In other deal news, Mylan Laboratories (MYL: chart) fell 11% after it agreed to pay $6.7 billion for the generic drug-making arm of Merck KGaA. Cardinal Health (CAH: chart) said it would pay $1.5 billion for Viasys Healthcare (VAS: chart) in a deal representing a 35% premium to Friday''s close. Dow Jones industrial average rose 48.68, or 0.37%, to 13,374.90. The Standard & Poor''s 500 index was up 4.33, or 0.29%, at 1,510.18, and the Nasdaq composite index gained 6.25, or 0.24%, to 2,568.47. Bonds were little changed, as many investors stayed on the sidelines ahead of Tuesday''s heavy schedule of economic data. The yield on the benchmark 10-year Treasury note was at 4.67%, slightly lower than 4.68% late Friday.


9:00AM Stock futures pointed to a steady opening.
U.S. stock market futures were indicating a steady opening on Monday, reflecting cautiousness after Friday''s big rally sparked by hopes for rate cuts. Investors were also awaiting tomorrow''s release of Consumer Price Index for April, as well as data from the National Association of Home Builders.

Merger-and-acquisition activity attracted little attention in pre-market trading. DaimlerChrysler (DCX: chart) rose 3.7% after a private-equity fund agreed to buy 80.1% of its Chrysler Group for $7.4 billion. The Big Three automakers will also be in focus, with General Motors (GM: chart) rising 1.9% in pre-market trading and Ford Motor Co. (F: chart) gaining 3.6%. According to a report, Ford''''s founding family is planning to sell a controlling stake.

In other deal news, Mylan Laboratories (MYL: chart) fell 2.2% in the pre-open after it agreed to pay $6.7 billion for the generic drug-making arm of Merck KGaA. Further in M&A action, Cardinal Health (CAH: chart) said it would pay $1.5 billion, or $42.75 a share for Viasys Healthcare (VAS: chart) in a deal representing 35% premium to Friday''s close. S&P 500 futures declined 1.6 points at 1,510.60 and Nasdaq 100 futures eased 0.75 of a point at 1,909.75. Dow industrial futures declined 9 points.


8:45AM Asian markets close higher Monday on Japanese exporters.

Asian markets ended mostly higher Monday. The Nikkei 225 index in Tokyo closed 0.7% higher to 17,677.94. Among the main advancers in Japan, Toyota added 4.7%, Eisai surged 13% after announcing Friday that it won a patent infringement lawsuit in the U.S. over its Aciphex ulcer treatment. Sanyo Electric stated it will strengthen its product quality control and implied its solar and battery operations will be a major focus this fiscal year. Sanyo Electric ended flat in Tokyo.

Hong Kong Hang Seng ended 2.5% higher to 20,979.24, after the Chinese government announced it was allowing banks for the first time to invest in overseas stocks and structured equity products. HSBC Holdings and its 62%-owned Hang Seng Bank have issued internal memos setting a target of a 10% increase in pretax operating profit this year. HSBC rose 1.3% in Hong Kong.

Shanghai Composite Index gained 0.6% to end at 4,046.39. Australian S&P/ASX 200 closed 0.8% higher to 6,345.10, Singapore Straits Times Index gained 1.6% to 3,501.10 and Taiwan Weighted index closed nearly flat at 8,030.56. South Korean Kospi finished 0.1% to 1,605.77.


8:15AM DaimlerChrysler agreed to sell 80% of Chrysler for $7.4 billion.
DaimlerChrysler AG (DCX: chart) agreed to sell 80.1% of its struggling Chrysler Group to private equity firm Cerberus Capital Management LP in a deal worth $7.4 billion. The deal is a reversal of the 1998 $36 billion merger of Chrysler with Daimler-Benz AG that aimed at creating a global auto giant. The automaker said that an affiliate of Cerberus will hold the majority stake in a new Chrysler Holding LLC while DaimlerChrysler will keep a 19.9% stake. Chrysler would keep its heavy obligations for pensions and health care costs.

DaimlerChrysler CEO said that the two companies would continue to work together, reaping the mutual benefits of cooperation. The deal is expected to complete by Q3 and that it would reduce its overall profit by some $4.05 billion to $5.39 billion for 2007. As for the name of the new company, Daimler AG will replace DaimlerChrysler. The deal is subject to shareholders’ approval. The company''s stock rose more than 7% in European trading and gained 3.7% in U.S. pre-market trade.


8:00AM NY-7:00PM Mumbai Sensex surges on Monday on a rally in SBI, Reliance.

The Sensex Index closed on Monday 169.70 points, or 1.23%, higher at 13,965.86.

The market-breadth in the session was strong with three advancers for every two decliners. For 1,641 stocks that advanced, 916 declined and 85 remained unchanged. Of the 30 stocks in the Sensex, 21 advanced, while the rest declined. The turnover on BSE was Rs 4,117 crore compared to Rs 4,446.79 crore on Friday. On NSE, the turnover was Rs 8,472.51 crore compared to Rs 9,404.94 crore on Friday.

Economic news

The annual monsoon rains will arrive at Kerala a week early on May 24, but there is no guarantee farmers would benefit from their arrival ahead of schedule. The monsoon rain is crucial to the health of the nearly one trillion dollar economy of India as it determines farm output and subsequent rural demand for a range of consumer products.

The rupee reached last week nine-year peak on Monday, following gains in other Asian currencies against the dollar, with dealers trying to test the RBI resolve to curb inflation by limiting the rise of the rupee. The rupee advanced to 40.92 per dollar on Monday up 0.7% from the close on Friday.