Among pre-market highlights, American Home Mortgage (AHM: chart) dropped 43% after the company delayed the payment of its quarterly dividend, citing the need to improve liquidity. In earnings news, ValueClick (VCLK: chart) fell 19% after it cut its earnings outlook, Verizon (VZ: chart) added 0.6% after it posted an in-line 6% profit rise and Humana (HUM: chart) rose 3% after it said its quarterly earnings more than doubled.

On the merger-and-acquisition news front, Verizon Communications (VZ: chart) announced Monday it agreed to acquire Rural Cellular Cop. (RCCC: chart) in a deal worth $2.7 billion. In overseas deal news, South Korea''s Doosan Infracore said it will buy Ingersoll-Rand''s (IR: chart) Bobcat construction equipment unit for $4.9 billion. S&P 500 futures rose 6.7 points at 1,464.70 and Nasdaq 100 futures rose 10.75 points at 1,974.25. Dow industrial futures rose 56 points.


8:30AM New York, 1:30 London – European markets trade lower ahead of New York opening. Takeover and earnings news dominate early trading.

European markets are trading lower at mid-day trading after a week of sharp losses tracking markets decline in the U.S. Spain and Germany lead the region with a loss of 0.6% followed by a loss of 0.3% in the UK, France, and Italy. Every market in the region is trading lower ahead of the opening in the U.S. and after the close of the Asian markets.

ABN Amro, the subject of takeover from two rival financial groups, said that it no longer recommends the offer from Barclays. The Dutch bank board apparently changed its mind after higher offer from Royal Bank of Scotland. Separately the Dutch bank also reported 7% decline in profit to 1.13 billion euros from $1.2 billion euros a year ago. The total operating income jumped 12.8% to 5.446 billion euros. Latin America and European business units played a key role in net revenue.

ICI rejected the revised offer from Akzo Nobel hoping that the company is valued at higher than the bid of $16 billion.

Spain based Telefonica reported the second quarter profit of 2.57 billion euros from 1.14 euros a year ago on one time asset sale. The telephone company revenue jumped 6.5% to 14.08 billion euros. Latin American business revenue jumped 13%, Spain revenue jumped 5.4% and European revenue increased 3.4%.

Stat Oil, Norwegian oil and gas company reported second quarter profit of 10.72 billion kroner from 9.6 billion a year ago on revenue gain of 1.2% to 108.8 billion kroners. The production of oil and gas in the quarter rose to 1.11 million barrels of equivalent oil, 2.7%. The company recently acquired oil and gas assets from Norsk Hydro.


8:00AM Verizon agreed to buy Rural Cellular for $2.7 billion.

Verizon Communications (VZ: chart) announced Monday it agreed to acquire Rural Cellular Cop. (RCCC: chart) in a deal worth $2.7 billion, or $45 a share. The transaction represents a premium of $13.19, or 41% over Rural Cellular''s Friday close of $31.81 a share. Rural Cellular surged 17.5% in pre-market trading.

Verizon Communications also reported positive Q2 2007 financial and operational results on higher margins and rising revenue in its wireless, broadband, data, video and global IP markets. Verizon earned of $1.7 billion, or 58 cents, much higher than 43 cents in last-year same period.


7:30AM New York, 8:30 PM Tokyo, 5:00PM Mumbai – Asian markets rebound led by a surge in Shanghai.

Asian markets staged a broad recovery on earnings and gains in steel stocks in Japan and financial services companies in China.

CSI 300 Index in Shanghai increased 2.2% to record close at 4,440.76 leading all markets in the region. South Korea followed with a rise of 1.25%, Singapore with an increase 0.96%, and Hong Kong added 0.75%. However smaller markets fell led by 2.33% decline in Thailand and 1.5% in Philippines. Taiwan lost 0.9% after leading the recent declines in Asia last week.

China Life increased 3.3% after the company indicated that first half profit is likely to double on higher premiums and gains in stock market.

HSBC reported its earnings after the close in Hong Kong. The bank earnings gained to $10.9 billion from $8.7 billon or earnings per share increased to 94 cents from 77 cents a year ago. The revenue in the period jumped 23% to $42.1 billion. The company increased its reserves to cover losses arising from subprime loans in the U.S. by 63% to $6.4 billion. HSBC closed nearly unchanged in Hong Kong trading ahead of the release but added 2.4% in London mid-day trading.

Seoul based Doosan Infracore announced its acquisition of construction vehicle division from U.S. based Ingersoll-Rand Co. for $4.9 billion. The largest foreign investment from South Korea, Bobcat division of Ingersoll rand was expected to fetch much less according to the Wall Street Journal. Bobcat generated $2.6 billion in sales in the year 2006. The Korean conglomerate has recently been expanding its construction and services business.