Friday, December 11th, 2009
Pre-Market Round-Up for December 11, 2009
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Spectrum Pharmaceuticals, Inc. (SPPI), Bway Holding Company (BWY), and Superior Energy Services, Inc. (SPN) are three story stocks to watch as the market is set to open higher.
Story Stocks to Watch
- Spectrum Pharmaceuticals, Inc. (SPPI) – Shares of the pharmaceutical company rose higher in premarket trading after Zevalin demonstrated activity in several investigational Phase 2 trials presented at the 51st Annual Meeting of the American Society of Hematology. The drug also demonstrated activity in stem cell transplantation, and investors are bullish on its prospects going forward.
- Bway Holding Company (BWY) – Shares of the manufacturer and distributor of plastic containers moved sharply higher in premarket trading after Deutsche Bank upgraded the stock to a Buy from a Hold. The firm said that the company’s four quarter results had been helped by strong margins and that it has managed the downturn well. As a result, it also lifted its price target to $22 from $17 per share.
- Superior Energy Services, Inc. (SPN) – Shares of the oil and gas services company will be in play today after it agreed to buy Hallin Marine Subsea International, a provider of subsea services and engineering solutions focused on the subsea wells, for $168 million. The transaction will be funded through SES’s existing revolver credit facility and is expected to closer in the first quarter of 2010.
Market Preview
U.S. markets are set to open higher after retail sales rose nearly twice as much as expected and Chinese exports surprised to the upside. The Dow Jones Industrial Average rose 58 points to 10,400, the Nasdaq rose 8.5 points to 1,806.50, and the S&P 500 rose 5.8 points to 1,103 points during premarket trading as of 8:45 a.m. ET.
Investors will be looking towards a number of economic reports to guide the day’s trading. The Commerce Department said that retail sales rose 1.3% last month, versus market expectations of 0.7%. Preliminary Michigan Consumer Sentiment is also expected to come out at 9:55 a.m. ET with markets expecting a reading of 68.8, along with business inventories as well.
The dollar weakened slightly versus other major currencies during the overnight session, which helped to boost commodity prices. Gold and other precious metals rose higher, while oil broke a seven-day losing streak to gain 48 cents to $71.02 a barrel in electronic premarket trading on the New York Mercantile Exchange.
Overseas markets moved largely higher during the overnight session as well. In Europe, Britain’s FTSE 100 rose 52.59, or 1%, to 5,296.96, Germany’s DAX rose 73.15, or 1.28%, to 5,782.17, and France’s CAC 40 rose 27.19, or 0.72%, to 3,825.57. In Asia, Hong Kong’s Hang Seng rose 202.07, or 0.93%, to 21,902.11 and Japan’s Nikkei rose 245.05, or 2.48%, to 10,107.87.
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-- Written by David Breen
