Reynolds' Shift in Strategy?

Reynolds American (RAI) is in advanced negotiations to take over Niconovum, a Swedish maker of nicotine-replacement products that helps people quit smoking.

According to the Wall Street Journal, the deal is only worth about $44.5 million but it could be a big sign of more changes to come for the global tobacco industry.

Reynolds, the second largest cigarette-maker under Altria (MO), could shift more to smoking-cessation products. The big tobacco companies have owned pharmaceutical businesses but none have yet to market or sell approved cigarette alternatives.

From the Bull Pen: This takeover is just another clue, albeit a small clue, of increased risk-taking. And on the charts, the S&P 500 retaking 1070 is another positive sign. Consider Netflix (NFLX), which could be basing for a higher move. A sell stop can be set below $53 support.

From the Bear Cave: If you’re looking for a downside swipe, the Russell 2000 ETF (IWM) approaching its overhead 20-day moving average (currently 59.50) could be an opportunity. If and when.

A Quick Check Around the World

Asian trading closed with the Nikkei 0.20%, India 2.11%, Hang Seng 1.73%, Shanghai 0.36%, and Taiwan 0.99%.

Across the pond, we see the FTSE 1.81%, CAC 1.60%, DAX 1.67%

As of 8:20 a.m. EST, S&P Futures are trading +10.0 to 1076.00 and Nasdaq futures are +16.25 to 1745.75.

A Look at Commodities

Over in commodities, crude oil is +1.13 to 78.56 while gold is +13.5 to 1109.20 this morning. Silver is +0.38 to 17.750 and copper +3.705 to 298.95.

The dollar Index is -0.8050 to 75.1350.

No events on the radar today but click here for the full list of this week’s events.

Happy Monday, Minyans! It’s good to be back. Good luck and have a great day!