Stocks set to rise after death of bin Laden

NEW YORK (CNNMoney) -- U.S. stocks were poised for a higher open Monday, as investors cheer news that Osama bin Laden was killed by U.S. forces.

The founder and leader of al Qaeda, Osama bin Laden, was killed by U.S. forces in Abbottabad, north of Pakistani capital of Islamabad.

In an address to the nation Sunday night, President Barack Obama called bin Laden's death, "the most significant achievement to date in our nation's effort to defeat al Qaeda."

"It was such an incredible victory that there is going to be a very, very good mood on Wall Street and throughout the country," said Jeffrey Sica, president and chief investment officer at SICA Wealth Management.

While the news should boost stocks first thing Monday morning, Sica said Osama bin Laden's death is not enough to sustain a long rally.

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

Meanwhile, oil prices retreated with crude for June delivering sliding $1.37, or more than 1%, to $112.56 a barrel.

"Oil can be a globally emotional, reactive market and any time that geopolitical risk is reduced there is less fear in the oil markets," said Derek Hoffman, chief executive and founder of Wall St. Cheat Sheet. "The news that there was a successful effect to find, capture and kill the number one terrorist in the world is a positive sign."

Gold prices also backed off their highs Monday. Gold futures for June delivery fell $5.70 to $1,550.70 an ounce, after hitting an intraday high of $1,577.40 an ounce.

On Friday, stocks finished their best month this year.

Stocks have headed higher since the beginning of the year amid strong earnings. Despite jitters about the economy and concerns about inflation, April was the best month for the three indexes since December.

While corporate earnings have thus far been strong, Sica said the weak read on the economy's growth and the labor market last week were causes for concern.

World markets: Markets around the world had a muted reaction to Osama bin Laden's death with Britain's FTSE 100, the Hang Seng in Hong Kong and the Shanghai Composite all closed for holiday.

Other European stocks rose slightly in morning trading. The DAX in Germany rose 0.8% and France's CAC 40 edged higher 0.4%.

And Japan's Nikkei ended the session 1.57% higher.

Economy: Wall Street will get the Institute for Supply Management's April manufacturing index, as well as construction spending figures from the Commerce Department, both out at 10 a.m. ET.

Economists polled by Briefing.com expect the April ISM index will fall to a reading of 58.5 from March's 61.2, while construction spending figures are expected to fall 0.5%.

Companies: The Nasdaq-100 index will be rebalanced to reduce the weight of Apple's stock by about 40%. Apple (AAPL, Fortune 500) currently represents 20.5% of the index. After the rebalancing, Apple's weight will be reduced to 12.3%.

Shares of TiVo (TIVO) were up almost 18% in premarket trade after DISH Network Corporation (DISH, Fortune 500) and EchoStar Corporation (SATS) announced they will pay TiVo $500 million to settle an ongoing patent dispute.

Separately, DISH reported earnings per share of $1.22 for the quarter ended in March, easily topping forecasts. Also, DISH said it gained approximately 58,000 net subscribers during the quarter. Shares of DISH were up almost 8% in premarket trade.

Currencies and commodities: The dollar fell against the euro, but gained strength against the Japanese yen and the British pound.

Bonds: The price on the benchmark 10-year U.S. Treasury dipped, pushing the yield up to 3.31%.