The building in Muhaisnah 4 had suffered structural damage last week and has been sealed off as authorities conduct investigations
Futures also erased earlier losses following remarks by Atlanta Federal President Dennis Lockhart who said inflation albeit "high and worrisome" should moderate over the rest of the year and into next year. ID:nWEQ000135
Lockhart's inflation view "coupled with the durable goods report and other signs of economic activities that are better than expected...are very good for the market," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.
However, the gains in futures were curbed by lingering worries about the battered banking sector and crude prices rising for a third straight day.
Concerns over more bank failures put downward pressure on financial shares after the Federal Deposit Insurance Corp. said the number of troubled U.S. banks rose 30 percent in the second quarter to its highest level in five years.
Oil prices climbed on jitters about Tropical Storm Gustav, expected to reach hurricane intensity by Thursday and possibly threatening crude and natural gas production in the Gulf of Mexico.
If Gustav were to hurt gas output to the extent as Hurricane Katrina, "that's going cause inflationary pressure," said Tom Schrader, managing director of U.S. equity trading at Stifel Nicolaus Capital Markets in Baltimore.
S&P 500 futures were up 1.50 points and slightly above 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 advanced 12 points points and Nasdaq 100 futures edged up 0.5 points.
Not all the news pertaining to the financial sector was gloomy.
Fannie Mae and Freddie Mac rose for a third consecutive session on hopes that a possible government rescue of the two mortgage finance companies would not wipe out shareholders, traders said.
"People are buying into the notion of a bailout. There's very little on the downside" for them, said Knight's Kenny.
Lehman Brothers, which has posted $7 billion in write-downs and losses, has asked three private equity firms to remain in the bidding for its asset management arm even though it has yet to decide whether to sell it, the Financial Times reported. Lehman shares were up 1 percent before the bell.
Singapore's Temasek Holdings has received U.S. antitrust approval to raise its stake in the U.S. investment bank to as much as 14 percent, Bloomberg reported, without citing sources. Merrill shares were up 1.7 percent in premarket trading.
Turning to the pharmaceutical sector, the diabetes drug Byetta sold by Amylin Pharmaceuticals Inc. and Eli Lilly & Co.
was linked to four more deaths in patients with pancreatitis, adding to two deaths announced by federal regulators last week.
Amylin shares fell more than 10 percent ahead of the bell. Lilly was not active.
The building in Muhaisnah 4 had suffered structural damage last week and has been sealed off as authorities conduct investigations
Al Ain, which knocked out Cristiano Ronaldo's Al Nassr in the quarterfinals, reached the final for the first time since 2016
Defeat leaves Chelsea still in ninth, three points adrift of the European places
Liverpool left some key players out of their starting line-up for Sunday's 3-1 win at Fulham
Stoinis hit a match-winning unbeaten 124 for Lucknow Super Giants against Chennai Super Kings
It was Stoinis' first IPL century and his second in T20 cricket
Company’s showcase includes demonstrations of Copilot for Security
The museum to offer visitors the chance to take part in dance, yoga and work-out sessions while gazing upon paintings and sculptures