Stocks set to rebound

@CNNMoneyInvest May 21, 2012: 8:39 AM ET

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NEW YORK (CNNMoney) -- U.S. stocks were poised to rebound Monday, after closing out one of the worst weeks of the year, as investors pinned their hopes on European leaders' abilities to manage the continent's debt crisis.

Over the weekend, the Group of Eight nations met and reaffirmed their commitment to keeping Greece in the eurozone. And two opinion polls released in Greece reportedly put the pro-bailout party ahead of the anti-austerity Syriza party.

The combination of the G8 and the poll results was enough to boost sentiment across world markets, with European and Asian stocks eking out gains and the euro holding steady around $1.28.

"I don't think we're out of the woods, but it's a step in the right direction," said Elisabeth Afseth, a fixed income analyst with Investec in London, about the polls out of Greece. She said the next three weeks leading up to the June 17 Greek election are likely to be volatile for both equity and bond markets.

In the United States, the Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were all about 0.6% higher. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

But trading will likely remain choppy as worries about Europe will continue to dominate trading this week.

After Greece failed to form a coalition government, concerns about the nation leaving the eurozone and how that would impact the rest of Europe have dominated global market sentiment.

An informal summit of European leaders is scheduled for Wednesday.

U.S. stocks closed lower Friday, after the euphoria surrounding Facebook's Friday IPO had worn off. All three indexes clocked their worst weekly losses of the year last week.

World markets: European stocks extended their gains in morning trading. Britain's FTSE 100 (UKX) rose 0.6%, the DAX (DAX) in Germany jumped 0.8% and France's CAC 40 (CAC40) gained 0.6%

Asian markets ended mixed. The Shanghai Composite (SHCOMP) edged higher 0.2% and Japan's Nikkei (N225) ended up 0.3%, while the Hang Seng (HSI) in Hong Kong shed 0.2%.

Companies: Yahoo (YHOO, Fortune 500) and China's Alibaba Group have agreed to a $7.1 billion deal, in which the Chinese Internet giant will buy back half of Yahoo's 40% stake in the company. Shares of Yahoo gained 7% in premarket trading on the news.

Social media giant Facebook (FB) fell below the $38 initial public offering price in premarket trading Monday, slipping 2.3% to $37.37. Shares of the greatly anticipated IPO achieved only a modest gain in trading Friday despite record IPO volume.

Over the weekend the CEO of Nasdaq OMX (NDAQ) said the exchange was embarrassed by the technical problems that delayed the start of trading in Facebook's stock.

JPMorgan Chase (JPM, Fortune 500) will remain in focus, with CEO Jamie Dimon scheduled to speak at a Deutsche Bank conference shortly after the opening bell. Bank of America (BAC, Fortune 500) CEO Brian Moynihan is also slated to speak.

Lowe's (LOW, Fortune 500) reported better-than-expected earnings but issued mixed guidance. Share fell 3% in premarket trading.

Campbell Soup (CPB, Fortune 500) posted a slight decline in earnings per share but performed slightly better than forecasts. Still, shares slipped 1.8% in premarket trading.

Economy: No major economic reports are expected in the U.S. on Monday.

Currencies and commodities: The dollar posted modest gains versus the euro, the Japanese yen and the British pound.

Oil for June delivery edged up 43 cents to $91.91 a barrel.

Gold futures for June delivery edged up $1.10 to $1,593.00 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell Monday morning, pushing the yield up to 1.73% from the 1.70% level late Friday.  To top of page

Index Last Change % Change
Dow 24,753.09 -58.67 -0.24%
Nasdaq 7,433.85 9.43 0.13%
S&P 500 2,721.33 -6.43 -0.24%
Treasuries 2.93 -0.05 -1.68%
Data as of 1:31am ET
Company Price Change % Change
Micron Technology In... 61.35 -0.14 -0.23%
General Electric Co 14.63 0.03 0.21%
Bank of America Corp... 30.16 -0.05 -0.17%
Advanced Micro Devic... 13.54 0.13 0.97%
Foot Locker Inc 55.74 9.35 20.16%
Data as of May 25
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15 yr fixed3.87%3.96%
5/1 ARM4.23%4.37%
30 yr refi4.41%4.53%
15 yr refi3.84%3.94%
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