U.S. Stocks Seen Posting Losses on Cyprus Bailout

From MARKET TALK:

1033 GMT [Dow Jones] US stocks are expected to start lower Monday as the Cyprus bailout puts the euro crisis back into focus, says GFT Markets strategist Fawad Razaqzada. Calls the DJIA down 85 points to 14,429 and the S&P 500 down 14 points at 1547. Still, adds that markets are relatively composed. "We've already seen a significant recovery in futures markets over the last few hours," Razaqzada says. "Sentiment may not have been dented too badly for now, but any further jitters could see markets test fresh lows for the day." The NAHB housing market index prints at 1400 GMT. DJIA front-month futures contract currently down 0.6% at 14,350; S&P 500 futures contract 0.9% lower at 1539.30. ([e-mail])

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HOT STOCKS TO WATCH

Among the companies with shares expected to actively trade in Monday's session are Constellation Brands Inc. (STZ, STZB), Quicksilver Resources Inc. (KWK) and Suntech Power Holdings Co. (STP).

Shares of Constellation rose 3.1% after hours to $47.17 on the news that Anheuser-Busch InBev N.V. (BUD, ABI.BT), Mexico's Grupo Modelo S.A.B. (GPMCY, GMODELO.MX) and the U.S. Justice Department asked a federal court Friday to allow more time for settlement talks that could resolve a government antitrust lawsuit challenging the companies' planned merger. In a revised deal reached after the Justice Department sued to block the original deal in late January, AB InBev offered to sell an additional $2.9 billion of assets to Constellation in a bid to rescue a proposed takeover of Modelo, and agreed to sell Modelo's Piedras Negras brewery in Mexico to Constellation. Constellation also is involved in the settlement talks.

Quicksilver said it will restate its financial results for the first three quarters of 2012, due to errors related to its accounting for derivatives. Shares rose 2.5% to $2.84 in after-hours trading, as the restatement is expected to result in higher income for the past year.

Suntech said it didn't make a required payment on $541 million of bonds that matured Friday. It was unclear what the company's plans were for repaying investors, or whether a bankruptcy filing might be in the works. Suntech shares jumped 5.7% to 74 cents after hours Friday.

Watchlist:

Boeing Co. (BA) has picked General Electric Co. (GE) as the sole supplier of engines for its 777X twin-aisle jet, expected to launch near the end of the decade.

Oppenheimer Holdings Inc. (OPY) has accused Canadian Imperial Bank of Commerce (CM, CM.T) of failing to fulfill its contractual obligations related to the sale of CIBC's U.S. capital markets business to Oppenheimer in January 2008.

Write to Nathalie Tadena at [e-mail]

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