By Steve Goldstein, MarketWatch
Dec 12, 2005
Stock market futures were pointing higher Monday, on a possible $30
billion acquisition in the oil sector, another price target upgrade from Wall
Street on Internet search engine Google Inc and noises from Kuwait that the
OPEC oil cartel won't change its output quota.
March-dated S&P 500 futures rose 4.8 points at 1,272.20 and Nasdaq 100
futures gained 6.5 points at 1,717.50.
On Friday, the Dow industrials closed 23 points higher at 10,778, the
Nasdaq Composite rose 10.3 points at 2,256 and the S&P 500 rose 3.5 points at
1,259.
The dollar saw weakness ahead of Tuesday's Federal Open Market Committee
interest-rate decision, with the euro climbing to $1.1878 from $1.1811 late
Friday.
Gold futures were higher for the eighth consecutive session Monday,
pushing to an early high of $544.50 an ounce amid continued robust demand for
the metal in Asia and reports of renewed central bank buying.
Front-month crude oil futures edged higher, recently up 45 cents at $59.84
a barrel amid a meeting of the OPEC oil cartel as well as weekend explosions
at a British oil storage facility co-owned by Total SA and Chevron unit
Texaco.
OPEC ministers said the cartel will keep unchanged its output quota of 28
million barrels of oil a day, but may act at a special meeting called for late
January.
Continuing the oil theme, ConocoPhillips is in negotiations to buy oil and
gas producer Burlington Resources Inc. for more than $30 billion, The Wall
Street Journal reported.
Also on the deal front, Viacom Inc.'s Paramount Pictures said Sunday it
sealed a deal to buy DreamWorks SKG for $1.6 billion, thwarting rival NBC-
Universal's five-month long courtship to acquire the independent movie studio.
Tommy Hilfiger Corp. has received takeover interest from three groups, The
Wall Street Journal added.
Google Inc. had its price target lifted by Credit Suisse First Boston to
$475 from $400, with CSFB saying it believes the momentum behind the online
advertising market is accelerating. The broker told clients that its
proprietary survey of chief marketing officers showed that 45% of them intend
to increase their Internet ad spending by an average 30% next year.
Google shares closed Friday at $411.01.
Google also may be lifted by news it will join the Nasdaq 100 index when
the closely followed technology benchmark is rebalanced this month.
Wal-Mart Stores over the weekend said it still expects same-store sales to
rise between 2% and 4% in December.
Overseas, Japan's Nikkei 225 rallied anew, climbing to a new five-year
high, while European equities were helped by a possible French satellite
television deal between Vivendi Universal, M6 and TF1.
Broker calls
Morgan Stanley upgraded United Technologies to overweight from equal-
weight, with the broker saying the conglomerate isn't getting the recognition
it deserves for the aerospace upcycle.
Lehman Brothers cut Post Properties to underweight from equal-weight,
citing valuation, and downgraded Equity Office Properties to underweight from
equal-weight, citing the possibility of a dividend cut. Lehman also reduced
Equity Residential to equal-weight from overweight, saying the stock reached
its target price of $40.
This MarketWatch news update is provided to you courtesy of Thomson
Financial.
This is Thomson Financial's Market Commentary, which is issued three times
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The information herein is believed to be true and accurate. We take no
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SOURCE Thomson Financial Corporate Group
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