Monday, May 4, 2009

Wall Street Set To Open Higher On Recovery Hopes, Sprint In Focus

. Monday, May 4, 2009

By stockOzone team

US stock futures pointed to a stronger start on Monday as investors shrugged off concerns about the health of nation’s banking system. Adding to the positive tone was better than expected quarterly results from Sprint Nextel. At 8:26 am ET, Standard & Poor's 500 Index futures rose 2.30 points to 878.40. Dow Jones Industrial Average futures increased 22 points to 8203. Nasdaq Composite Index futures climbed 10.50 points to 1409.

According to reports, both Bank of America (NYSE: BAC) and Citigroup (NYSE: C) are planning to raise more than $10 billion each in additional capital following preliminary findings of the U.S. stress tests on banks.

Results of the stress test conducted by government officials, the Federal Reserve will be released on May 7 publicly.

President Barack Obama on Monday is expected to propose changing provisions in the tax code in order to curb the practice of parking foreign earnings in offshore tax havens indefinitely

Sprint Nextel Corp. (NYSE: S) said that first quarter loss widened to $594 million, or 21 cents a share compared to a loss of $505 million, or 18 cents a share, in the prior year quarter. Revenue declined 12% to $8.21 billion.

Tyson Foods Inc. (NYSE: TSN) reported that its second quarter loss widened to $104 million, or 28 cents a share, compared to a loss of $5 million, or 2 cents a share, in the year ago quarter. Revenue remained relatively unchanged at $6.3 billion.

Meanwhile, talks between The Boston Globe and its unions to prevent the U.S. newspaper from shutting down halted early Monday morning after a midnight deadline passed.

Pepsi Bottling Group Inc. (PBG) announced on Monday that its board rejected a proposal from PepsiCo (NYSE: PEP) to acquire all outstanding Pepsi Bottling shares not owned by PepsiCo for cash and PepsiCo common stock.

On the front of economic data, construction spending and pending home sales for the month of March are scheduled for release at 10:00 am ET.

European stocks were mixed in afternoon trade. At 13:14 pm London time, the German DAX and French CAC added 1.40% and 0.87% respectively. The UK FTSE remained closed for a holiday.

Asian stocks finished with strong gains. The Hang Seng index of Hong Kong jumped 860.06 points or 5.54% to 16,381.05.

NYMEX Crude oil for June delivery declined as much as 55 cents or 1% to $52.65 a barrel.

Disclosure: Author does not own any of the stocks discussed here.

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