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US STOCKS-Futures higher after recent losses, M&A talk helps

Published 08/23/2010, 07:12 AM
Updated 08/23/2010, 07:16 AM

* Campbell may bid for United Biscuits: report

* 3M CEO: may double acquisition money spent in 2010

* Futures up: Dow 44 pts, S&P 500 6.2 pts, Nasdaq 12.5 pts

By Ryan Vlastelica

NEW YORK, Aug 23 (Reuters) - U.S. stock index futures were higher on Monday, following two straight weeks of losses for the S&P and Dow as positive sentiment was lifted by signs that recent merger and acquisition activity would not abate.

* According to the London-based Sunday Times, Campbell Soup Co may make a $2.3 billion break-up bid for Britain's United Biscuits. Campbell shares closed Friday at $36.64. For details, see

* George Buckley, the chief executive officer of 3M Co, said the Dow component may spend about $2 billion on acquisitions in 2010, twice its previous estimate.

* The move follows a recent M&A deal from Intel Corp, which last week moved to acquire software maker McAfee Inc for $7.7 billion, in the biggest of a string of M&A deals last week in the United States.

* Kicking off what is expected to be a light week for trading, there are no S&P 500 companies scheduled to report quarterly results on Monday, and no major economic indicators.

* Medtronic Inc and Big Lots Inc are on tap to report tomorrow. Existing home sales for July will also be released.

* S&P 500 futures rose 6.2 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 44 points, and Nasdaq 100 futures rose 12.5 points.

* October crude futures edged slightly higher to $74.12 per barrel, though prices were close to last week's six-week lows on bulging inventories.

* Concerns about the strength of the recovery have intensified in recent weeks, with weak economic data adding to the cautious tone and depressing trading volume levels.

* U.S. stocks slipped on Friday and the S&P 500 and Dow fell for a second straight week on persistent concerns the recovery has tapered off. For the week, the S&P 500 was down 0.7 percent and the Dow slipped 0.9 percent, while the Nasdaq gained 0.3 percent on some positive outlooks in tech shares.

* Even so, major indexes pared losses from Friday's session lows as some investors homed in on positive outlooks in the tech sector and used recent M&A news as an excuse for late-day buying. ( Editing by W Simon )

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