U.S. investors were unwilling to make big bets early Monday after four weeks of big gains. Yahoo could draw attention after officially announcing a $1.1 billion deal to buy blogging site Tumbler.
U.S. stock futures were barely lower ahead of the open. But shares of Yahoo ( slumped after the Tumblr deal was made official. Earlier, shares were up more than 2%. )
Actavis ( shares jumped after the drug company it would buy )Warner Chilcott ( in an $8.5 billion stock-for-stock transaction. )
Chesapeake Energy ( shares edged up after the natural gas and oil producer announced its new CEO would be Robert Douglas Lawler, an executive at )Anadarko Petroleum (. )
A few companies are still expected to report quarterly results Monday.
Campbell Soup ( reported quarterly earnings that beat expectations ahead of the market open. )
TiVo (reports in the afternoon. )
Home Depot (, )Best Buy (, )Target ( and )Hewlett-Packard ( are due later in the week. )
Deutsche Bank analyst Jim Reid said that Federal Reserve Chairman Ben Bernanke's testimony on economic outlook, scheduled for Wednesday before the Joint Economic Committee, "will be the highlight in a week where we may learn more about the Fed's intentions with regards to potential [quantitative easing] tapering."
U.S. stocks finished higher Friday, with the Dow and S&P 500 ending at record levels.
The three major U.S. indexes have gained around 16% so far this year on a combination of gradually improving economic data and continued support from the Federal Reserve.
Meanwhile Asian markets ended with significant gains. The Shanghai Composite added 0.8%, the Nikkei advanced 1.5% and the Hang Seng increased 1.8%. The Nikkei is at its highest point in about five years.