Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

UPDATED Pre-Market: BlackBerry Deal Falls Through, Shares Crash

By

Two months of US factory orders data are also due.

PrintPRINT
UPDATE: This article originally said that today is the due date for BlackBerry's purchasers to take the company private. This article has been updated to reflect breaking news.

After four straight weeks of gains on US stock indices, futures indicated a higher opening on Monday.

Before the start of the trading day, stock futures pointed toward a higher opening. Dow (INDEXDJX:.DJI) futures were up 0.35% at 15,596.00 while futures on the S&P 500 (INDEXSP:.INX) rose 0.34% to 1,760.70. Nasdaq (INDEXNASDAQ:.IXIC) futures climbed 0.49% to 3,384.50.

On today's economic calendar, US factory orders for August are expected to have increased 0.3% after plunging 2.4% in July. September orders will come out as well. Economists forecasts point to a 1.7% rise in September.

Global Markets

European shares are up this morning after countries published purchasing managers' indexes. France was the only country in the region besides Greece to go into a contraction in October. France's PMI reading came in at 49.1, below the breakeven threshold of 50. The pace of German expansion accelerated in October to 51.7 from 51.1 in September. Ireland shot up to a 30-month high of 54.9 and Austria rose to a 28-month high of 52.7. Italy slowed to 50.7 from 50.8. Spain rose to 50.9 from 50.7 as it had the sharpest rise in new orders since February 2011. The European Union as a whole picked up to 51.3 from 51.1.

China's services sector also showed strong growth last month. The country's non-manufacturing PMI rose to 56.3 from 55.4 in September.

Blackberry

BlackBerry's (NASDAQ:BBRY) plan to go private with the help of Fairfax Financial Holdings (OTCMKTS:FRFHF) has failed. Today was the deadline for Fairfax to finalize its $4.7 billion takeover. As the deal fell through due to trouble finding financing, the smartphone company will take on $1 billion in convertible debt, and CEO Thorstein Heins will step down as CEO; John Chen will take his place until the board finds a replacement CEO. Shares of BlackBerry were down more than 21% at the time of this writing.

There is still hope that BlackBerry might go private. Cerberus Capital, Qualcomm (NASDAQ:QCOMM) and the original co-founders of the smartphone company have considered a joint offer. There were even reports that Facebook (NASDAQ:FB) might have an interest in BlackBerry.

US Airways and AMR Corporation

The Department of Justice is demanding that US Airways (NYCE:LCC) and AMR Corporation (OTCMKTS:AAMRQ) to divest airport takeoff and landing slots at several airports before it approves of the merger of the two. The DOJ listed 1,000 routes that the two carriers dominate and competition could be further affected by a merger.

Federal Reserve members Jerome Powell and Eric Rosengren will deliver speeches today that could shed some more light on the central bank's thinking after the recent Federal Open Markets Committee meeting. On CNBC this morning, St. Louis Fed President James Bullard said that the Fed doesn't need to hurry to scale back its $85 billion monthly asset purchases and that inflation is not a concern yet.

Twitter: @vincent_trivett

< Previous
  • 1
Next >
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.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE