Stocks – U.S. Futures Higher Ahead of Earnings, Data


Stocks - U.S. Futures Higher Ahead of Earnings, Data – U.S. futures rose on Monday, as investors turned their attention to a flurry of corporate earnings reports and reports that IBM is making one of the largest ever acquisitions in the tech sector, buying Red Hat.

The S&P 500 futures rose 19 points or 0.71% to 2,688.50 as of 6:51 AM ET (10:51 GMT) while Dow futures were up 92 points, or 0.37%, to 24,838.0. Meanwhile tech heavy Nasdaq 100 futures increased 66 points, or 0.97%, to 6,960.0.

Financial results were expected later Monday from Booz Allen Hamilton Holding (NYSE:BAH), Mondelez International Inc (NASDAQ:MDLZ), AvalonBay Communities Inc (NYSE:AVB) and Chase Corporation (NYSE:CCF), among others.

Market sentiment was also buoyed by reports that IBM (NYSE:IBM) is acquiring Red Hat Inc (NYSE:RHT), a software and technology distributor, in a deal valued around $34 billion.

According to a joint statement released Sunday, IBM, which has a market capitalization of $114 billion, will pay $190 per share in cash for Red Hat, a 63% premium to Friday’s closing share price of $116.68.

IBM was down 4.92% in premarket trading, while Red Hat surged 50.84%.

Elsewhere, Tesla (NASDAQ:TSLA) gained 0.78% amid news that Baillie Gifford & Co, one of the luxury car makers top shareholders, would be willing to invest more into the company. Advanced Micro Devices Inc (NASDAQ:AMD) increased 2.84% and Facebook (NASDAQ:FB) rose 1.73%.

Tower International Inc (NYSE:TOWR) fell 12.39% after its earnings results came in lower than expected while Randgold Resources (LON:RRS) decreased 0.31%.

On the data front, personal income and spending data for September are released at 8:30 AM ET (12:30 GMT).

In commodities, gold futures fell 0.03% to $1,232.10 a troy ounce while crude oil futures decreased 0.27% to $67.41 a barrel. The U.S. dollar index which measures the greenback against a basket of six major currencies, inched up 0.01% to 96.37.

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