Stocks were headed for an opening bounce on Monday, with investors scooping up shares beaten down in last week's selloff, while a report that Brocade Communications Systems Inc
Before the bell, Brocade shares rose 15 percent to $8.80 after the Wall Street Journal reported the data storage equipment maker has put itself on the selling block, citing people familiar with the matter.
The Journal said Oracle Corp
Monday's economic diary is light, with the Institute for Supply Management September reading on the vast services sector due at 10 a.m. EDT. Economists forecast a reading of 50.0 versus 48.4 in August, according to a Reuters survey.
S&P 500 futures rose 2.70 points and were 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 climbed 23 points and Nasdaq 100 futures jumped 7.25 points.
I suspect we're probably seeing some bargain hunting before the earnings season kicks off, said Peter Cardillo, chief market economist at Avalon Partners in New York. We're probably halfway through this pullback that we've encountered over the last few weeks.
After rallying nearly 60 percent from March through late September, the benchmark S&P 500 index <.SPX> capped a four-day losing streak on Friday. It has fallen more than 4 percent from its peak, weighed by concerns about the strength of the economic recovery.
Last week's top casualties included financials, industrial and technology shares.
In other M&A news, Prudential Financial Inc
Major equity markets were little-changed in Europe on Monday.
Bank of America Corp
In other banking news, Goldman Sachs raised its view on the U.S. large-cap bank sector to attractive from neutral. The brokerage raised Wells Fargo & Co
(Reporting by Ellis Mnyandu; editing by Jeffrey Benkoe)