9:00AM U.S. stock futures indicated a lower market opening. Retail sales jumped 1.4% in May.
U.S. stock futures traded lower on Wednesday, following several weak sessions in a row and news that U.S. retail sales advanced 1.4% in May. This is the biggest gain in 16 months, coming in well above analyst expectations of a 0.7% increase. Consequently, the dollar continued its recent upward move, rising 0.7% vs. the yen.
In another economic report, the Labor Department reported that prices of imported goods rose 0.9% in May, as imported petroleum prices climbed 2.7%. In addition, bond yields on 10-year Treasurys jumped 5.315%, up from 5.25% on Tuesday.
In deal news, investors led by The Blackstone Group, Goldman Sachs, Kohlberg Kravis Roberts and TPG revealed their bid offer of $46 a share, or $11.4 billion, for medical devices maker Biomet. Walt Disney (
DIS: chart) completed the sale of ABC Radio to Citadel (
CDL: chart) for $1.35 billion. S&P 500 futures fell a half point at 1,507.00 and Nasdaq 100 futures fell 1.5 points at 1,916.50. Dow industrial futures were up 8 points.
8:15AM Investor group offered $11.4 billion for Biomet.
Investors led by The Blackstone Group, Goldman Sachs, Kohlberg Kravis Roberts and TPG revealed their bid offer of $46 a share, or $11.4 billion, for medical devices maker Biomet (
BMET: chart).
LVB Acquisition LLC and LVB Acquisition Merger Sub announced on Wednesday that they started a tender offer to buyout the outstanding shares of the company, whose shareholders have shown reluctance to support the deal.
Following completion of the tender offer, LVB Acquisition will complete a second-step merger in which any remaining common shares of Biomet will be converted into the right to receive the same per share price paid in the offer. The offer and withdrawal rights will expire at 12:00 a.m.ET on July 11.
7:30AM NY-6:30PM Mumbai Sensex loses 128 points Wednesday in lackluster session.
The
Sensex on BSE finished Wednesday 127.92 points lower, or 0.91%, at 14,003.03.
The market-breadth was very weak. For 1,083 stocks which advanced, 1,372 declined and 85 were unchanged. Of the 30 stocks in the Sensex, only nine stocks advanced, while all the rest declined. The turnover on BSE was Rs 3,530 crore, lower than Rs 3,836 crore on Tuesday. On NSE, the turnover was Rs 8,096 crore, slightly lower than Rs 8,177 crore on Tuesday.
Economic news
The strike of the employees of state-owned airline Indian brought to a halt operations and wreaked havoc in airports across the country today. The workers paid no heed to the government’s threat of a lock-out, and were unfazed by warnings that the strike was illegal.
The rupee retreated against the U.S. dollar on Wednesday, June 13 2007, as buying from importers broke its rising streak.. In early trade, the rupee stood at 40.855 per dollar, lower than the previous close of 40.747.
Trading highlights
New issue Time Technoplast was the most-active stock with a turnover of Rs 636.30 crore followed by Reliance and Nestle. Time Technoplast ended at Rs 480.35 on BSE, 53% over the IPO price of Rs 315.
Advancers
Dr.Reddy''s surged 2.7% to Rs 628 and was the best performing stock in the Sensex. The stock rallied after Credit Suisse increased its rating to outperform from neutral. Satyam surged 1.7% to Rs 486. All other major IT stocks declined, though.
