June 16 Premarket Briefing: 10 Things You Should Know
Here are 10 things you should know for Monday, June 16:
1. -- U.S. stock futures were pointing lower on Monday amid escalating violence in Iraq and ahead of the Federal Reserve's policy meeting later this week.
European stocks continued to slide on Monday and Asian indices closed mixed. Japan's Nikkei 225 index declined 1.1%.
2. -- The economic calendar in the U.S. on Monday includes the Empire State Manufacturing Index for June at 8:30 a.m. EDT, industrial production and capacity utilization for May at 9:15 a.m., and the NAHB Housing Market Index for June at 10 a.m.
3. -- U.S. stocks on Friday rose as the escalating situation in Iraq hung heavy in investors' minds and so-so U.S. economic data kept Wall Street cautious.
The S&P 500 gained 0.31% to close at 1,936.16, the Dow Jones Industrial Average rose 0.25% to 16,775.74, and the Nasdaq added 0.3% to 4,310.65.
The three indices, however, finished the week lower, the first weekly decline in three weeks.
4. -- Medtronic
The combined company will have its executive offices in Dublin, where it could benefit from Ireland's lower corporate tax rates. But the merged company would continue to operate in Minneapolis, where Medtronic employs more than 8,000, the companies said in a statement late Sunday.
Medtronic is paying a 29% premium on Covidien's stock price as of Friday.
Medtronic makes pacemakers and insulin pumps, among other products. Covidien specializes in surgical equipment.
As a result of savings from the deal, Medtronic said it would spend an additional $10 billion over the next decade in investments, acquisitions and research and development in the United States.
5. -- Germany's Siemens
Siemens and Mitsubishi Heavy announced their partnership Wednesday, promising to submit a bid to Alstom's board by Monday, but they offered no details of how the partnership would work or what their offer would look like. Later in the week, Japan's Hitachi said it would work with Mitsubishi Heavy on a possible bid.
The three are preparing an offer that will give Siemens Alstom's gas turbines and allow Mitsubishi and Hitachi to expand their steam turbine and hydro business operations, Bloomberg reported Sunday, citing people familiar with the situation.
6. -- Williams Cos.
The deal gives Williams, the fourth-largest U.S. pipeline company based on market capitalization, control over the industry's largest gathering and processing master limited partnership as measured by throughput volume, according to Reuters.