WASHINGTON (dpa-AFX) - Stocks may move modestly higher in early trading on Monday, extending the strong upward move seen last week. The major index futures are currently pointing to a slightly higher open for the markets, with the Dow futures up by 16 points.
New on the merger-and-acquisition front may generate some early buying interest, although trading activity is likely to be subdued ahead of key events later this week.
The Federal Reserve's monetary policy announcement is likely to be in the spotlight, with the central bank widely expected to cut interest rates by at least 25 basis points on Wednesday.
Assuming the Fed cuts rates as expected, traders are likely to pay close attention to accompanying statement for clues about the potential for future rate cuts.
The Labor Department is also due to release it closely watched monthly jobs report, which could also have a significant impact on the outlook for rates.
Employment is expected to climb by 170,000 jobs in July after jumping by a much bigger than expected 224,000 jobs in June, while the unemployment rate is expected to hold at 3.7 percent.
Reports on personal income and spending, consumer confidence, pending home sales, manufacturing activity and the U.S. trade deficit are also likely to attract attention in the coming days.
On the M&A front, shares of Mylan (MYL) are moving sharply higher in pre-market trading after the generic drug company announced a merger with Pfizer's (PFE) off-patent drug business.
Genomic Health (GHDX) is also likely to see initial strength after agreeing to be acquired by cancer diagnostics company Exact Sciences (EXAS) for $2.8 billion in cash and stock.
Stocks moved mostly higher over the course of the trading day on Friday, rebounding following the weakness seen on Thursday. With the turnaround, the Nasdaq and the S&P 500 reached new record closing highs.
The major averages all closed in positive territory, although the Nasdaq posted a standout gain amid strength in the tech sector. The Nasdaq surged up 91.67 points or 1.1 percent to 8,330.21, while the S&P 500 climbed 22.19 points or 0.7 percent to 3,025.86 and the Dow rose 51.47 points or 0.2 percent to 27,192.45.
For the week, the Nasdaq and the S&P 500 jumped by 2.3 percent and 1.7 percent, respectively, but the narrower Dow inched up by just 0.1 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's Nikkei 225 Index dipped by 0.2 percent, while Hong Kong's Hang Seng Index slumped by 1 percent.
Meanwhile, the major European markets have moved to the upside on the day. While the U.K.'s FTSE 100 Index has spiked by 1.9 percent, the French CAC 40 Index and the German DAX Index are both up by 0.2 percent.
In commodities trading, crude oil futures are inching up $0.03 to $56.23 a barrel after rising $0.18 to $56.20 a barrel last Friday. Meanwhile, an ounce of gold is trading at $1,420.60, up $1.30 from the previous session's close of $1,419.30. On Friday, gold rose $4.60.
On the currency front, the U.S. dollar is trading at 108.66 yen compared to the 108.68 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1125 compared to last Friday's $1.1128.
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