U.S. stock index futures gained ahead of the market's opening Monday in the wake of stronger markets overseas, and buoyed in part by AT&T's plan to buy T-Mobile US from Deutsche Telekom to create the largest mobile provider in the United States.
Analysts expect the deal, which is subject to approval by regulators, to be positive for both AT&T and Deutsche Telecom.
AT&T shares rose a little less than 1 percent in pre-opening trading. The German company’s shares rose as much as 14 percent following the news, while shares of Sprint sank. T-Mobile U.S. has not been able to compete with bigger U.S.
Also on the M&A front, Charles Schwab said it will buy OptionsXpress in an all-stock deal for $17.91 a share or about $1 billion.
Citigroup shares gained after the banking giant announced a 1-for-10 reverse stock split, which will reduce Citi's outstanding common shares. The bank also said it will reinstate a quarterly dividend in the second quarter. The dividend will be 1 cent.
Crude oil traded higher Monday morning amid persisting geopolitical concerns.
Military action in Libyastoked fears of an escalating crisis and was likely to offer further support to oil prices Monday, while Japan’s nuclear crisis continued to unnerve investors. Workers had to evacuate the area Monday as