U.S. futures were having a strong start to the week Monday with the three major indices all in the green before the market opened.
The S&P 500 was leading the way, up 0.3% while the Nasdaq and Dow Jones Industrial Average both climbed 0.2%. Asian markets did not fare as well Monday with the Nikkei dropping 3.1%, the Hang Seng declining 1.5% and the Shanghai Composite index declining 0.3%. European indices were mixed with the Dax and CAC 40 up 1% and 0.5%, respectively. The FTSE 100 was closed Monday.
Crude prices were declining Monday with industry standard Brent crude futures contracts falling $0.17 to $47.20 per barrel while West Texas crude contracts were down $0.02 to $45.90 per barrel.
Oilfield service provider Halliburton (HAL) announced that it is calling off its $34.6 billion acquisition of rival Baker Hughes (BHI) due to regulatory concerns and "general industry conditions that severely damaged deal economics," the company said in a statement today. The European Commission began investigating the merger in January and the U.S. Justice Department moved to block the merger in April.
Loews (L) could face negative pressure in trading Monday as the commercial property and casualty insurance company missed analysts' first-quarter top- and bottom-line expectations. The company reported earnings of $102 million, or $0.30 per share, well short of analysts' $0.52 EPS estimates. Revenue for the quarter decreased 8.8% year over year to $3.2 billion.
Enbridge Energy Partners (EEP) shares will be under scrutiny after reporting mixed first-quarter results. The company earned 0.17 per share in the quarter, $0.06 better than Wall Street expected. Revenue for the quarter fell 25.7% amid falling commodity prices to $1.06 billion, missing analysts' $1.29 billion guidance.
AIG (AIG) was flat premarket, ahead of the release of the insurer's latest quarterly report scheduled for release after the closing bell. The company is expected to report bottom line results of $1 per share on revenue of $13.57 billion. Those totals are well below the $1.78 per share on revenue of $14.59 billion that the company reported a year ago. Separately, AIG announced that it raised $1.25 billion from the sale of shares of Chinese insurer PICC Property & Casualty Co.
Finally, Barron's feature article this weekend named drug distributor AmerisourceBergen (ABC) number one in its annual Barron's 500 list. The list ranks the companies doing the best job of boosting sales and investing for growth. AmerisourceBergen jumped from the 149 spot last year to the top spot this year. While Gilead Sciences (GILD), last year's number one, fell to the second spot.