Stocks Set To Open Mixed to Higher
Stocks appeared headed mixed to higher Friday after the government reported the Producer Price Index
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0.3% in April, while retail sales were up by a stronger-than-expected 0.8% for
the month.
Drug maker Eli Lilly
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said several new drugs to be introduced over the next year will offset the
expected loss of sales of its blockbuster antidepressant Prozac as generic
versions come to market. Eli Lilly’s earnings growth may accelerate to “double
digit rates” in 2003, boosted by impotence drug Cialis, osteoporosis treatment
Forteo, as well as continuing growth of Zyprexa, Gemzar and diabetes medicine
Actos, chairman Sidney Taurel said.
Virgin Atlantic airline said it was
talking to Boeing
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said would help in its expansion plans. Virgin Atlantic said it expects to order
up to six of the planes, which can fly up to 20% faster than current passenger
airliners.
American International Group Inc. said
it will acquire American General for about $23 billion in stock, reinforcing
AIG’s domestic life insurance business and killing an earlier bid by British
insurance group Prudential Corp Plc.
Under the terms of the deal, American
General shareholders will receive $46 in AIG common stock as long as AIG’s
average stock price holds between $76.20 and $84.22 per share during the price
period. These terms are dependent upon AIG common stock according to an exchange
ratio based on the 10-day average price of AIG’s common stock three days prior
to closing.
Overseas, Bank of Japan Governor
Masaru Hayami said the central bank will continue its easy monetary policy. The
BOJ returned to a zero interest rate policy in March and vowed to continue it
until consumer prices stabilize near 0%.
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