By Barbara Kollmeyer, MarketWatch
Valeant and Salix in deal news; euro tumbles
MADRID (MarketWatch) -- U.S. stock futures took a step back on
Monday from a late rally last week, as investors looked ahead to
home-sales data and began the countdown to testimony from U.S.
Federal Reserve Chairwoman Janet Yellen.
Deal news for Valeant Pharmaceuticals International Inc. and
Salix Pharmaceuticals Ltd. could make those shares active.
Futures for the S&P 500 index (SPH5) fell 4.6 points to
2,102.50, while those for the Dow industrials (DJH5) eased 35
points to 18,069. Futures for the Nasdaq 100 index (NDH5) dipped 1
point to 4,437.
The S&P 500 (SPX) and Dow industrials (DJI) both nabbed new
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 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, which will take it into a
multibillion-dollar market for drugs that treat stomach
disorders.
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).
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 in Ireland and central Jutland in
Denmark.
Earnings ahead:Dish Network Corp.(DISH), Dilllard's Inc.(DDS)
and Express Scripts Holding Co.(ESRX) are among companies due to
report results on 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, pushing 85 cents
lower, while gold also fell about $12, to $1,193.30 an ounce.
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