* Yahoo gains after WSJ reports AOL eyes tie-up
* Intel up after stock raised to "buy"
* Futures dip: S&P 3.2 pts, Dow 14 pts, Nasdaq 6.25 pts (Adds analyst quote, updates market activity)
By Edward Krudy
NEW YORK, Nov 8 (Reuters) - Wall Street was set to ease from recent highs on Monday as a rise in the U.S. dollar weighed on commodity prices and looked set to pressure natural resource stocks.
The dollar has traded in a strong inverse relationship to U.S. equities recently. An unwinding of dollar short positions that began after solid U.S. jobs data last Friday gathered pace, while concerns over euro zone debt hurt the euro. The dollar rose 0.6 percent against a basket of currencies..
Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois, pointed to light volume in the futures trading. "I don't think that (the strong dollar) is a strong enough driver to dominate trading," he said. "I think there will be somewhat of a reversal as the day goes on."
Metals prices slipped as the dollar rose, while oil futures fell 0.4 percent toward $86 a barrel, easing from two-year highs earlier in the session. Gold slipped for the first time in three sessions but remained near record highs.
Shares of Alcoa Inc, the largest U.S. aluminum producer, fell 0.7 percent to $13.90 in premarket trade, while Exxon Mobil Corp was down 0.3 percent to $69.80.
S&P 500 futures fell 3.2 points and were below 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 fell 14 points, and Nasdaq 100 futures lost 6.25 points.
U.S. stocks have risen for five straight weeks and surpassed levels not seen since before the bankruptcy of Lehman Brothers. The rally has been helped by Republican gains in the U.S. midterm elections and the U.S. Federal Reserve's plan to buy $600 billion of government debt.
In corporate news, AOL Inc is exploring strategic options, which include a possible tie-up with Yahoo Inc, and has retained financial advisers to do so, the Wall Street Journal reported, citing unnamed sources. Yahoo's shares rose 1.4 percent to $16.50.
McDonald's Corp said global October sales at established restaurants rose 6.5 percent, helped by new products, its dollar menu and renovations. The shares fell 0.6 percent to $78.80.
Intel Corp added 1.2 percent to $21.50 before the bell after UBS raised the stock's rating to "buy" from "neutral" and estimated the sector will see another couple of quarters of inventory adjustments globally.
Saudi Arabian Airlines ordered 12 Boeing Co 777-300 "Extended Range" planes for $3.3 billion, in addition to eight 787 Dreamliners, Boeing said Sunday. However, Boeing's shares traded down 1.4 percent to $70.29 premarket.
The S&P 500 faces strong resistance at around 1,228, a key retracement of the benchmark's slide from its historic high in 2007 to the 12-year low in March 2009. The S&P closed at 1225.85 on Friday, a new two-year high.