By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Valeant and Salix in deal news; oil, euro tumbles
NEW YORK (MarketWatch) -- U.S. stock futures retreated from
record levels Monday as energy companies came under pressure
following a slide in oil prices.
Investors await a report on existing-home sales, while assessing
a pickup Monday in merger-and-acquisition activity.
A planned acquisition by Valeant Pharmaceuticals International
Inc. valuing Salix Pharmaceuticals Ltd. at roughly $10 billion sent
Valeant shares higher.
Futures for the S&P 500 index (SPH5) fell 4 points to
2,103.10, while those for the Dow industrials (DJH5) eased 39
points to 18,065. Tech stocks were the exception, with futures for
the Nasdaq-100 index (NDH5) flat at 4,438.
Need to Know: Nasdaq at 5,000 isn't a pipe dream
(http://www.marketwatch.com/story/knocking-down-nasdaq-5000-as-us-dollar-sentiment-hits-extremes-2015-02-23)
The S&P 500 (SPX) and Dow industrials (DJI) both nabbed
record closes on Friday, at 2,110.30 and 18,140, respectively, with
weekly gains of around 0.6% for each. News that eurozone ministers
agreed to extend Greece's bailout for four months
(http://www.wsj.com/articles/eurozone-approves-greece-bailout-extension-1424435121?mod=mktw)
helped drive late gains for Wall Street.
Still, Greece must present a list of budget cuts and economic
overhauls by Monday for approval from its international lenders --
the European Commission, the European Central Bank and the
International Monetary Fund.
Also read: Why Germany beat Greece in the battle of the bailout,
in five charts
(http://www.marketwatch.com/story/how-germany-is-walloping-greece-in-the-battle-of-the-bailout-in-5-charts-2015-02-20)
(http://www.marketwatch.com/story/how-germany-is-walloping-greece-in-the-battle-of-the-bailout-in-5-charts-2015-02-20)
Yellen week: U.S. investors will find plenty to take their minds
off Greece, though, as Fed Chairwoman Janet Yellen will give her
semiannual testimony on the economy and monetary policy to Congress
on Tuesday and Wednesday this week. Investors will be looking out
for any comments on rate-hike timing, in particular.
Read: Three things Yellen could say to surprise investors
(http://www.marketwatch.com/story/three-things-yellen-could-say-to-surprise-investors-2015-02-20)
Jim Reid, strategist at Deutsche Bank, said in a note that
recent payrolls data could mean a "more upbeat view" of the U.S.
economy, but its analysts were wondering if Yellen will make a case
to Congress that the time could be nearing for the Fed to start
policy normalization.
"When Yellen is about to speak, we tend to have a bias towards
thinking she'll be fairly dovish, and with inflation where it is
globally at the moment, this is likely to hold back any negative
shock tomorrow night," Reid said in a note to investors.
On Monday, investors will get the Chicago Fed national-activity
index for January at 8:30 a.m. Eastern, and existing-home sales for
that same month at 10 a.m. Eastern.
Economic preview: U.S. economy's growth not touching all the
bases
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)Monday
deals: Valeant(VRX) said Sunday that it will buy Salix
(http://www.marketwatch.com/story/valeant-pharmaceuticals-to-buy-salix-for-about-10-billion-2015-02-22-161035324)(SLXP)
for about $10 billion in cash, which will take it into a
multibillion-dollar market for drugs that treat stomach disorders.
Shares of Valeant jumped 9%, while Salix fell 1%.
Bristol-Myers Squibb(BMY) announced on Monday an agreement to
buy privately-held biotechnology company Flexus Biosciences in a
deal that could be valued at up to $1.25 billion.
3M Co.(MMM) said Monday that it has entered into a definitive
agreement to buy Polypore International Inc.'s (PPO) separations
media business for a total purchase price of $1 billion
(http://www.marketwatch.com/story/3m-to-buy-polypore-unit-for-1-billion-2015-02-23).
Polypore shares jumped 12%, while 3M was flat.
Shares of Keurig Green Mountain (GMCR) rose 0.9% in premarket
trade Monday, after the single-cup coffee brewer announced a plan
to buy back 5.2 million of its shares owned by Luigi Lavazza for
about $619.7 million.
Shares of Ocwen Financial (OCN) ran up 6.5% in premarket trade
Monday, after the company announced a deal to sell a $9.8 billion
portfolio of mortgage servicing rights to Nationstar Mortgage
(NSM).
Apple Inc.(AAPL) said Monday that it will invest EUR1.7 billion
($1.92 billion)
(http://www.marketwatch.com/story/apple-to-invest-19-billion-in-european-data-centers-2015-02-23-5912328)
to build two data centers in Europe that will run 100% on renewable
energy -- in County Galway, Ireland and central Jutland,
Denmark.
Earnings ahead:Dish Network Corp.(DISH)(DISH) reported earnings
of $2.04 a share and the company said its Chief Executive Officer
Joseph Clayton will retire on March 31. Dilllard's Inc.(DDS) and
Express Scripts Holding Co.(ESRX) will also report Monday
(http://www.marketwatch.com/story/dish-dillards-express-scripts-earnings-in-focus-2015-02-23).
(http://www.marketwatch.com/story/dish-dillards-express-scripts-earnings-in-focus-2015-02-23)
(http://www.marketwatch.com/story/dish-dillards-express-scripts-earnings-in-focus-2015-02-23)Other
markets:European stocks
(http://www.marketwatch.com/story/european-stocks-higher-as-greek-bailout-extended-2015-02-23)
got a lift from news of Greece's bailout extension, while the euro
(EURUSD) fell 0.7% against the dollar after news that German
business confidence improved for a fourth straight month in
February, but less than expected.
In Asia, the Nikkei 225 index
(http://www.marketwatch.com/story/japan-stocks-advance-for-fourth-day-to-15-year-high-2015-02-23)
advanced for a fourth session to another 15-year high.
Oil prices (CLJ5) reversed an earlier gain, falling $1.8, or
3.5%, while gold (GCJ5) also fell about $3.9, to $1,201.20 an
ounce.
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