Pre-Market: Global Markets Decline for Second Day; China Approves Nokia's Sale to Microsoft

By Alex Brokaw  APR 08, 2014 8:45 AM

Eli Lily and Japan's Takeda Pharmaceutical ordered to pay $9 billion.

 


Stock futures pointed toward a mixed open Tuesday.

Before the opening bell, Dow Jones (INDEXDJX:.DJI) futures fell 0.07% to 16,167. Futures on the S&P 500 (INDEXSP:.INX) were down 0.06% to 1,837.00. Nasdaq (INDEXNASDAQ:.IXIC) futures moved higher, rising 0.06% to 3,501.25.

Chinese authorities have given the OK for Nokia (NYSE:NOK) to sell its mobile phone business to Microsoft (NASDAQ:MSFT), a $7.4 billion deal struck last September. The news follows approval of the sale from US and European regulators. Shares of Nokia rose 5.12% in pre-market trading.

A busy day of economic indicators was led by the NFIB Small Business Optimism Index, which showed small-business confidence for March mostly reversed February's decline. ICSC-Goldman Retail Store Sales showed same-store sales rose by a sharp 1.5% in the past week. Redbook chain-store sales will come at 8:55 a.m. At 10:00 a.m., the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) will show job opening data for February. At 1:00 p.m. investors can expect the results of the $30 billion, 3-year note auction. A trio of Fed presidents will speak today: Minneapolis's Narayana Kocherlakota at 1:00 p.m., Philadelphia's Charles Plosser at 2:45 p.m., and Chicago's Charles Evans at 4:00 p.m.

The International Monetary Fund will release its World Economic Outlook today, a twice-yearly projection that is expected to reveal increasing global growth estimates driven by expansion in advanced economies. The IMF and World Bank officials will convene in Washington, DC, this week for their annual spring meetings.

Asian markets had a mixed session overnight, finishing with more exchanges in the green than red. Gains were led by China, while Japanese stocks ended lower. The Bank of Japan left key interest rates steady. European shares fell for a second day as tensions between Russia and Ukraine once again increased and uncertainty in the region drove caution among investors. The UK reported growing manufacturing output.

In other stock news, a whopping 14 initial public offerings will price by Thursday evening, the most in one week since November 2007. Today, hotel chain La Quinta will price between $18 and $21 per share. Ally Financial, General Motors' (NYSE:GM) financing arm, will price this week between $25 and $28 per share.

Japan's Takeda Pharmaceutical (OTCMKTS:TKPYY) and Eli Lily (NYSE:LLY) have been ordered to pay a combined $9 billion in damages after a US federal court found they hid the cancer risks of their Actos diabetes drug. In other settlement news, Citigroup (NYSE:C) has agreed to pay 18 institutional investors $1.13 billion following demands that Citigroup buy back its residential mortgage-backed securities. Pre-market shares of Eli Lilly were down 1%. Citigroup rose 0.06% ahead of the open.

Twitter: @brokawbrokaw
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.