* Bond markets closed for holiday, seen damping stocks
* Transocean reaches deal with Icahn over dividend
* ViroPharma shares soar, to be acquired by Shire for $4.2
* Indexes mixed: Dow up 6 pts; S&P up 0.2 pt; Nasdaq down
By Angela Moon
NEW YORK, Nov 11 Wall Street was set for a flat
open on Monday as investors took a breather after the Dow and
the S&P 500 indexes rose five weeks in a row, while trading
volume was likely to be quiet due to the Veterans Day holiday.
While the overall market has been on the rise, technology
and small cap stocks showed relative weakness in recent weeks.
The S&P 500 rose more than 0.5 percent for the week, the Nasdaq
lost 0.1 percent. The Russell 2000 index of mid-
and small cap stocks rose 0.4 percent last week.
"Should technology take the reins and move above here, that
will likely be the catalyst that leads the S&P 500 to new
all-time highs." said Bryan Sapp, senior trading analyst at
Schaeffer's Investment Research in Cincinnati, Ohio.
The Dow set a record and the S&P 500 benchmark index rose on
Friday after an unexpectedly strong payrolls report, supporting
the view the U.S. economy is stronger than previously thought.
But some investors are also concerned that the solid jobs
report could prompt the U.S. Federal Reserve to start tapering
its stimulus efforts earlier than expected. The market will look
for more clues on Fed policy when Janet Yellen, nominated by
President Barack Obama to succeed Fed Chairman Ben Bernanke,
appears before the Senate Banking Committee on Thursday.
S&P 500 futures rose 0.4 point and were slightly
higher than 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 6 points while Nasdaq 100 futures fell 1.75
U.S. government offices and bond markets are closed on
Monday for Veterans Day and no major data or earnings are
European shares edged higher as investors considered the
implications of a strong U.S. jobs report. The FTSEurofirst 300
rose 0.1 percent at 1,296.86 points while the euro
zone's blue-chip Euro STOXX 50 firmed 0.2 percent to
Transocean Ltd shares rose 2 percent in premarket
trade after the company said it reached an agreement with Carl
Icahn in which the offshore driller will pay a $3 per share
dividend and reduce the number of board seats.
Tesla Motors Inc shares were up 1.9 percent in
premarket trade after the stock suffered its worst week since
Apple Inc is developing new iPhone designs,
including bigger screens with curved glass and enhanced sensors
that can detect different levels of pressure, Bloomberg reported
on Sunday, citing an unnamed person familiar with the plans. The
stock was up 0.3 percent in premarket trade.
London-listed Shire is buying ViroPharma
for $4.2 billion, attracted by a pipeline of potentially
lucrative drugs to treat rare diseases. ViroPharma shares jumped
26 percent in premarket trade.