Stocks set for a flat open

By CNNMoney.com staff


NEW YORK(CNNMoney.com) -- U.S. stocks were expected to open flat Monday after leaders of the world's economic powers committed to reducing deficits over the next few years and reports on personal income and spending came in close to expectations.

Dow Jones industrial average (INDU) futures were down slightly ahead of the opening bell, while S&P 500 and Nasdaq futures were up slighlty.

Futures measure current index values against perceived future performance.

Stocks finished Friday's session mixed, completing a lower week for the three major indexes.

"We're coming off a bad week and we're still following on the heels of a terrible May," said Art Hogan, chief market strategist at Jefferies & Co. "But we've gotten to a point in the market where we've priced in a decent bit of bad news, so it won't take much to move the market higher."

A rally could be in store this week as confidence in the global economy picks up, he said.

"We had a G-20 meeting over the weekend that didn't cause anything to tip over the apple cart in terms of new developments, and it's seeming likely that we'll see financial regulation passed this week, so that's helping the financial sector rally," said Hogan.

G-20: Leaders of the world's most important economies agreed to ambitious targets for getting deficits under control, pledging to cut them in half by 2013, according to a statement made following the G-20 summit this weekend in Toronto.

Economy: Before the open, the Commerce Department reported that personal income rose 0.4% in May, while personal spending edged up 0.2%.

The government was expected to report that personal income rose 0.5% in May after climbing 0.4% in April, according to a consensus estimate from Briefing.com.

Personal spending was expected to have risen 0.1% from a flat reading in April.

Companies: Bank of America (BAC, Fortune 500) rose 1% in pre-market trading following reports that the bank has established an Australian advisory board that will be overseen by Don Argus, ex-chairman of BHP Billiton Ltd. (BHP)

World markets: Asian markets ended mixed Monday. Japan's Nikkei index lost 0.4%, while Hong Kong's Hang Seng index rose 0.2%.

Markets in Europe were up in early trading. Britain's FTSE 100 gained 0.3%, while France's CAC 40 rose 1.1%. Germany's DAX climbed 1.2%.

Dollar and commodities: The dollar was higher against the euro, but down versus the British pound and Japanese yen.

U.S. light crude oil for August delivery eased 41 cents to $78.45 a barrel.

COMEX gold's August contract gained $1 to $1,256.80 per ounce.

Bonds: Treasury prices rose, pushing the yield on the 10-year note down to 3.08% from 3.11% late Friday. Bond prices and yields move in opposite directions. To top of page

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