After ending a recent winning streak last week, stocks may move back to the upside in early trading on Monday. The major index futures are currently pointing to a modestly higher open for the markets, with the Dow futures up by 15 points.
Optimism about further stimulus ahead of a speech by Federal Reserve Chairman Ben Bernanke later in the week may contribute to early strength on Wall Street. Nonetheless, trading activity is likely to be somewhat subdued amid a lack of any major U.S. economic data.
Apple (AAPL) may move higher in early trading, leading to some strength in the tech sector. Shares of Apple are up by 2.5 percent in pre-market trading.
The upward momentum for Apple comes after the iPad and iPhone maker was awarded more than $1 billion in damages in a patent infringement lawsuit against rival Samsung.
Shares of Dollar Thrifty (DTG) could also see early strength after the car rental company agreed to be acquired by rival Hertz Global (HTZ) in a deal valued at about $2.3 billion. The deal values Dollar Thrifty at $87.50 per share, an 8 percent premium to its closing price on Friday.
In other merger-and-acquisition news, M&T Bank (MTB) announced an agreement to acquire Hudson City Bancorp (HCBK) in a transaction valued at approximately $3.7 billion.
Under the terms of the deal, each Hudson City share will receive consideration valued at 0.08403 of an M&T share in the form of either M&T stock or cash.
Traders are also likely to keep an eye on developments regarding Tropical Storm Isaac, which is expected to strengthen into a hurricane before making landfall on the Gulf coast on Tuesday. The storm has led Republicans to postpone the start of their nominating convention in Tampa.
by RTT Staff Writer
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