futures up, page-2

re: futures up//u.s. stocks poised for sharp gains U.S. stocks poised for sharp gains on deal action
AAP News
22:03:020 3/04/2006
(Updates to add Ameristar deal, oil activity)
By Jennifer Coogan
NEW YORK, April 3 (Reuters) - U.S. stock index futures
indicated a robust market open on Monday amid brisk acquisition
action, including French telecommunications equipment maker
Alcatel's proposed $13.4 billion purchase of U.S. rival Lucent
Technologies Inc.
General Motors Corp. announced a $14 billion deal to sell a
controlling stake in General Motors Acceptance Corp., its
finance arm, to a consortium led by hedge fund Cerberus Capital
Management LP. ID:nWEN3766.
"We're looking higher, with Alcatel finally bidding for
Lucent and the sale of GMAC," said Peter Cardillo, chief market
analyst and chief strategist at SW Bach and Co. "We're going to
see probably a positive first day in the second quarter."
In other deal news, Constellation Brands Inc., the world's
largest wine company, announced a deal to purchase Canadian
winemaker Vincor International Inc. for about $1.09 billion
ID:nWEN3758.
Merger and acquisition activity signals confidence among
corporate executives about the current value of companies and
may stir investors' appetite for stocks.
S&P 500 futures were up 7.7 points, above fair value, a
mathematical formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract.
Dow Jones industrial average futures rose 39 points, and
Nasdaq 100 futures up 10.75 points.
Ameristar Casinos Inc. on Monday topped bids Aztar Corp..
Colony Capital LLC and Pinnacle Entertainment Inc. previously
made offers for the casino owner. ID:nWEN3749
Crude oil could be a wild card for stock investors, worries
about the impact of high energy prices on company profits and
consumer spending.
Oil rose as a portion of Nigerian output remained shut by
rebel attacks. The loss of production coincides with growing
demand from refiners in the United States. U.S. crude rose 44
cents to $67.05 a barrel in electronic trading. London-traded
Brent rose $1.20 to $67.11.
In economic news, a report on factory activity is due at 10
a.m. (1400 GMT). Economists forecast the Institute for Supply
Management manufacturing index rose to 57.9 in March from 56.7
in the previous month.
Also due at 10 a.m. are data on construction spending in
February, which could influence shares of home builders,
Cardillo said. Economists forecast a 0.4 percent gain in
spending in February versus a 0.2 percent gain in the previous
month.

REUTERS
Reut 12:04 04-03-06

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