NEW YORK (CNN/Money) - A continued slide in oil prices was poised to fuel an advance for stocks at Monday's open.

U.S. stock futures were up in early trading.

Oil prices fell below the $48 a barrel level in early trading, and while it was higher than that at 6 a.m. ET, it was still down from Friday levels.

The June light crude contract was off 58 cents to $48.09 a barrel in electronic trading, while the June contract for Brent crude fell 65 cents to $48.01.

Major markets in Asia closed lower Monday as the dollar gained on the yen. Major European markets were also lower in early trading.

Treasury prices were little changed, with the yield on the 10-year note at 4.12 percent. The dollar gained ground on the euro and the yen.

In corporate news, drugmaker and Dow component Pfizer (Research) announced it planned to file for FDA review of its new cancer drug Sutent after releasing a study over the weekend that showed improved survival and reduced tumor growth in patients with a type of stomach cancer.

The Wall Street Journal reported Monday that US Airways (Research) and America West (Research) hope to announce a merger later this week and are in advanced talks to raise as much as $400 million from potential investors and partners, including Air Canada (Research) and two hedge funds.

Aircraft maker Airbus Industrie could contribute a $250 million loan to the deal in return for agreement to buy one of its new commercial jets.

The Journal also reports that Qwest Communications (Research) could launch a new bid for MCI (Research) due to displeasure among some leading MCI shareholders over the company's accepting a $8.44 billion buyout from Verizon Communications (Research) over a $9.74 billion offer from Qwest.

In economic news, the Federal Reserve Bank of New York's Empire State index fell to a two-year low, to minus 11.11 in May. April was revised downward to plus 2.03.

According to economists surveyed by Briefing.com, the Empire State index was expected to be up to 11.

For a more detailed look at the markets before the open, click here.