From MARKET TALK:
1033 GMT [Dow Jones] US stocks are expected to start lower
Monday as the Cyprus bailout puts the euro crisis back into focus,
says GFT Markets strategist Fawad Razaqzada. Calls the DJIA down 85
points to 14,429 and the S&P 500 down 14 points at 1547. Still,
adds that markets are relatively composed. "We've already seen a
significant recovery in futures markets over the last few hours,"
Razaqzada says. "Sentiment may not have been dented too badly for
now, but any further jitters could see markets test fresh lows for
the day." The NAHB housing market index prints at 1400 GMT. DJIA
front-month futures contract currently down 0.6% at 14,350; S&P
500 futures contract 0.9% lower at 1539.30.
(nina.bains@dowjones.com)
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HOT STOCKS TO WATCH
Among the companies with shares expected to actively trade in
Monday's session are Constellation Brands Inc. (STZ, STZB),
Quicksilver Resources Inc. (KWK) and Suntech Power Holdings Co.
(STP).
Shares of Constellation rose 3.1% after hours to $47.17 on the
news that Anheuser-Busch InBev N.V. (BUD, ABI.BT), Mexico's Grupo
Modelo S.A.B. (GPMCY, GMODELO.MX) and the U.S. Justice Department
asked a federal court Friday to allow more time for settlement
talks that could resolve a government antitrust lawsuit challenging
the companies' planned merger. In a revised deal reached after the
Justice Department sued to block the original deal in late January,
AB InBev offered to sell an additional $2.9 billion of assets to
Constellation in a bid to rescue a proposed takeover of Modelo, and
agreed to sell Modelo's Piedras Negras brewery in Mexico to
Constellation. Constellation also is involved in the settlement
talks.
Quicksilver said it will restate its financial results for the
first three quarters of 2012, due to errors related to its
accounting for derivatives. Shares rose 2.5% to $2.84 in
after-hours trading, as the restatement is expected to result in
higher income for the past year.
Suntech said it didn't make a required payment on $541 million
of bonds that matured Friday. It was unclear what the company's
plans were for repaying investors, or whether a bankruptcy filing
might be in the works. Suntech shares jumped 5.7% to 74 cents after
hours Friday.
Watchlist:
Boeing Co. (BA) has picked General Electric Co. (GE) as the sole
supplier of engines for its 777X twin-aisle jet, expected to launch
near the end of the decade.
Oppenheimer Holdings Inc. (OPY) has accused Canadian Imperial
Bank of Commerce (CM, CM.T) of failing to fulfill its contractual
obligations related to the sale of CIBC's U.S. capital markets
business to Oppenheimer in January 2008.
Write to Nathalie Tadena at nathalie.tadena@dowjones.com
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