* Chevron deal lifts energy sector
* Euro erases losses, commodities firm
* Futures up: S&P 1.9 pts, Dow 26 pts, Nasdaq 7.5 pts
* For up-to-the-minute market news see []
NEW YORK, Nov 9 (Reuters) - U.S. stock index futures edged
higher on Tuesday as the euro erased losses against the dollar
and commodity prices rose, while a Chevron deal to buy a
company to grab a stake in the fast-growing Marcellus shale
fields lifted the energy sector.
Shares in Atlas Energy Inc <ATLS.O> jumped 36 percent to
$43.03 in premarket trade after Chevron Corp <CVX.N> said it
will buy the U.S. natural gas producer for $4.3 billion. News
of the deal lifted other energy companies. Cabot Oil & Gas Corp
<COG.N> rose 6 percent to $34.50. For details, see
[]
Yahoo Inc <YHOO.O> jumped 5 percent to $17.29 premarket
after a report it may be a takeout target. Jack Ma, founder of
Alibaba Group, has been approached by a group of private equity
investors to gauge his interest in taking part in a bid to buy
Yahoo, a source said. []
"The real drivers in the market place going forward are the
kind of chatter that comes up about M&A," said Arthur Hogan,
chief market analyst at Jefferies & Co in Boston.
Although looking to extend a recent rally, the S&P 500
faces resistance around 1,228, which would retrace 61.8 percent
of the decline between its highs in 2007 and the 12-year low in
March 2009. This is one of the Fibonacci retracements that
chartists follow and can coincide with buying or selling
markers. The index closed at 1223.25 on Monday.
S&P 500 futures <SPc1> rose 1.9 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> gained 26
points, and Nasdaq 100 futures <NDc1> added 7.5 points.
The weaker dollar lifted commodities. U.S. crude oil
futures <CLc1> hit a two-year high, helped by bullish comments
from an industry body, while copper reached its highest since
mid-2008, also driven by falling inventories and supply
concerns.
"I definitely think we are going to have commodities
performing well if the dollar stays under pressure," said David
Lutz, managing director of trading at Stifel Nicolaus Capital
Markets in Baltimore.
Freeport-McMoRan Copper & Gold Inc <FCX.N> rose 2 percent
to $107.35, while Alcoa Inc <AA.N>, the biggest U.S. aluminum
producer, rose 0.9 percent $14.08.
Dean Foods Co <DF.N> fell 11 percent to $9.21 after the
company said recent "price concessions ... will continue to
impact year-over-year comparisons into 2011." Also, its chief
financial officer will resign.
The U.S. Federal Reserve's attempt to spur the economy by
buying $600 billion in Treasury debt has helped commodity
prices and led stocks to rally over the last two months.
Equities have also developed a close inverse relationship with
the dollar. For a Q&A on that relationship, see []
China signaled its intention on Tuesday to drain excess
cash from its financial system by unexpectedly raising the
yield on bills at a central bank auction and announcing new
rules to curb hot money inflows.
Wall Street retreated from a two-year high on Monday,
weighed down by financial stocks and a stronger dollar.
(Reporting by Edward Krudy; editing by Jeffrey Benkoe)
