Bidding for a rally

NEW YORK (CNNMoney.com) -- Stocks could get a lift from reports of mergers and a rebounding dollar at the start of the week that will also bring a Federal Reserve meeting and a key inflation reading.

Stock futures, which predict the direction of stocks at the open, were higher in early trading, as the dollar rose against the euro and the yen.

Airline reservation service Sabre Holdings (Charts), the owner of both Travelocity Web site and the computer reservation used by travel agent and airlines, could be sold this week for a premium to its $3.75 billion market value, according to published reports.

Casino operator Harrah's Entertainment (Charts) plans to meet Wednesday to consider all buyout offers presented to the gambling giant, also according to published reports.

Wire service Reuters reported that Europe's biggest medical device maker, Smith & Nephew (Charts) is close to bidding about $11 billion for U.S. rival Biomet (Charts), citing sources familiar with the situation.

And Home Depot (Charts) is preparing to spend $100 million on a majority stake in Chinese chain HomeWay in a deal that will be unveiled in China this week, the Financial Times reported Monday.

The Sunday Times of London reported that bidding for Ford Motor (Charts) unit Aston Martin had been particularly fierce and there was a strong chance that it could sell for more than $1.2 billion.

The Federal Reserve meets Tuesday, with investors expecting interest rates to remain unchanged, but eager to see the central bank's statement for clues about the direction of rates in the future. Friday will bring the federal government's key inflation measure, the Consumer Price Index report.

Treasury prices were higher in early trading Monday, taking the yield on the 10-year note to 4.54 percent from 4.55 percent late Friday.

Oil was lower in early trading on strong inventory expectations. U.S. crude fell 36 cents to $61.67 a barrel in electronic trading. Brent crude futures lost 23 cents to $61.97 in London.

In overseas markets, stocks in Asia closed mostly higher, while stocks in Europe also were higher in early trading.

More market news and futures ahead of the U.S. open

Gearing up for the Fed