Dow points lower on Spanish economic woes, Sunoco, NYSE Euronext in focus
U.S. equity markets looked set to open lower after Spain's GDP report showed the nation is in recession and ahead of domestic economic reports on personal spending and income.
In pre-market trading, the Dow Jones Industrial Average fell 11 points, or 0.1%, to 13,153.22, the S&P 500 lost 2.3 points to 1,396.20 and the Nasdaq shed 4 points to 2,732.75.
Just days after S&P downgraded Spain's credit rating and its unemployment rate hit a record high, Spain's government said its rate of economic growth declined in the first quarter, revealing the nation's economy was in recession.
It has been a strong Of the 269 S&P 500 companies that reported through the end of last week, 78% topped consensus Wall Street estimates, according to FactSet Research. That compares with an average of 72% over the previous four quarters.
Friday US markets ended in the green with the Dow up 0.18%, the S&P 500 was 0.24% higher and the Nasdaq was up 0.61%.
In corporate news, Energy Transfer Partners (NYSE:ETP), a natural-gas pipeline operator, has agreed to acquire independent refiner Sunoco (NYSE:SUN) in a $5.3 billion deal that would create one of the largest and most diversified energy partnerships in the U.S.
ETP said it will pay either $50 in cash, 1.0490 of its common units or a combination of $25 in cash and 0.5245 common units for each Sunoco share. The estimated $50.13 per share value is a 23% premium to Sunoco's Friday closing price.
NYSE Euronext (NYSE:NYX) said its profits fell by almost a third in the first quarter due to a difficult trading environment and costs from its failed merger with Deutsche Boerse.
China Eastern Airlines Monday agreed to buy 20 new Boeing (NYSE:BA) B777-300ER aircraft from Boeing valued at $5.94 billion based on the 2011 price catalogue.
Pall Corp. (NYSE:PLL) has agreed to sell some of its blood collection, filtration and processing product lines to Haemonetics Corp (NYSE:HAE) for about $550 million.
On the economic front, personal income and spending for March is seen rising 0.8%, higher than what's been seen in several months.
The Chicago Purchasing Managers' Index for April, a regional manufacturing report, is expected to show a minor decline from March, decreasing from 62.2 to 60.0, according to Briefing.com.
In NYMEX futures trading, crude fell 52 cents to $104.41 a barrel while gold futures dropped $1.30 to trade at $1,663.50 an ounce.
European stocks were mixed in morning trading with the FTSE 100 and the DAX edging higher by 0.2% with the CAC 40 sliding 0.6%.