9:45AM Market opened higher, boosted by takeover deals.

U.S. stocks opened higher, extending recent advance on the back of more deal news before the Independence Day break. However, gains were modest as investors remained cautious ahead of data on the manufacturing and housing sectors. The latest takeover news included a $7.2 billion bid from Kraft Foods (KFT) to buy Danone's biscuit and cereal unit. Kraft's shares fell 1.3%.

Automakers are in focus Tuesday, due to the release of June auto sales. Ford (F) lost 3.4%, while General Motors (GM) dropped 3% as another month of weak sales reports is expected. Ford also said that it is offering a premium to holders of its 5-year-old debt securities to convert them to common stock.

The Dow Jones industrial average was up 9.92 points, or 0.07%, at 13,545.35. Among blue chips, Caterpillar (CAT) dropped 3% after it was downgraded to reduce from neutral at UBS, which also cut the company's price target to $70 from $78. The Standard & Poor's 500 Index was up 2.33 points, or 0.15%, at 1,521.76. The Nasdaq Composite Index was up 3.38 points, or 0.13%, at 2,635.68.


9:00AM U.S. stock futures pointed higher ahead of Independence Day. Auto sales were in focus.

U.S. stock futures predicted a higher market opening on Tuesday, a day before the Independence Day break. Among pre-market highlights, automotive stocks attracted attention on June sales data. Sales at Ford Motor (F) are expected to fall between 7% and 9% with market share down to 15.9%. General Motors (GM) sales are seen falling as much as 13% in June, with its market share down about 3 percentage points to 23.9%. The Chrysler unit of DaimlerChrysler (DCX) is expected to report a gain of at least 7%.

On the merger-and-acquisition news front, Kraft Food (KFT) said ot agreed to acquire the global biscuit business of Groupe Danone (DA) for $7.2 billion. Further in deal news, Teck Cominco (TCK) agreed to buy Canadian listed copper miner Aur Resources for $3.9 billion cash and stock.

U.S. stock markets will close at 1 p.m. and bond markets will close at 2 p.m. Eastern for the holiday break. S&P 500 futures rose 4.3 points at 1,535.30 and Nasdaq 100 futures advanced 6.25 points at 1,978.25. Dow industrial futures rose 33 points.


8:15AM Kraft Foods agreed to buy Groupe Danone biscuit division for $7.2 B.

Kraft Foods Inc. (KFT) announced Tuesday that it launched a bid of 5.3 billion euros ($7.2 billion) in cash to acquire the biscuit division of French food company Groupe Danone SA. The biscuits and cereal division includes brands LU, Petit Dejeuner, Tuc, Mikado and others. The offer does not include Danone stakes in biscuit businesses Bagley in Latin America and Brittannia in India. Kraft believes that the purchase will expand its presence in the snacks business and help transform company’s international business.

French food giant Groupe Danone agreed to sell its biscuit business to U.S. rival Kraft Foods and said in a statement that its board is considering the bid on an exclusive basis. The transaction, which is subject to regulator approval, is expected to complete by the end of the year.


6:30PM Mumbai, 9:45 AM New York – Sensex reaches new record for the second day in a row. Telecom and consumer stocks power the rally.


Sensex in Mumbai trading jumped 1% or 142.25 to a record close at 14,806.51. Cement, engineering and textiles stocks lifted the index. The 14-month low inflation data reported on Friday, kept positive momentum at the opening. Banks, construction and telecoms stocks gained in the trading. Of the 30 stocks in the Sensex Index, 20 advanced and 10 declined.


IPO News

Spice Communications Ltd, joint venture between Telekom Malaysia and B.K. Modi Group, completed its initial public offering. The company raised 520 crore rupees ($128 million) by offering 113.1 million shares at Rs 46 per share. The company operates mobile phone network in states of Punjab and Karnataka. In the next two years company plans to build a national network and spend 700 crore rupees. The company stock is likely to start trading on July 19th or 20th. Modi Group will own 41% and Telekom Malaysia will control 39% after the offering.