By Leslie Wines, MarketWatch
Dec 19, 2005
U.S. stocks are headed for gains Monday, with a legal victory for Pfizer
Inc. expected to spark a pharmaceutical sector rally while the
finalization of FPL Group Inc.-Constellation Energy merger terms should
create interest in energy shares.
The futures contract for the Dow Jones Industrial Average was up 30 points
at 10,952.
Futures contracts for the S&P 500 and the Nasdaq 100 were up 3.60 points
at 1,277.80 and up 2 points at 1,711.5.
U.S. stocks closed lower Friday, after a session made volatile by index
rebalancing and "quadruple witching" options expirations, as analysts
noted that the changes made it difficult to know whether price action was
driven by fundamental or technical factors.
The market Friday also got a boost from lower energy prices, as the crude
futures prices held below $60 a barrel for most of the session.
"It is difficult to tell whether the weakness in crude and natural gas
prices had to do with futures expirations, so today's action will be very
important," said Marc Pado, U.S. market strategist at Cantor Fitzgerald.
"If energy prices stay down this week, we could be losing a market
leadership group right as the 'window dressing' period approaches," Pado
said. "If that is the case, it could make for a rather muted Santa Claus
Rally. "
In pre-market electronic trade, energy prices were on the rise, with the
front-month crude contract 35 cents higher at $58.41.
Gold also was higher, with the futures contract up $5.10 at $511 an ounce.
There are no economic data releases Monday.
The Treasury market was trending lower, sending yields higher, ahead of an
afternoon auction of new three- and six-month notes. The benchmark 10-year
note last was down 6/32 at 100-9/32 with a yield of 4.465%.
The dollar regained some of the strength it lost last week, after Federal
Reserve officials signaled that an end to U.S. rate hikes may be in sight.
The dollar rose 0.5% to 116.16 yen as the euro fell 0.2% to $1.1986.
Stocks of note
In pre-market electronic trade, Pfizer zoomed up more than 11% to $25.20 a
share.
Late Friday a U.S. Judge ruled for Pfizer Inc. in its patent dispute with
Ranbaxy Laboratories Ltd. over Lipitor, the world's top-selling
prescription medication.
Other pharmaceutical stocks were swept higher before the opening, too,
including Merck & Co. Inc., which rose 3.4% to $31.04 and Bristol-Myers
Squibb Co., up 2.9% at $22.65.
FPL Group and Constellation Energy announced an $11 billion merger that
will create a company with a market capitalization of about $28 billion,
annual revenue of $27 billion and $57 billion in total assets.
Before Monday's opening FPL shares were 1.3% higher at $43.50.
The internet sector also should be a focus. Google Inc. reportedly plans
to buy a 5% stake in the AOL division of Time Warner, a move that would
edge out Microsoft.
Time Warner Inc. shares were up 11 cents $18.11 ahead of the opening.
This MarketWatch news update is provided to you courtesy of Thomson
Financial.
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SOURCE Thomson Financial Corporate Group
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