Stocks set to open slightly higher

NEW YORK (CNNMoney.com) -- At the start of a holiday-shortened trading week, U.S. stocks were poised to edge higher at the open as investors focus on 2011.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were up between 0.3% and 0.5% ahead of the opening bell. Futures measure current index values against perceived future performance.

On Friday, stocks ended little changed. Markets hovered at two-year highs hit in the previous session, as President Obama signed a tax-cut plan into law. Stocks have been trending higher since the compromise deal was announced.

The major indexes have risen more than 4% this month, and are poised for double-digit gains for the year. Investors are already looking ahead to 2011 -- and many have pretty bullish outlooks for the new year.

"The run-up that you are seeing here in the next 7 or 8 days is not unusual," said Jim Russell, Partner and CFO at The Collingwood Group -- a financial advisory firm located in Washington DC. He said investors are positioning their portfolios for the new year.

"The first part of 2011, I think there is going to be a continued run-up in the equity market," Russell said. "The market is traveling on short-term information that says we are in a good position. We are recovering, American businesses are going to take off, and we have had some very good news with consumer spending."

Meanwhile, Russell thinks the long-term picture is less rosy. With a stubbornly high unemployment rate, significant lost value in the real estate market, and nearly broke state and local governments -- Russell says there will be a downward shift in the markets over the longer-term.

World markets: European stocks were higher in afternoon trading. Britain's FTSE 100 rose 0.6%, the DAX in Germany gained 1.1% and France's CAC 40 was up 1.1%.

Tensions on the Korean peninsula were escalated after Seoul's planned live-fire drill. North Korea said the drill could ignite a war, but the country did not act immediately on Monday.

Asian markets ended the session lower. The Shanghai Composite sank 1.4%, the Hang Seng in Hong Kong lost 0.3% and Japan's Nikkei fell 0.9%.

If North Korea levied a full-scale response and starts a war, markets might have a more significant response. "It really depends on how much of Southeast Asia gets involved with this -- where Japan falls in and where China falls in," Russell said.

Companies: Web commerce company eBay (EBAY, Fortune 500) said it has reached a deal to purchase brands4friends.com -- Germany's largest online shopping site -- for about $200 million. "The move is designed to strengthen eBay's position as a leading online fashion destination in Europe," the company said in a written statement. Shares of eBay were little changed in premarket trading.

Consumer food and beverage company Sara Lee Corp. (SLE, Fortune 500) is in talks to sell itself to a Brazilian meat-processing giant JBS SA, according to reports. The companies are sparring over price, however, stalling the deal. Shares of Sara Lee were down more than 3% in premarket trade, but the stock spiked Friday on the news according to reports.

Adobe Systems (ADBE) will issue its quarterly results after the closing bell. Analysts expect the company to report earnings per share of 52 cents.

Currencies and commodities: The dollar fell against the Japanese yen, edged higher against the euro, and was almost flat against the British pound.

Oil for January delivery gained 44 cents to $88.46 a barrel.

Gold futures for February delivery rose $6.80 to $1,386.00 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury edged up, pushing the yield down to 3.29%.