* Ireland doesn't rule out need for aid
* Caterpillar to buy Bucyrus for $8.6 billion
* Futures up: Dow 28 pts, S&P 4.9 pts, Nasdaq 11.5 pts (Adds quote, details on Lowe's earnings, Caterpillar-Bucyrus deal)
By Ryan Vlastelica
NEW YORK, Nov 15 (Reuters) - U.S. stock index futures rose on Monday after a steep selloff in the previous session, helped by M&A activity, though financial stress in Ireland threatened to weigh on the market.
Ireland didn't rule out the possibility it may have to turn to Europe for help in dealing with its debt crisis on Sunday but said no application had been made for assistance yet. For details, see
Concerns over euro zone sovereign debt has pressured equities in recent weeks along with persistent concerns that China may raise interest rates. Offsetting that was stronger-than-expected growth data from Japan for the July to September period.
"Markets, after the selloff last week, are in a push-and-pull situation, with the stronger growth out of Japan on one hand, but the persistent problems in Europe on the other," said Oliver Pursche, president at Gary Goldberg Financial Services in Suffern, New York.
Caterpillar Inc agreed to buy mining equipment maker Bucyrus International Inc for $8.6 billion, sending Bucyrus' shares up 30 percent to $90.60 in premarket trading. Caterpillar, a Dow component, slid 1.3 percent to $80.
Separately, EMC Corp agreed to buy Isilon Systems Inc, the data storage company, for $2.25 billion.
Economic indicators on tap later Monday include October retail sales, which are seen rising 0.4 percent, the same as in the previous month, along with September business inventory data and the November Empire State survey. Inventories are seen rising from the previous month, while the N.Y. survey is seen coming in at 14, down from last month's 15.73.
Pursche said investors were awaiting the retail data for direction, adding that while he was optimistic about the report, he was still cautious and expected a slow retail recovery.
S&P 500 futures rose 4.9 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 added 28 points, and Nasdaq 100 futures were up 11.5 points.
The S&P 500 dipped below its 20-day moving average on Friday for the first time since Sept. 1, but managed to close above it in a sign the level -- currently just above 1,194 -- could provide strong technical support.
Lowe's Cos Inc reported third-quarter profit that beat expectations by a penny, but sales missed estimates.
The dollar index rose 0.5 percent, hitting a six-week high, lifted by higher U.S. Treasury yields. Crude oil rose 0.8 percent, recovering from heavy selling on Friday.
Also in deal news, BHP Billiton scrapped its $39 billion bid for Canada's Potash Corp on Sunday after regulators rejected the deal. U.S.-listed shares of Potash slid 3.6 percent to $134.82 in premarket trading.
ArcelorMittal SA is interested in buying Massey Energy Co, the Wall Street Journal reported.
The newspaper also reported that Takeda Pharmaceutical Co Ltd had explored whether it wanted to pursue a deal for Genzyme Corp but was unlikely to do so.
Richmond Federal Reserve President Jeffrey Lacker said Sunday he was opposed to the central bank's last round of monetary easing, believing the policy was potentially dangerous and likely ineffective.
Wall Street ended a five-week winning streak on Friday as the threat of rising interest rates in China prompted investors to book profits and reassess bullish positions in equities.