By Saumya Vaishampayan
U.S. stock futures advanced on Thursday, as oil prices rebounded
and Dow component Pfizer Inc. announced a $16 billion deal.
Dow Jones Industrial Average futures rose 92 points, or 0.5%, to
17660. S&P 500 futures gained 13 points, or 0.6%, to 2043 and
Nasdaq-100 futures added 17 points, or 0.4%, to 4221. Changes in
stock futures don't always accurately predict moves in the stock
market after the opening bell.
Pfizer agreed to buy Hospira Inc., which makes injectable drugs
and infusion technologies. Hospira shareholders will receive $90 a
share in cash, representing a premium of 39% to Wednesday's closing
price. Shares of Pfizer rose 2.4% and those of Hospira surged 36%
in premarket trading.
Adding to the positive tone in the market was a rebound in U.S.
oil prices. Crude-oil futures rose 2.5% to $49.65 a barrel.
Investors are looking ahead to labor-market data. At 8:30 a.m.
Eastern, jobless claims in the most recent week are expected to
rise to 290,000 from 265,000 in the prior period, according to
economists surveyed by The Wall Street Journal. On Friday, the
closely watched nonfarm payrolls report is expected to show the
economy added 237,000 jobs in January, as the unemployment rate
ticked down to 5.5% from 5.6%.
The Dow ended little changed Wednesday, giving up a gain of 116
points in late-afternoon trade after the European Central Bank
increased pressure on the new Greek government to come to terms
with its international creditors. The Dow added less than 0.1% to
17673.02, while the S&P 500 fell 0.4% to 2041.51.
Stock-market volatility has picked up this year, driven in part
by sharp swings in energy and currency markets. Uncertainty about
the impact of an interest-rate increase from the Federal Reserve,
concerns about Greece, signs of weakness in corporate earnings and
ongoing worries about global growth have also contributed to swings
in the stock market. In January, the S&P had eight days in
which it swung by at least 1%, more than the five times in January
2014. The Dow posted moves of 1% or more on 10 days in January,
more than double the four such moves in January 2014.
"There is an uptick in global volatility," said John Brady,
managing director at futures brokerage R.J. O'Brien. "It probably
allows the Fed a little more time," he said, referring to an
expected increase in interest rates.
Federal Reserve Bank of Boston President Eric Rosengren
suggested Thursday the dollar's rally has complicated the Fed's
efforts to get annual consumer-price growth back to target.
The ECB said Wednesday it would stop accepting Greek bonds as
collateral for central bank loans. Greece's new leaders are seeking
to ease conditions on its bailout program. The news, which was
released after the close of European markets, weighed on Greek
stocks and bonds Thursday. Germany's DAX fell 0.1% and France's CAC
40 lost 0.3%.
In Asian markets, China's Shanghai Composite Index fell 1.2% and
Japan's Nikkei Stock Average declined 1%.
Gold futures fell 0.1% to $1263.70 an ounce. The yield on the
10-year Treasury note was little changed at 1.795% versus 1.794% on
Wednesday.
Verizon Communications Inc. is close to selling a package of
wireline assets to Frontier Communications Corp. for around $10
billion, The Wall Street Journal reported. Shares of Verizon added
0.3%, while those of Frontier jumped 7.6% in premarket trading.
Anthem Inc., the second-biggest health insurer in the U.S., said
hackers broke into a database with personal information for about
80 million customers and employees. Shares fell 3.4% premarket.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
Access Investor Kit for The Dow Chemical Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US2605431038
Access Investor Kit for Hospira, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US4410601003
Access Investor Kit for Pfizer Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US7170811035
Access Investor Kit for Verizon Communications, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US92343V1044