ConocoPhillips $9.5B . Royal Dutch agreed to buy Shell’s Permian Basin assets for
we store Futures pointed to higher openness on Tuesday as key averages saw a bounce back following health concerns ChinaUncertainty over the real estate sector and Fed policy led to the sharpest fall in months.
The Dow Jones Industrial Average futures rose 290 points, or 0.86%, while the S&P 500 futures and Nasdaq 100 futures rose 0.73% and 0.71%, respectively.
The early gains came a day after the Dow’s steepest fall in two months. Both the S&P and Nasdaq suffered their biggest losses since May on Monday.
Investors continue to monitor whether Beijing will take steps to save the beleaguered Chinese property developer Evergrande. A report by S&P Global Ratings said such action would only take place if there is a “far-reaching transition that causes many major developers to fail and pose systemic risks to the economy.”
Closer to home, the Federal Reserve begins its two-day policy meeting. Investors will be paying close attention to Wednesday’s decision, which could pave the way for the central bank to start reducing its asset purchases.
Among stocks, industrialists including Caterpillar Inc and Freeport-McMoRan were among the top gainers.
Johnson & Johnson said a second shot of its COVID-19 vaccine was given about two months later, increasing its effectiveness from 70% to 94%.
In the deals, US Bancorp agreed to buy the personal banking division of the US business of Japanese lender MUFG Union Bank for $8 billion in cash and stock. The deal is expected to close by the end of June.
ConocoPhillips said it will buy Royal Dutch Shell’s assets in the Permian Basin for $9.5 billion in cash.
In earnings, Lennar Corp. reported quarterly results that fell short of Wall Street estimates due to supply chain disruptions caused by COVID-19. The homebuilder’s guidance for deliveries in the current quarter fell short of analysts’ expectations.
Uber Inc raised its gross booking forecast for the current quarter and said it could turn a profit earlier than previously thought.
In commodities, West Texas Intermediate crude jumped 83 cents to $71.12 a barrel and gold by $.260 to $1,766.40 an ounce.
Foreign markets remained mostly higher.
European markets rallied across the board, with France’s CAC 40 up 1.46%, Germany’s DAX 30 up 1.44% and Britain’s FTSE 100 up 1.19%.
In Asia, Japan’s Nikkei 225 lost 2.17% and Hong Kong’s Hang Seng index lost 0.51%. China’s Shanghai Composite remained closed for the holiday.