Barnes & Noble Soars Pre-Market on Report of Microsoft Nook Deal
NEW YORK ( TheStreet) -- Stock futures were indicating a lower open Thursday despite an encouraging labor market report, and after a report that Microsoft
Barnes & Noble was soaring 27.3% to $22.68 in pre-market trading after TechCrunch reported that Microsoft is offering to buy Nook for $1 billion. TechCrunch cited internal documents obtained by the technology news site. Microsoft was dropping 0.8% in pre-market trading to $32.73.
Futures were falling in an apparent retreat that follows a flurry of buying activity during the prior session that brought investors in from the sidelines, attracted by strong corporate earnings and continued accommodative monetary policies.
"We set new records every day and when you get near the 1,630 area there's going to be some natural resistance," said JJ Kinahan, Chicago-based chief derivatives strategist at TD Ameritrade.
Futures for the S&P 500 were down 1.5 points, or 1.34 points below fair value, to 1,627.25. Futures for the Dow Jones Industrial Average were down 7 points, or 3.12 points below fair value, to 15,055. Futures for the Nasdaq were down 6.5 points, or 6.94 points below fair value, to 2,955.25.
The Labor Department reported Thursday that weekly initial jobless claims dropped by 4,000 to 323,000 in the week ended May 4 from an upwardly-revised 327,000 the prior week. The four-week moving average on initial claims was 336,750, a decrease of 6,250 from the previous week's 343,000.
Continuing claims fell 27,000 to 3.005 million in the week ended April 27 from an upwardly-revised 3.032 million the preceding week.
Economists, on average, were expecting initial claims of 335,000 and continuing claims of 3.02 million.
At 10 a.m. EDT, the Census Bureau is predicted to say that wholesale inventories rose 0.3% in March after declining 0.3% in February.
Green Mountain Coffee Roasters
Revenue in the quarter rose 14% to $1 billion.