Cautious start seen for stocks

NEW YORK (CNNMoney.com) -- U.S. stock futures were slightly stronger Monday, but inflation worries could start to take a toll on investors.

Stocks rallied last week after the Federal Reserve cut interest rates for the first time in more than four years. But enthusiasm could be dampened as investors face this week's heavy economic calendar.

A slew of reports will provide a clearer picture of the economic outlook. No major releases are slated for Monday, but reports on consumer confidence and existing home sales are on tap for Tuesday.

A key inflation gauge due Friday is likely to be one of the most closely watched reports of the week. Signs that prices are rising could limit the Fed's ability to keep cutting rates.

Stocks to watch Monday include General Motors (Charts, Fortune 500). The United Auto Workers union set an 11 a.m. ET Monday strike deadline for its 73,000 members at the automaker late Sunday night, although talks between the union and the company were still ongoing.

Among tech stocks, Dell (Charts, Fortune 500) said it would start selling PCs through a major electronics chain in China. The computer maker is struggling to capture a bigger piece of the global market.

The Wall Street Journal reported Monday that Microsoft (Charts, Fortune 500) is waging a quiet campaign to convince Internet companies, advertisers and regulators to oppose the planned $3.1 billion acquisition of online advertising specialist DoubleClick by Web search leader Google (Charts, Fortune 500).

TJX Cos. (Charts, Fortune 500), the discount retailer whose brands include T.J. Maxx, Marshalls, and Bob's Stores. said late Friday it had reached a settlement of a class action lawsuit stemming from a massive security breach of customer data that affected at least 45 million credit and debit cards.

It did not give the cost of the settlement, but it said it included in a $107 million reserve included in its second-quarter report along with a $21 million reserve it had set aside for fiscal 2009.

There are no economic reports due Monday. But Housing and Urban Development Assistant Secretary Darlene Williams, told reporters following a speech in Singapore early Monday that the default rate on U.S. mortgages is stabilizing, adding that she didn't expect last week's cut in U.S. interest rates by the Federal Reserve to significantly affect the number of defaults.

In global trade, Asian markets rose, although Japanese, South Korean and Taiwanese markets were closed Monday for holidays. European stocks struggled in morning trading. The dollar hit yet another record low against the euro in early trading and was also lower versus the yen.

Oil pricesfell Monday after a storm in the Gulf of Mexico dissipated without reaching even tropical storm status or causing damage to key oil and gas facilities. U.S. crude for November delivery was down 72 cents to $80.90 a barrel in electronic trading.