U.S. stock futures were higher early Monday as a recovery from Friday's selloff seemed in the cards. Oil, which will continue to be in focus alleviated some pressure as it came off highs, and several deals also gave boost to stocks. The Federal Reserve is due to have a two-day policy meeting starting Tuesday. Most investors expect the Fed to keep its key federal funds rate unchanged but change the focus, or give more weight to inflation.U.S. stocks fell sharply Friday as oil prices climbed once again and financials continued to be in the headlines. The Dow industrials tumbled 220 points, or 1.83%, for a weekly loss of 3.7%. The Dow closed below 12,000 at 11,482.69, a three-moth low. The S&P 500 dropped nearly 25 points, or 1.85%, Friday and 3.1% last week. The Nasdaq Composite, with the same weekly decline, fell nearly 56 points, or 2.27%, Friday.
Without any economic readings out today, the market will undoubtedly focus on oil. Despite Saudi Arabia saying Sunday it will produce more crude this year if the market needs it, oil prices rose overnight as the promise was kept vague enough for any concrete relief.
In corporate news, two major deals have captured Wall Street's attention. Bunge Ltd. (NYSE: BG) will buy Corn Products International Inc. (NYSE: CPO) in a stock deal worth about $4.4 billion, the company said Monday. The deal puts a 31% premium over Corn Products' closing share price of $42.90 on Friday.
And Republic Services Inc. (NYSE: RSG) on Monday agreed to pay $6.07 billion in stock for Allied Waste Industries Inc. (NYSE: AW), combining the second- and third-largest players in the waste and environmental services industry. The deal puts nearly a 4% premium to Allied's closing stock price Friday.
The trouble with financials and the job cuts continue. Citigroup Inc. (NYSE: C) is preparing to cut thousands -- 10% of its 65,000 investment-banking workforce to be precise, according to The Wall Street Journal. Goldman Sachs (NYSE: GS) is also cutting 10% of its investment-banking division, according to the Financial Times Monday.
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