U.S. major averages started the Monday session mixed in line with the futures’ predictions. Stocks are largely driven by merger and acquisition deals and declining oil prices.
The business software Oracle is acquiring its rival Siebel Systems; the online auctioneer eBay is buying the Internet-telephone company Skype Technologies, and the financial services company Wachovia Corp. is acquiring the automobile finance company Westcorp.Crude-oil future slipped 43 cents to $63.70 a barrel.
There are very few earnings reports and no major economic data.

The Dow Jones industrial average is down 3.50 points, while the Nasdaq is up 1.67 points and the S&P is down 0.44 point.

Treasury yields are higher in the early going. The 10-year yield, which briefly ticked below 4% soon after Hurricane Katrina hit the Gulf coast, is up 3.7 basis points to 4.160%.

MOVERS AND SHAKERS

Siebel Systems (SEBL: chart) advanced 13.5% after Oracle Corp. (ORCL: chart) said it would buy the company for $3.6 billion. Oracle lost 1.3% while its German competitor SAP (SAP: chart) gain 0.65%.

eBay Inc. (EBAY: chart) dropped 0.9% after it agreed to aquire Skype Technologies SA for $2.6 billion in cash and stock and up to $1.5 billion in incentives.

Wachovia Corp. (WB: chart) could gain in early dealings due to its $3.91 billion stock acquistion of Westcorp (WES: chart) that would increase earnings in the second year after the purchase. Westcorp owns 84% of WFS Financial (WFSI: chart) and Wachovia bought the rest 16% of the company. Wachovia jumped 0.55%, Westcorp was up 0.75% while WFS Financial climbed 0.15%.

Delta Air Lines (DAL: chart) was down 23% due to the rumours about a bankruptcy protection as early as Thursday.

Northwest Airlines Corp. (NWAC: chart) are expected to rise after the company ended talks with its striking mechanics on Sunday without an agreement. The company lost 4 cents on Friday.

Citigroup Inc. (C: chart) was 1.4% higher after the bank was upgraded to overweight from neutral by Prudential.

ECONOMIC NEWS

No major economic news release is expected today.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed the trading session in the positive territory with the Nikkei rising to a new four-year high of 1.6% after the general election victory of Prime Minister Junichiro Koizumi’s LDP and on better-than-anticipated GDP data. In the regional markets, South Korea’s Kospi rose 0.5%, Singapore Strait Times gained 0.75%, and Hong Kong’s Hang Seng added 0.2%. In currency markets the dollar bought 109.78 yen.

European stocks gained in mid-day dealings on strong U.S. markets close Friday, oil prices below $65 a barrel, weak euro and deal news from the insurance and utility sector. The German DAX 30 added 0.4%, the French CAC 40 rose 0.4%, and London’s FTSE 100 advanced 0.2%. The euro declined 0.7% to trade at $1.232.

ENERGY, METALS, CURRENCIES

Oil prices hover above $64 a barrel on slow recovery of U.S. oil refineries and signs of slowing world demand growth. Light sweet crude October delivery added 8 cents to trade at $64.16 a barrel. London Brent gained 4 cents to $62.88.

Gold prices climb to a 17-year high on uncertainty with the dollar and interest rates. In London the precious metal traded at $449.00 per troy ounce, up from $448.00.

The U.S. dollar advanced against its major counterparts. The euro fell ahead of national elections in Germany. The European currency traded at %$1.2304, down from $1.2420. The Dollar bought 109.87yen, up from 109.73. The British pound was quoted at 41.8271, down from $1.8392.

EARNINGS NEWS

Lowrance Electronics, Inc., (LEIX: chart) telecommunication company, reported a dividend of 30 cents per share on record 4Q results for fiscal 2005, with 59% sales increase compared to the same period last year.