Stocks set for flat open

NEW YORK (CNNMoney.com) -- U.S. stocks were set to open flat Monday as investors looked to another deluge of corporate reports for direction after the recent surge on Wall Street.

At 8:47 a.m. ET, Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were narrowly mixed, losing their earlier gains.

Futures measure current index values against their perceived future performance and offer an indication of how markets may open when trading begins in New York.

Wall Street has soared the past two weeks, lifted by earnings surprises. The Dow, S&P 500 and Nasdaq all have risen to levels reached in October-November. Art Hogan, chief market strategist at Jefferies & Co., said that 140 of the S&P 500 companies will be reporting earnings this week.

Futures were off to a stronger start earlier in the morning, when Hogan said investor sentiment had been lifted by the recent earnings performance. He said that 73% of S&P 500 companies had beat estimates so far, compared to the historical average of 61%.

Also, he said that most companies were no longer afraid to offer guidance, demonstrating increased corporate confidence.

"I think the most important piece of this mosaic is that most companies are reporting guidance," said Hogan. "In the last two quarters we saw little or no guidance from corporate America. Two quarters ago, we were looking into the edge of the abyss. And now, we're looking at a recovery."

Corporate results: Investors are still focused on corporate profit reports.

Verizon Communications (VZ, Fortune 500), a wireless communications company, reported second-quarter earnings per share of 52 cents, down from the year-ago quarter, when EPS was 66 cents. This was in spite of revenue growth.

Honeywell (HON, Fortune 500), a defense and aviation contractor, reported second-quarter earnings per share of 60 cents, down from the year-ago EPS of 96 cents. The company blamed declining sales due to the sluggish economy.

The biotech Amgen (AMGN, Fortune 500) is also expected to report earnings.

Economy: On the economic front, the Commerce Department is due to release its new home sales index after the bell. Sales are forecast to have risen to a 355,000 unit annualized rate in June, according to Briefing.com.

World markets: Global stocks extended their rally. In Asia, gains helped Japan's Nikkei post its longest winning streak in 21 years. Major European markets were mostly higher in midday trading.

Money and oil: The dollar rose against the yen but slipped versus the euro and the British pound. The price of oil was nearly flat, edging up 9 cents a barrel to $68.14.