U.S. stock index futures pointed to a higher open on Monday after Schlumberger agreed to buy Smith International for $11.34 billion in stock and Lowe's Co. posted better-than-expected earnings, indicating increased confidence among corporate managers and consumers.
The market likes to know that there is value being created out there and things are worth more then what they were, said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co. in San Francisco. What you're looking at is another situation in which we have a market that's saying yes, there's still value in this market.
Schlumberger's shares fell 5.2 percent to $60.58 in premarket trade while Smith International rose 7.4 percent to $40.50.
Lowe's shares rose 2.5 percent to $23.71 in premarket trade.
S&P 500 futures rose 4.30 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 rose 36 points and Nasdaq 100 futures added 9.25 points.
Last week stocks closed out their best week this year. The benchmark S&P 500 has trimmed its losses since its January 19 peak to 3.6 percent decline through Friday. The index fell as much as 8 percent through February 8.
Healthcare stocks, which have been a wildcard for the market this year, are expected to come in focus today as President Barack Obama pitches his bid to revamp the U.S. healthcare system as a way to control big insurance company rate increases.
Obama will release his healthcare plan on Monday, the White House said.
(Reporting by Edward Krudy; Editing by Theodore d'Afflisio)