LONDON (Reuters) - Stock index futures indicated a positive open on Wall Street on Monday in a thin day for earnings, while technology shares might grab attention as Yahoo (YHOO.O) was set to rebuff a takeover bid from Microsoft.
Also in the technology sector, Motorola Inc (MOT.N) and Nortel Networks Corp (NT.TO) are in talks to combine their wireless infrastructure units, the Wall Street Journal reported, quoting people familiar with the situation.
By 5:45 a.m. EST, S&P 500 futures and Dow futures were both up 0.1 percent while Nasdaq futures were little changed.
Worries about a deeper global economic slowdown than expected hit equities, with Asian stocks (.MIAPJ0000PUS) down 2 percent and the pan-European FTSEurofirst 300 index (.FTEU3) 0.2 percent lower.
The S&P 500 (.SPX) fell on Friday and the Dow Jones industrials (.DJI) ended its worst week in nearly five years, hit by losses in shares of financials, home builders and other sectors at the centre of the credit market crisis.
Yahoo was set to reject Microsoft Corp's (MSFT.O) unsolicited bid, now worth $42 billion, as too low, a source familiar with the situation said on Saturday in the first clear signal that the board might be prepared to negotiate and sell the company.
"They're going to reject the deal," said Jonathan Monk, a portfolio manager at Aerion Fund Management.
"I can't see who else would be interested in doing a deal with them apart from Microsoft especially at this level. But presumably they will try to push the price higher."
On the M&A front, Delta Air Lines Inc (DAL.N) and Northwest Airlines Corp (NWA.N) may reach a merger agreement within weeks after sharing details of their plans with pilot unions, according to a report on Bloomberg.com citing people familiar with the talks.
Toy and game company Hasbro Inc (HAS.N) and conglomerate Loews Corp (LTR.N) are among the S&P 500 companies reporting earnings on Monday.
Last week, the Dow lost 4.4 percent while the S&P fell 4.6 percent and the Nasdaq ended 4.5 percent lower.
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