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Futures Lower; Apple Announces Dividend

U.S. stock index futures pointed to a weaker open on Monday as investors took a breather after strong gains last week.

Appleannounced a quarterly dividendof $2.65 a share and authorized a $10 billion stock repurchase program, which will be executed over three years. The new dividend will be initiated in the fourth quarter of fiscal 2012. Meanwhile, Berenberg boosted its price target to $750 from $445, while Mizuho Securities raised its price target to $700 from $635.

Meanwhile, Target said it expects its annual dividend to reach $3 a share or more by 2017 and plans to continue buying back shares even as it spends money to get ready for its launch in Canada next year.

Boeing will be watched after reports that its rival Airbus' wing crack problem may be worse than thought. A report in German magazine Der Spiegel said the company will need years to get past problems with wing cracks on its flagship A380 passenger jet.

On the M&A front, Dutch company TNT Express has accepted a $6.9 billion offer from UPS . Meanwhile, Citigroup raised its price target on rival FedEx to $110 from $95.

And Starbucks will open the first store in its new Evolution Fresh juice bar chain amid hopes the move will boost the company's position in the $50 billion health food sector.

Stocks in Europe traded lower in morning trade and in Asia, shares initially got a lift from last week's U.S. rally but the optimism was swapped for caution later in the day.

On the economic front, the housing market index is the only piece of notable economic data on tap.

Adobe is slated to post earnings after the closing bell.

—Follow JeeYeon Park on Twitter: @JeeYeonParkCNBC

Coming Up This Week:

MONDAY: Housing market index; Earnings from Adobe Systems
TUESDAY: Housing starts, Bernanke speaks, Fed's Kocherlakota speaks; Earnings from Tiffany, Oracle
WEDNESDAY: Weekly mortgage apps, existing home sale, oil inventories, HP annual mtg, Starbucks annual mtg; Earnings from General Mills, Discover Financial
THURSDAY: Jobless claims, FHFA home price index, leading indicators, Green Mountain Coffee shareholders mtg; Earnings from FedEx, Dollar General, Gamestop, Lululemon, Nike, Accenture
FRIDAY: New home sales, Fed's Lockhart speaks, Fed's Bullard speaks; Earnings from Darden Restaurants

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