U.S. futures were rising premarket, kicking off a holiday-shortened week on a positive note Tuesday. S&P 500 and Nasdaq futures were climbing 0.1% each while Dow Jones Industrial Average futures climbed 0.2% before the market open.
World markets were mixed Tuesday with Asian indices climbing higher and European markets struggling. The Nikkei rose 1% while the Hang Seng climbed 0.9% and the Shanghai Composite closed trading up 3.3%. In Europe, the FTSE 100 and CAC 40 were down 0.2%, the Dax fell 0.3% with about two hours left in trading.
Shares of drugmaker Celator (CPXX) jumped more than 70% in premarket trading Tuesday after Dublin-based Jazz Pharmaceuticals (JAZZ) made a $1.5 billion takeover bid. Jazz will pay $30.25 a share for New Jersey-based Celator, nearly double its Friday close, as it looks to expand its product portfolio to include Vyxeos, Celator's treatment of a rare form of leukemia.
Jazz plans to acquire Celator through a tender offer and so-called second-step merger. The purchase is said to close in the third quarter this year, and owners of more than 18% of the target's stock have already signed up to its bid. By the end of September, Vyxeos is expected to be submitted for U.S. regulatory approval.
Celator is also Real Money's James "Rev Shark" Deporre's "stock of the week," writing in a Tuesday report that he expects the company's gains to help lift the broader biopharm industry this week.
Meanwhile, Verizon (VZ) cut a deal over the holiday weekend with roughly 40,000 strking employees, who are now set to resume work as soon as Wednesday. The agreement includes 1,300 call-center jobs and nearly 11% in raises over four years. That's up from the 6.5% increase that Verizon had proposed before the strike. The pact will also alter the company's health care plan in order to save Verizon money.
German automaker Volkswagen (VLKAY) also unveiled a look at its first-quarter earnings Tuesday, with a quarterly pretax profit of roughly $3.7 billion falling about 20% year over year.
The German automaker, whose shares came under pressure last fall on the discovery that the company had used a so-called "defeat device" on its engines to improve its emissions results, said it plans to compensate more than 500,000 U.S. car owners of its diesel cars, marking the start of what CEO Matthias Mueller predicts to be a "demanding" 2016.
The company highlighted the effect of reduced sales in Brazil and Russia for contributing to much of the decline. Mueller said in a Tuesday statement that Volkswagen "managed to limit the economic effects of the diesel issue and achieve respectable results."
--Written by James Passeri