By Anora Mahmudova and Sara Sjolin, MarketWatch
Lumber Liquidators tumbles after '60 Minutes' report
NEW YORK (MarketWatch) -- U.S. stock futures struggled to hold
on to modest gains ahead of the opening bell, as investors assessed
personal-income data and waited for a raft of economic reports that
should provide insight into the health of the U.S. economy.
Consumer spending in January fell for the second straight month,
the first two-month decline since early 2009, as Americans paid
less for gasoline and saved more money.
Futures for the Dow Jones Industrial Average (DJH5) added 18
points to 18,145, while those for the S&P 500 index (SPH5)
slipped 1 point to 2,101.60. Futures for the Nasdaq-100 index
(NDH5) picked up 5.25 points, or 0.1%, to 4,447.75.
The small moves 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 was no shortage of data to set the tone for the new
month on Monday, but icy weather in the Washington could slightly
delay
(http://www.marketwatch.com/story/federal-offices-to-open-late-but-data-on-time-2015-03-02)
the release of some economic reports.
Consumer spending fell by more than expected, while the savings
rate rose as Americans chose to pocket savings from cheaper
gasoline.
The February Markit manufacturing purchasing managers index is
expected at 9:45 a.m. Eastern, followed by the ISM manufacturing
index at 10 a.m. Eastern. Those MarketWatch-polled economists
forecast the ISM to have slipped back to 52.8%, from 53.5% in
January.
Construction spending is also due at 10 a.m. Eastern, and 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) missed profit
expectations, but beat on revenues.
Movers and shakers: Warren Buffett's Berkshire Hathaway
Inc.(BRKA) were unchanged premarket after the Nebraska-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 answered questions submitted via Twitter,
Facebook and Instagram on CNBC 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)
Athersys Inc.(ATHX) rallied 20% ahead of the bell after the
biotech firm said it has set up a license agreement with Chugai
Pharmaceutical Co. .
Shares of Aruba Networks(ARUN) fell 1.5% in premarket trade
Monday, after the company announced an agreement to be acquired by
Hewlett-Packard confirming media reports out last week, in a deal
valued at $3 billion.
NXP Semiconductors NV(NXPI) jumped 14% premarket and Freescale
Semiconductor Ltd.(FSL) gained 5.2% after the two companies
announced a merger with that will create a $40 billion company
(http://www.marketwatch.com/story/nxp-freescale-agree-to-merge-2015-03-02).
Shares of Lumber Liquidators Holdings Inc.(LL) fell 26% in
premarket action after the retailer of hardwood flooring was linked
to toxic chemicals on "60 Minutes"
(http://www.cbsnews.com/news/lumber-liquidators-linked-to-health-and-safety-violations/).
Goodrich Petroleum Corp.(GDP) gave up 9% after the oil and gas
producer said it has started a public offering of 12 million shares
to repay debt and for other purposes.
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 lower
(http://www.marketwatch.com/storyno-meta-for-guid), even as 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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