Wall Street Is Set to Climb Today
Enviado: 7/7/2003 13:07Reuters
Wall Street Is Set to Climb Today
Monday July 7, 7:32 am ET
LONDON (Reuters) - Wall Street stocks looked set to rise on Monday after a long weekend break, with software giant Microsoft (NasdaqNMMSFTNews) in focus as investors cheered reports of a special dividend.
Microsoft shares gained 3.8 percent to $27.50 on Instinet in pre-market trade. The company is considering paying a special dividend of more than $10 billion to reduce its $46 billion cash pile, according to the web site of London's Financial Times, citing a report in its affiliated French newspaper, Les Echos.
A Microsoft spokesman declined to comment on the report.
U.S. stock market futures indicated that Wall Street may open between one and 1.2 percent higher, but analysts said the market was likely to remain subdued until the quarterly earnings period gathers speed.
"The futures might take the market back up. But I don't think this level will hold, and I see a choppy period until more earnings are out... until there is some concrete evidence the economy is really turning around," said Steve Previs at brokers Jefferies International in London.
There are no major companies reporting on Monday, but earnings from aluminum giant Alcoa (NYSEAANews) on Tuesday and General Electric (NYSEGENews) on Friday will be keenly awaited.
Analysts said they expected the majority of corporate earnings to be in line with expectations.
"Companies lowered expectations at the end of the last quarter for the second half of the year, so hopefully disappointments will be rare," said David Buik at Cantor Index.
Investors were also eyeing Canada's Alcan Inc (NYSEALNews; TorontoAL.TONews), the world's second biggest aluminum maker, which launched a bid for French rival Pechiney on Monday (ParisPECH.PANews), valuing the firm at 41 euros per share.
If successful the deal would create a group with annual revenues of $24 billion.
In other corporate news, Larry Ellison (News), the chief executive of Oracle Corp (NasdaqNMORCLNews), said in an interview published by Italian newspaper Corriere della Sera on Sunday that he did not know if he would raise Oracle's $6.2 billion offer for software rival PeopleSoft Inc (NasdaqNMPSFTNews).
Oracle has already increased its offer to $19.50 per PeopleSoft share from an original $16, and some analysts say Ellison could boost the price again in the acrimonious takeover battle.
Elsewhere, investment banking giant Goldman Sachs (NYSEGSNews) said on Monday it had won initial approval to invest in China's main stock and bond markets under a landmark scheme to admit foreign investors.
Wall Street Is Set to Climb Today
Monday July 7, 7:32 am ET
LONDON (Reuters) - Wall Street stocks looked set to rise on Monday after a long weekend break, with software giant Microsoft (NasdaqNMMSFTNews) in focus as investors cheered reports of a special dividend.
Microsoft shares gained 3.8 percent to $27.50 on Instinet in pre-market trade. The company is considering paying a special dividend of more than $10 billion to reduce its $46 billion cash pile, according to the web site of London's Financial Times, citing a report in its affiliated French newspaper, Les Echos.
A Microsoft spokesman declined to comment on the report.
U.S. stock market futures indicated that Wall Street may open between one and 1.2 percent higher, but analysts said the market was likely to remain subdued until the quarterly earnings period gathers speed.
"The futures might take the market back up. But I don't think this level will hold, and I see a choppy period until more earnings are out... until there is some concrete evidence the economy is really turning around," said Steve Previs at brokers Jefferies International in London.
There are no major companies reporting on Monday, but earnings from aluminum giant Alcoa (NYSEAANews) on Tuesday and General Electric (NYSEGENews) on Friday will be keenly awaited.
Analysts said they expected the majority of corporate earnings to be in line with expectations.
"Companies lowered expectations at the end of the last quarter for the second half of the year, so hopefully disappointments will be rare," said David Buik at Cantor Index.
Investors were also eyeing Canada's Alcan Inc (NYSEALNews; TorontoAL.TONews), the world's second biggest aluminum maker, which launched a bid for French rival Pechiney on Monday (ParisPECH.PANews), valuing the firm at 41 euros per share.
If successful the deal would create a group with annual revenues of $24 billion.
In other corporate news, Larry Ellison (News), the chief executive of Oracle Corp (NasdaqNMORCLNews), said in an interview published by Italian newspaper Corriere della Sera on Sunday that he did not know if he would raise Oracle's $6.2 billion offer for software rival PeopleSoft Inc (NasdaqNMPSFTNews).
Oracle has already increased its offer to $19.50 per PeopleSoft share from an original $16, and some analysts say Ellison could boost the price again in the acrimonious takeover battle.
Elsewhere, investment banking giant Goldman Sachs (NYSEGSNews) said on Monday it had won initial approval to invest in China's main stock and bond markets under a landmark scheme to admit foreign investors.