Pre-Market Update – Gapping Stocks ( GENZ, CSCO, MCD, NBL, DIS )

Published on Monday, 30 August 2010 07:44 Written by Christian Paolinetti

New York, Aug 30^th (TradersHuddle.com) – The market is indicating a pretty much flat open with US Stock futures trading fractionally lower this morning. Investors are looking to end the sluggish summer and start a new month with a positive note, which at least is being materialized in the latest M&A news.

Here are some notable stocks in Pre-Market action.

Genzyme (NASDAQ:GENZ) is trading close to 4% higher in pre-market action, after Sanofi-Aventis announced Sunday  its $18.5 billion, $69-per-share cash offer for Genzyme Corp in a bid to rouse shareholders after failing to engage the U.S. biotechnology company in merger talks. Genzyme is trading higher than the $69-per-share offer, as investors are betting that Genzyme board will seek higher a higher offer.

Cisco (NASDAQ:CSCO) has pare its gains in today’s pre-market as its only trading fractionally higher. This after an unconfirmed report that Cisco will be bidding for Skype, which is in the process of going public, according to TechCrunch, citing "one of our more reliable sources”. Cisco shares set a 52 week low last week at $20.36, which is now being used as the line in the sand for bulls looking for a bounce.

McDonald’s (NYSE:MCD) continues to outperform the market, as its momentum higher continues this morning with the stock trading higher in pre-market price action. McDonald’s will be opening at a new 52 week high very close to $75. Investors continue to flock into McDonald’s stock as the stock has shown good performance in a sluggish economy.

Noble Energy (NYSE:NBL) is trading higher in pre-market price action, with the stock close to 1% higher than its Friday close. There is no specific catalyst this morning, as the stock is just trading on technical levels, with this morning gap up breaking the 20 day moving average and setting up for a probable run to resistance at the 200 day moving area congestion.

Finally Walt Disney Co (NYSE:DIS) is trading flat this morning, in concert with today’s pre-market action. After investors don’t seem to mind the recent announcement of the company making progress in the dispute with Time Warner (NYSE:TWX) concerning their Disney's ABC-TV and ESPN channels. This dispute could result in a black out of ABC and ESPN channels on Time Warner cable systems, though the two sides now expect to reach a deal.