Stocks set for mixed open
Futures turn higher in anticipation of Treasury Secretary Paulson's plan to outline market regulation.
NEW YORK (CNNMoney.com) -- U.S. stocks looked set for a mixed start on the last day of the quarter, as investors await a Bush administration plan aimed at overhauling regulation on Wall Street amid a meltdown in the financial sector.
About an hour before the markets open, the Dow was still set for a slightly lower open, even as the tech-heavy Nasdaq and the broader S&P futures were higher, suggesting a mixed start for stocks. Futures were all pointing much lower earlier Monday morning.
"In the last day of the quarter, we are headed for a give-and-take market," said Avalon Partners chief market economist Peter Cardillo, who said that the dour economic news of the first quarter will continue to drag on investors. "Expect the quarter to end the way we entered it - on a sour note."
Stocks ended Friday's session lower for the third straight session as economic fears and the credit crunch took their toll on Wall Street, which has had a wretched first quarter.
Investors will be watching Treasury Secretary Hank Paulson, who is expected to unveil a sweeping plan giving the Federal Reserve new regulatory powers over Wall Street, although some have questioned whether the new powers will come with true enforcement capabilities. The announcement is expected at 10 a.m. ET.
In other news from the Bush administration, Housing and Urban Development Secretary Alphonso Jackson is expected to resign Monday, according to a report in The Wall Street Journal.
The paper said the resignation would deal a blow to the administration's efforts to deal with problems in the residential mortgage market - the underlying cause behind the financial market turmoil. HUD runs the Federal Housing Administration, an agency politicians on both sides of the aisle hope will play a bigger role in helping homeowners avoid foreclosure.
In major corporate news, Wall Street brokerage Lehman Brothers (LEH, Fortune 500) filed suit against Japanese firm Marubeni, demanding $350 million in a case of alleged fraud.
Citigroup (C, Fortune 500) said Monday it was reorganizing its consumer group into two businesses as part of a broader overhaul of its corporate structure. The group will be divided into consumer banking and global cards, the company said. Citi also said it was revamping its overall structure, with an eye toward regional autonomy.
Bank of America (BAC, Fortune 500) may cancel the sale of its stock brokerage business after lackluster interest from potential buyers, according to a report in the Financial Times.
A study published in the New England Journal of Medicine Sunday determined Schering-Plough (SGP, Fortune 500) and Merck's (MRK, Fortune 500) Vytorin drug failed to improve heart disease even though it worked as intended to reduce three key risk factors.
French spiritmaker Pernod Ricard will buy Sweden's Vin & Sprit, the maker of Absoulte vodka, for $8.9 billion, continuing a spat of global consolidation in the liquor industry.
And promoter Live Nation (LYV) inked a 12-year deal with U2 to handle the band's concerts and merchandising.
Oil prices dipped as production resumed from a sabotaged pipeline in southern Iraq. U.S. crude for May delivery dropped 76 cents to $104.86 a barrel in electronic trading.
In global trade, shares in Japan finished lower. European markets tumbled in early trading. 
