FWIW:
Stocks to Open Higher as Oil Price Cools
Wednesday April 6, 8:58 am ET
By Anupama Chandrasekaran
NEW YORK (Reuters) - U.S. stock futures pointed to a higher market open on Wednesday as oil prices retreated for the third straight day, with shares of semiconductor companies getting a boost from a brokerage upgrade.
Merrill Lynch raised its rating on chip makers Altera Corp. (NasdaqNM:ALTR - News), Maxim Integrated Products Inc. (NasdaqNM:MXIM - News) and Broadcom Corp. (NasdaqNM:BRCM - News) to "buy" from "neutral." Altera was up 2.4 percent to $20, Maxim rose 1 percent to $40.85 and Broadcom jumped 1.8 percent to $30.30 on the Inet electronic brokerage.
But the software sector could face scrutiny a day after business software company Siebel Systems (NasdaqNM:SEBL - News) warned on Tuesday it expects to miss its first-quarter sales forecast. Siebel's shares fell 9.8 percent to $8.25 before the opening bell on Inet.
S&P 500 futures (SPM5) rose 2.7 points, above fair value accounting for interest rates, dividends and time to expiration on the contract.
Dow Jones industrial average futures (DJM5) were up 20 points, while Nasdaq 100 (NDM5) rose 5.5 points.
Oil inventory data will be released by the U.S. government at 10:30 a.m. EDT. Analysts polled by Reuters forecast an average crude stock rise of 2.2 million barrels for the week ended April 1. Gasoline stocks are expected to have fallen by 1.3 million barrels.
Oil prices (CLc1) fell 42 cents to $55.62 a barrel from recent record peaks on forecasts of swelling crude oil supply.
"Oil continues to come down, and we are expecting a build in crude inventory," said Larry Peruzzi, senior equity trader at The Boston Company Asset Management. "Merrill's upgrade is helping the chip sector but to the negative side is Siebel."
In merger action, telephone company MCI Inc. (NasdaqNM:MCIP - News) chose an acquisition offer from Verizon Communications Inc. (NYSE:VZ - News) over a higher takeover offer from Qwest Communications International Inc. (NYSE:Q - News).
MCI said Verizon's bid offered more certainty of closing, while Qwest's bid was unpopular with its customers. MCI fell 1.8 percent to $24.55.
Cablevision Systems Corp. (NYSE:CVC - News) plans to make a $16.5 billion cash bid for bankrupt cable company Adelphia Communications Corp. (Other OTC:ADELQ.PK - News), a source familiar with the talks said on Tuesday. Cablevision fell 1.2 percent to $27.50 on Inet.
Shares of Research In Motion Ltd. (Toronto:RIM.TO - News; NasdaqNM:RIMM - News) fell nearly 4 percent to $71.50 on Inet a day after the maker of the BlackBerry wireless e-mail device reported a quarterly loss.
Gap Inc. (NYSE:GPS - News) rose 1.4 percent to $22.20 on Inet after brokerage Jefferies & Co. raised its rating on shares of the retailer.
Dell Inc. (NasdaqNM:DELL - News) will be on investors' radars before its annual briefing for Wall Street analysts on Wednesday when it spells out its strategy. |
