New York - US stock index futures were modestly higher on Monday, indicating the S&P 500 would open near record levels, amid corporate merger activity and as hopes grew for more monetary stimulus in European markets.
* US investors took cues from Europe, where an index of major shares rose 0.7% after European Central Bank President Mario Draghi said Friday the ECB was prepared to respond with available tools if inflation dropped further.
*Investors took this to mean the ECB could start an asset purchase programme or adopt other stimulus measures in the coming months, which would boost assets like stocks and bonds.
* Draghi spoke at a global central banking conference in Jackson Hole, Wyoming. US Federal Reserve chair Janet Yellen spoke, too, but didn't provide hints on the timing of any interest rate hikes, contributing to a modest equity market decline on Friday.
* InterMune jumped 37% to $73.48 in premarket trading after Roche Holding AG agreed to buy the biotechnology company for $8.3bn in cash. The deal is the latest vote of confidence in the biotech sector, which many - including Yellen - worry is overvalued.
* S&P 500 e-mini futures rose 6 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract, indicating a higher open. Dow Jones industrial average e-mini futures added 44 points and Nasdaq 100 e-mini futures rose 15.5 points.
* US stocks have been strong of late. Major indexes closed a third week of gains on Friday, with the Dow and S&P enjoying their best weeks since April. The S&P hit an intraday and closing high last week, and market participants are looking for the benchmark index to pierce the 2 000 level for the first time.
* Burger King is in talks to acquire Canadian coffee and doughnut chain Tim Hortons, in a deal that would be structured as a so-called tax inversion transaction to move Burger King's domicile to Canada, which has lower overall corporate taxes.
* The Wall Street Journal reported that activist Investor Engine Capital LP wants Ann to sell itself, believing the company could fetch around $2.5bn.
* A cyber attack took down Sony's PlayStation Network over the weekend, though it was back online on Monday.
* Investors continued to eye tensions between Ukraine and Russia, with Ukraine's military saying its government force had engaged with a separatist armoured column near the southeastern town of Novoazovsk, not far from the Russian border.
* Traders are looking ahead to a read on July new home sales, as well as August data on the services sector from financial data firm Markit. The Markit data will be released at 15:45, and the housing data at 16:00.