Stocks set for flat open
Futures drift, with Microsoft's new approach to Yahoo in focus.
NEW YORK (CNNMoney.com) -- Stock futures drifted early Monday as investors weighed a new forecast of further weakness in the U.S. economy along with Microsoft's new approach to Yahoo.
About three hours before the start of trading, Nasdaq and S&P futures were little changed and pointing to a flat to narrowly higher start for Wall Street.
A survey to be released Monday by the National Association for Business Economics found a majority of economists now believe the economy is in a recession or will be in one this year. A February survey found a slight majority still expecting to avoid a recession.
The latest survey also found and that forecasters expect unemployment to continue to rise, but that they believe the economy has already weathered the worst of the housing downturn and credit crunch.
Investors will be watching Microsoft (MSFT, Fortune 500) and Yahoo (YHOO, Fortune 500). On Sunday, Microsoft said it had approached Yahoo about teaming up on a transaction. Microsoft said it hadn't resurrected full takeover bid for Yahoo, but left that possibility open.
At 10 a.m. ET comes the Conference Board's index of Leading Economic Indicators. Economists surveyed by Briefing.com forecast that index to be unchanged for April, after being up 0.1% in May, suggesting further sluggishness ahead for the economy.
After putting in a solid performance most of last week, stocks ended Friday's session little changed. High oil prices, which hit new records at the end of last week, played a role in dampening sentiment.
Oil prices retreated in early electronic trading Monday. A barrel of U.S. crude fell 18 cents to $126.11.
In other deal news, another troubled takeover effort could be revived. The Wall Street Journal reported that Electronic Arts (ERTS) is likely to again extend the deadline for its hostile tender offer to acquire videogame rival Take-Two Interactive Software (TTWO) after failing to get the support of a majority of the company's shareholders for a deal. EA's previous offer expired at 11:59 p.m. ET Friday.
General Motors (GM, Fortune 500) shares rose in after-hours trading Friday after a local of the United Auto Workers union ratified a deal to end a month-long strike at a plant that made the popular Buick Enclave, Saturn Outlook and GMC Acadia. That Michigan plant is set to reopen Monday.
GM got more good labor news when the UAW reached a tentative deal with GM supplier American Axle & Manufacturing (AXL) on Saturday, with the help of $218 million from GM. The 11-week strike at the company had severely hampered GM production of produce large pickup trucks and sport-utility vehicles and added to the automaker's first quarter loss.
In global trade, Asian stocks finished higher. European shares rose in midday trading. 
