BLBG:U.S. Stock-Index Futures Are Little Changed Amid Syria
U.S. stock-index futures were little changed, following a two-day gain for the Standard & Poor’s 500 Index (SPX), as investors awaited a report on private payrolls and concern mounted that the U.S. will strike Syria.
Astex Pharmaceuticals Inc. added 2.9 percent after Otsuka Holdings Co. offered to buy the company for as much as $886 million. Louisiana-Pacific Corp. surged 8.9 percent after agreeing to buy Ainsworth Lumber Co.
Futures on the Standard & Poor’s 500 Index expiring this month lost less than 0.1 percent to 1,653.1 at 8:03 a.m. in New York. The equities gauge rose for a second day yesterday after the Federal Reserve said the economy maintained a modest to moderate pace of growth. Contracts on the Dow Jones Industrial Average slipped 10 points, or 0.1 percent, to 14,914 today.
“I think we’re going to go through a period of increased volatility and it could go either way,” said Nick Xanders, an equity strategist at BTIG Ltd. in London. “Syria will cause further spikes in oil as it looks like there will probably be some sort of action there.”
The Senate Foreign Relations Committee voted to authorize President Barack Obama to conduct a limited military operation in Syria. The full Senate will begin to discuss the president’s plans when it reconvenes on Sept. 9. The Obama administration has sought congressional approval to attack the regime of Bashar al-Assad following suspected chemical-weapon attacks on Aug. 21.
Fed Tapering
Fed policy makers will probably decide to buy fewer assets at their next meeting, according to 65 percent of economists surveyed by Bloomberg on Aug. 9-13. The Federal Open Market Committee holds its next two-day gathering on Sept. 17-18.
“I think that the concerns surrounding tapering and the debt ceiling in the U.S. are underestimated and that people are fairly complacent at this stage of the game,” Xanders said.
A report from the ADP Research Institute at 8:15 a.m. New York time will probably say that companies in the U.S. added 184,000 jobs last month, according to the median economist estimate compiled by Bloomberg. That would follow a 200,000 increase in net hiring in July.
The Labor Department’s monthly jobs report, which is due tomorrow, will probably show that U.S. payrolls rose by 180,000 in August, while the jobless rate remained at 7.4 percent, a separate poll showed.
A report from the Institute for Supply Management at 10 a.m. today will probably show that service industries grew at a slower pace last month. The ISM’s gauge slipped to 55 in August from 56 in July, according to economists surveyed by Bloomberg. Readings above 50 mean that activity increased.
The European Central Bank kept its benchmark interest rate unchanged at a record low after the 17-nation euro area returned to growth in the second quarter. In the U.K., Bank of England officials also left rates unchanged at 0.5 percent.
Astex Advances
Astex Pharmaceuticals added 2.9 percent to $8.51. Otsuka, the maker of the mood-stabilizing drug Abilify, confirmed that it plans to acquire Astex to expand into cancer medicines.
Otsuka offered $8.50 a share for Astex, a 27 percent premium over the Dublin, California-based biotechnology company’s $6.68 closing price on Sept. 3, before the deal was reported. Astex surged 24 percent yesterday after the Nikkei newspaper said Otsuka planned to buy the company for 90 billion yen ($901 million).
Louisiana-Pacific rallied 8.9 percent to $15.26 after agreeing to buy Ainsworth Lumber for about C$906 million ($863 million) in cash and stock. The Canadian company makes a substitute for plywood called oriented strand board.
To contact the reporter on this story: Tom Stoukas in Athens at astoukas@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
