* Facebook falls below IPO price of $38/share in premarket
* World leaders back Greece, vow to combat crisis
* Nasdaq revamps system after tech problems on Facebook
* Futures up: S&P 4.9 pts, Dow 62 pts, Nasdaq 12.75 pts
By Angela Moon
NEW YORK, May 21 Wall Street was set for a
higher open on Monday, rebounding from its worst weekly decline
for the year, on assurances that world powers want debt-laden
Greece to remain in the euro zone.
But investors doubted fast action would be taken on Greece
and also worried about a drop in Facebook's shares below their
IPO price .
On Saturday, G8 leaders stressed that their "imperative is
to promote growth and jobs" and gave verbal backing for Greece
to stay in the euro. But gains were limited as the pledge was
unlikely to herald quick new action from the region, meaning
more uncertainly for nervous financial markets.
Further limiting gains, Facebook Inc shares fell
below their initial public offering price of $38 a share in
premarket trading on Monday.
"The lack of stabilization in our technical indicators
suggests it is too early to anticipate a tactical buying
opportunity in the S&P 500," said Ari H. Wald, analyst at Brown
Brothers Harriman & Co.
"In our view, any near-term oversold bounce is likely to be
a countertrend and face resistance at 1,360 (on the S&P 500),"
Facebook shares lost 4.1 percent to $36.63. The stock
was expected to face tough trading this week if lead underwriter
Morgan Stanley stops supporting the stock and managers lower
down in the IPO book who were hoping for an early surge decide
to get out before going underwater.
Yahoo will be in the spotlight after news that
Chinese Internet entrepreneur Jack Ma is buying back up to half
of a 40 percent stake in his Alibaba Group from Yahoo for $7.1
billion, in a deal that moves the Chinese e-commerce leader
closer to a public listing. The stock was up 4.7 percent at
$16.15 in premarket trade.
The Nasdaq is planning to revamp its systems for
handling stock offerings after acknowledging that technology
problems had affected trading in millions of newly issued
Facebook shares on Friday, the Wall Street Journal reported.
The U.S. economy needs "measured" efforts to bolster growth,
but the central bank should focus on improving its
communications because circumstances do not warrant further bond
buying at this time, said Atlanta Federal Reserve Bank President
Wanda Group, one of China's largest theater owners, has
agreed to buy AMC Entertainment in a deal valued at $2.6
billion, creating the world's biggest cinema operator, the
Lowe's Cos Inc, the world's second-largest home
improvement chain, reported a higher-than-expected quarterly
profit on strong spring sales. The company's
shares fell 5.2 percent to $27.00 in premarket trade.
S&P 500 futures rose 4.9 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 rose 62
points, and Nasdaq 100 futures added 12.75 points.
The chief executives of Apple Inc and Samsung
Electronics Co Ltd come face to face on Monday in
court-directed mediation in the United States over a dispute in
which the iPhone maker claims the Korean firm has "slavishly"
copied some of its products.