Futures indicated a positive open for Wall Street Monday as investors were cheered by news of a deal that will avoid bankruptcy for commercial lender CIT Group.
CNBC has confirmed that the company has cut a deal with its key bondholders for $3 billion in rescue financing and will be able to avoid a bankruptcy filing. The official announcement should come sometime in the morning.
CIT shares soared more than 78 percent in premarket trading after gaining 70 percent on Friday.
Earnings reports will again be a key factor this week in whether the stock market can keep its recent momentum going. Despite little movement Friday, the major averages chalked up their best weekly gains last week since the week ending March 13.
This week will see about a third of the S&P 500 report quarterly numbers, with nearly a half of the Dow companies doing the same.
Oilfield services leader Halliburton said second-quarter profit fell 48 percent on weakness in exploration and production activity. But the 30 cents per share earnings appeared to narrowly beat analyst estimates, and shares were up about 1.5 percent premarket.
Also, toymaker Hasbro said its profit rose 5 percent on the strength from G.I. Joe and Transformers sales that were tied to summer movie releases. Shares gained 2.4 percent premarket.
Among this morning's other notable reports: auto parts maker Johnson Controls , and M&T Bank .
After the bell, we'll get the latest from Texas Instruments , as well as Boston Scientific , Legg Mason , and Zions Bancorp .
Monday's economic calendar is relatively light, although we will get the Conference Board's index of leading economic indicators at 10 am New York time, with economists expecting to see a rise of 0.5 percent for June.
Atlanta Fed President Dennis Lockhart will speak on the latest economic outlook in Nashville, Tennessee at 1:30 pm.
GlaxoSmithKline was up over 3 percent as it and Human Genome reported positive results for a late stage study of a new lupus drug - the first new treatment for that disease in decades.
We could also see some positive movement for shares of Linux provider Red Hat — it will replace CIT Group in the S&P 500 after the close of trading Friday July 24.
— Peter Schacknow, CNBC Senior Producer, contributed to this report