MARKET ..Stocks set for steady open
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 8:43 AM ET Dec. 6, 2001
NEW YORK (CBS.MW) -- Stocks are set for a steady open Thursday after enjoying massive gains on Wednesday as giddy investors put money to work in most market sectors.
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The futures markets improved significantly over the past hour, turning losses into gains. The December S&P 500 contract rose 1.90 points, or 0.2 percent, but was still trading about 0.20 point below fair value, according to HL Camp & Co. Nasdaq futures, meanwhile, added 2.00 points, or 0.1 percent.
Investors have a big merger to ponder on Thursday: Millennium Pharmaceuticals (MLNM: news, chart, profile) said it will nab COR Therapeutics (CORR: news, chart, profile) in a stock deal valued at $2 billion.
The deal values COR stock at $35 a share, a 77 percent premium from Wednesday's closing price. COR surged $10.26 to $30 while Millennium slid $2.45 to $33 in Instinet. See Indications.
In economic news, jobless claims fell 18,000 in the latest week to 475,000 in the latest week vs. the 465,000 level that had been expected.
Third-quarter productivity was downwardly revised to show a growth rate of 1.5 percent vs. the 2.1 percent rate that had been expected in the revision. Productivity was revised from the originally reported 2.7 percent growth rate. Check economic calendar and forecasts.
Treasury focus
Treasury bonds, which did a bad job in coping with the bull run in stocks and stronger-than-expected data on Wednesday, continued on their downward slope.
The fixed-income sector has suffered staggering losses since mid-November after rallying furiously for a week or so after Treasury announced the elimination of 30-year bond auctions on Oct. 31.
The 10-year Treasury note was off 21/32 to yield ($TNX: news, chart, profile) 4.995 percent while the 30-year government bond slid 23/32 to yield ($TYX: news, chart, profile) 5.405 percent.
Still ahead on the data front is the release of October factory orders, which are seen surging 7.2 percent.
In the currency sector, the dollar put on 0.3 percent to 124.55 yen while the euro added 0.1 percent to 88.88 cents. As had been expected, the European Central Bank left short-term rates unchanged at its policy-setting meeting Thursday.
Julie Rannazzisi is markets editor for CBS.MarketWatch.com in New York.
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