s closing bell. Shares in Alcoa rose 1% in pre-market trade.

Eleven companies on the Dow and S&P 500 were scheduled to report results this week including JPMorgan Chase, Bank of America and Google.

Meanwhile, an earthquake rocked Northeast Japan earlier Monday, triggering a tsunami warning and briefly interrupting cooling operations at the crippled Fukushima power plant. The quake had a preliminary magnitude of 7.1 but was later downgraded to 6.6.

In deal news, shares in Endo Pharmaceuticals jumped 5.25% after it agreed to acquire urology and pelvic health company American Medical Systems in a deal valued at approximately USD2.6 billion. Endo said the deal was part of its transition from a drug-maker to a health care company. Shares in AMS soared 32.4% on the news.

Shares in Level 3 Communications, the largest U.S. fiber-based communications provider surged 25.7% after it announced the acquisition of telecom services provider Global Crossing for USD3 billion. Shares in Global Crossing soared 73.3% ahead of the open.  

The world’s largest maker of security systems Tyco International rallied 8.8% amid speculation Paris-based Schneider Electric was planning a takeover bid for the company. 

Other stocks in focus include NYSE Euronext, the operator New York stock exchange, which rejected an unsolicited joint-takeover bid of USD11.3 billion from Nasdaq OMX Group and Intercontinental Exchange in favor of their agreement with Deutsche Boerse.

Across the Atlantic, European stock markets were down as automakers led declines after Credit Suisse lowered its recommendation on the sector. The EURO STOXX 50 fell 0.5%, France’s CAC 40 slumped 0.75% higher, Germany's DAX dipped 0.35%, while Britain's FTSE 100 eased down 0.1%. 

During the Asian trading session, Japan’s Nikkei 225 Index closed 0.5% lower as high energy costs fuelled concerns that the economic recoveries in the U.S. and Europe could get derailed and potentially hurt Asian growth.
 
Also Monday, Federal Reserve Governors Charles Evans and Janet Yellen were to speak at public engagements.