Stock Futures Climb as Alaska Air Buys Virgin America
New York (Apr 4) Stock futures edged higher on Monday morning, looking to kick off the new week by extending Friday's year-to-date highs.
S&P 500 futures added 0.23% on Monday, Dow Jones Industrial Average futures rose 0.14%, and Nasdaq futures were up 0.22%.
Stocks hit their highest levels of the year on Friday after a better-than-expected jobs report for March and solid manufacturing data boosted investor confidence in the U.S. economy. The S&P 500 ended the week 1.8% higher, closing at its best level of 2016 on Wednesday and again on Friday.
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Crude oil prices on Monday were trading around the two-week low set on Friday. Oil slumped 4% to end last week at its lowest level since mid-March on doubts Organization of Petroleum Exporting Countries can agree upon a production freeze when they meet in Doha on April 17. West Texas Intermediate crude oil was down 0.2% to $36.72 a barrel on Monday morning.
Russia added to worries over an international supply glut after data showed its oil output rise to its highest level in nearly 30 years last month. The country produced 10.91 million barrels of oil a day in March, close to record levels seen in 1987. Russia will join OPEC members in negotiations in Qatar.
Virgin America (VA - Get Report) rocketed 40% higher after Alaska Air Group (ALK - Get Report) reached a deal to buy the airline for $57 a share. The deal including debt is worth a total $4 billion. Alaska Air expects the deal to increase annual revenue by 27%. The transaction is expected to be completed by January 2017 and potentially create the fifth-largest airline in the U.S.
SunEdison (SUNE - Get Report) slumped 32% in premarket trading on reports it is close to filing for bankruptcy, possibly within weeks. The alternative-energy company is speaking with two creditors to help fund operations during the chapter 11 filing process, according to The Wall Street Journal.
Apple (AAPL - Get Report) shares climbed nearly 1% in premarket trading after Credit Suisse analysts added the stock to their U.S. Focus List. The firm reaffirmed an outperform rating and raised its price target to $150 from $140.
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Source: TheStreet
