Futures edge higher
Stock futures were suggesting a positive open for Wall Street on Monday, as bond yields retreated and traders digested the ongoing U.S. economic recovery and upbeat economic data from China.
Data from China’s official statistics office showed Monday that retail sales for the first two months of this year rose 33.8% while industrial production increased 35.1%.
By 5:20 a.m. ET, futures tied to the blue-chip Dow were indicated 124 points, or 0.36% higher to 32,789. S&P 500 futures added 10.87 points, or 0.28% to 3,943.62 while the tech-heavy Nasdaq 100 futures inched 39 points, or 0.30% to 12,963.25.
The Dow and the S&P 500 finished at record highs on Friday, while the Nasdaq fell as bond yields rose to the highest mark in more than a year. The 10-year yield was at 1.615% this morning, below its Friday’s high.
Eyes on U.S. Federal Reserve policy meeting
This week, traders will most likely focus on the U.S. Federal Reserve’s two-day monetary policy meeting which is set to kick off tomorrow.
While the Fed is not expected to announce changes to interest rates or its massive bond-buying program, some economists expect it to revise up its GDP target after President Joe Biden signed his $1.9 trillion Covid-19 stimulus plan into law last week.
The Fed decision will announce its decision at 2:00 p.m. ET on Wednesday, followed by a news conference by Chairman Jerome Powell half an hour later.
GenMark soars 29% after Roche says it’s buying the company for $1.8 billion
On the M&A front, shares in GenMark Diagnostics (NASDAQ: GNMK) rocketed in pre-market trading Monday after Roche Diagnostics announced it was acquiring the molecular diagnostic technology company for $24.05 per share in cash, or about $1.8 billion, on a fully diluted basis.
The Swiss pharmaceuticals manufacturer said the price represented a premium of 43% on the closing share price of GenMark on Feb. 10.
According to a press release provided by Roche, the acquisition has been approved by the boards of both companies and is expected to be closed during the second quarter of this year.
Genmark’s technology is used in coronavirus testing. As of this writing, GenMark stock was up 29.19% to $23.90 in pre-market trade.
Crude jumps buoyed by strong China data
Meanwhile, crude futures were trading higher on Monday helped by China’s solid retail sales and industrial production data, which lifted the energy demand outlook at the world’s largest crude consumer.
As of 5:20 a.m. ET, U.S. West Texas Intermediate (WTI) crude futures were up 51 cents, or 0.78% to $66.12 a barrel. International Brent crude futures were at $69.75, up 53 cents, or 0.77% a barrel.
