Stock futures were driven lower on Friday morning. Domestically market participants have put on their blast goggles and buckled their seat belts as the sequester enters its final countdown. International economic indicators released this morning showed that the downturn in European manufacturing continued relatively unabated in February, and Chinese manufacturing output shrank month over month, though remained barely in growth territory.
U.S. futures at 9:00 a.m.: DJIA: -0.33%, S&P 500: -0.45%, NASDAQ: -0.40%.
Here’s what’s buzzing on Friday morning:
Herbalife (NYSE:HLF) stock bumped around after hours, edging into negative territory just ahead of the opening bell in New York. Investors are digesting the news that, for better or worse, activist investor Carl Icahn will be allowed increase his stake to as much as 25 percent. Icahn has gained the authority to nominate two additional members to the board.
Best Buy (NYSE:BBY) stock climbed over 6 percent on Friday morning following news that buyout talks with founder Richard Schulze ended. Reports indicate that Schulze and aligned private-equity investors would seek out three board seats in exchange for acquiring a minority position, instead. Schulze’s previous bid of $24 to $26 per share was denied. The stock closed Thursday at $16.41 per share.
Salesforce.com (NYSE:CRM) stock climbed as much as 5 percent following strong quarterly results. The sales- and marketing-software company posted a 35 percent increase in full-year revenue to $3.05 billion, and issued FY2014 guidance in a range between $3.82 billion and $3.87 billion. Sales for the quarter hit $835 million, driven by its cloud-based services.
Gap (NYSE:GPS) stock climbed about 3.5 percent after reporting fourth-quarter and full-year results after the closing bell on Wednesday. Net sales for the quarter grew 10.5 percent to $4.73 billion, while net income increased 65.9 percent, rising from $0.44 to $0.73 per diluted share. For the year, net sales increased 8.3 percent to $15.7 billion, while net income increased 49.4 percent to $2.33 per diluted share.
MetroPCS (NYSE:PCS) has hit a roadblock in its bid to merge with T-Mobile. Paulson & Co., the former’s largest shareholder with a 9.9 percent stake, is joining other smaller players in a proxy battle against the deal. Paulson recognizes that a merger would have strategic benefits, but the firm has overriding concerns about the debt burden of the combined entity.
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