By Sara Sjolin, MarketWatch
Berkshire Hathaway slips after earnings
LONDON (MarketWatch) -- U.S. stocks were set to kick off March
on an upbeat note on Monday, with futures edging higher ahead of
raft of economic data -- including consumer spending and
manufacturing numbers -- that will provide a health check on the
economy.
Investors were also taking inspiration from Asia, where markets
rose after a Chinese central-bank rate cut.
Futures for the Dow Jones Industrial Average (DJH5) added 30
points, or 0.2%, to 18,157, while those for the S&P 500 index
(SPH5) gained 3 points, or 0.1%, to 2,105.80. Futures for the
Nasdaq 100 index (NDH5) picked up 11.50 points, or 0.3%, to
4,454.
The gains came after all three benchmarks on Friday closed out
February with solid gains
(http://www.marketwatch.com/story/us-stocks-wall-street-waits-for-gdp-sentiment-and-more-fed-speakers-2015-02-27)
after a month of more stable oil prices, a temporary solution to
Greece's debt woes and accommodative central-bank policies around
the world.
Data: There's no shortage of data to set the tone for the new
month on Monday. At 8:30 a.m. Eastern Time, a trifecta of economic
releases are due: personal income, consumer spending and core
inflation. All numbers are for January. Economists surveyed by
MarketWatch expect personal income to have risen by 0.4%, while
consumer spending is forecast to have slipped 0.1%. For core
inflation, the economists see a 0.1% month-on-month reading.
At 9:45 a.m. Eastern Time, the Markit manufacturing purchasing
managers index lands, followed by the ISM manufacturing index at 10
a.m. Eastern. Both are for February. Those MarketWatch-polled
economists forecast the ISM to have slipped back to 52.8%, from
53.5% in January.
Construction spending, also due at 10 a.m. Eastern, is expected
to have climbed by 0.3% in January. Read: Economic preview
(http://www.marketwatch.com/storyno-meta-for-guid)
Earnings: Reporting ahead of the opening bell, Mylan Inc.(MYL)
is projected to report fourth-quarter earnings of $1.05 a share,
according to FactSet estimates.
Also reporting on Monday, Sotheby's(BID) is forecast to post
fourth-quarter earnings of $1.28 a share.
Weight-loss company Nutrisystem Inc.(NSI) is expected to post
fourth-quarter earnings of 16 cents a share.
Salix Pharmaceuticals Ltd.(SLXP) is projected to report a
quarterly loss of 24 cents a share.
Movers and shakers: Warren Buffett's Berkshire Hathaway
Inc.(BRKA) slipped 0.2% premarket after the Neb.-based holding
company over the weekend posted lower earnings
(http://www.marketwatch.com/story/berkshire-hathaway-profit-shrinks-2015-02-28)
for the fourth quarter amid investment derivative gains of $192
million. Warren Buffett will answer questions submitted via
Twitter, Facebook and Instagram on CNBC from 6 a.m. to 9 a.m.
Eastern Time on Monday. Read: Two books Warren Buffett says you
should read
(http://www.marketwatch.com/story/two-books-warren-buffett-says-you-should-read-2015-02-28)
(http://www.marketwatch.com/story/two-books-warren-buffett-says-you-should-read-2015-02-28)Athersys
Inc.(ATHX) rallied 33% ahead of the bell after the biotech firm
said it has set up a license agreement with Chugai Pharmaceutical
Co. .
NXP Semiconductors NV(NXPI) jumped 15% premarket after
announcing a planned merger with Freescale Semiconductor Ltd.(FSL)
that will create a $40 billion company.
Qualcomm Inc.(QCOM) eked out a 0.3% premarket gain after Samsung
Electronics Co. Ltd. on Sunday introduced its new flagship Galaxy
S6
(http://www.marketwatch.com/story/samsung-unveils-galaxy-s6-to-answer-iphone-6-2015-03-01-131032526)
smartphone, which contains self-developed processors rather than
chips from Qualcomm.
Actavis PLC (ACT) was also in focus ahead of the pharmaceutical
company's expected bond sale as early as this week. Actavis needs
the cash to pay for its $66 billion purchase of Botox-maker
Allergan Inc. (AGN).
Chinese rate-cut: In a surprise move, the People's Bank of China
on Saturday lowered the benchmark
(http://www.marketwatch.com/story/story?guid=%7BC27BAEEA-5F05-42CD-939E-3B9DA0B4A35E%7D)
one-year loan to 5.35% and the one-year deposit rate to 2.5%, both
cut by a quarter of a percentage point. The central bank signaled
in a statement that a looming threat of deflation was a trigger for
the rate cut. Asian markets closed mostly higher on Monday
(http://www.marketwatch.com/storyno-meta-for-guid).
Other markets: Oil prices (CLJ5) moved firmly lower
(http://www.marketwatch.com/story/oil-slides-after-posting-strong-february-gains-2015-03-02)
after posting strong gains in February. Gold (GCJ5) inched higher
(http://www.marketwatch.com/storyno-meta-for-guid), while the
dollar (DXY) traded mixed against other major currencies.
European stock markets were largely higher
(http://www.marketwatch.com/storyno-meta-for-guid), holding on to
gains after data showed inflation rose to negative 0.3% in February
from negative 0.6% in January, while the currency union's
unemployment rate dropped to the lowest since 2012
(http://www.marketwatch.com/story/eurozone-jobless-rate-falls-to-lowest-since-2012-2015-03-02).
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