Stocks in China rose sharply to start the week after the country’s premier stated over the weekend that the economic situation in China is improving and better than expected. In Shanghai rose 2.1 % to 2,557.46 while Hong Kong’s Hang Seng climbed 1 % to 15,750.91. Elsewhere in Asia, Japan’s Nikkei 225 stock average gained 17.17 points, or 0.2 %, to 8,924.75 while South Korea advanced 0.6 % to 1,336.39.

In Europe, markets sold off as investors took profits after last week’s gains. Britain’s FTSE 100 was down 1.2 % to 4,044.22, Germany’s DAX fell 2.5 % to 4,561.76 and France’s CAC 40 faltered 2.1 % to 3,026.19.

U.S. Futures

Futures in the U.S. look to open lower amidst a host of M&A activity and earnings to kick off the week; the market is going for its 7th consecutive weekly gain. Dow futures fell 109, or 1.4 %, at 7,975. Standard & Poor’s 500 index futures are declining 13.40, or 1.6 %, at 853.40. Nasdaq 100 index futures lost 18.50, or 1.4 %, to 1,333.50.

Markets made it 6 in a row on Friday in a back and forth session with stocks closing just north of flat. The Dow Jones industrial average rose 0.1 %, to 8,131.33. The Standard & Poor’s 500 index added 0.5 %, to 869.60, while the Nasdaq composite index rose 0.2 %, to 1,673.07.

For the week, the Dow gained 48 points, or 0.6 %, giving the average six straight up weeks. That’s the longest streak since it rose for seven straight weeks in the period ended May 18, 2007.The S&P 500 index posted a gain for the week of 1.5 %. The Nasdaq is up 1.2 % for the week.

Currencies and Commodities

The dollar traded at 98.70 yen, declining 0.4539% in the currency market. The euro depreciated 0.6546% to $1.2956, while the pound retreated 1.56% to $1.4566. Gold rose $3.80 to $871.70 an ounce, while silver rebounded 1.95% to $12.02. In the bond market, the yield on the benchmark 10-year Treasury note fell 6 basis points to 2.89% on rising bond prices. Light, sweet crude fell $2.12, or 4.21% to $48.21 a barrel on the NYMEX.

Corporate News

Pepsi (PEP), currently owning 33 % of Pepsi Bottling group and 43 % of PepsiAmericas, is offering to acquire both bottlers for $6 billion; a 17% premium for each company’s equity. PEP also reported quarterly results, where profit fell 1 % to $1.14 billion, or 72 cents per share; beating the 67 cents per share analysts predicted. The company missed on the top line, as revenue fell nearly 1 % to $8.26 billion, below the $8.28 billion forecasted.

Hasbro (HAS), the country’s 2nd largest toymaker, reported profit in the 1st quarter fell to $19.7 million, or 14 cents per share, from $37.5 million, or 25 cents per share in the quarter a year ago. That is a decline of 47%. Revenue fell 12 % to $621.3 million from $704.2 million

Bank of America (BAC), who has received additional capital injections by the federal government totaling $45 billion, reported 1st quarter earnings of $2.81 billion, or 44 cents per share. Analysts expected profit for the Charlotte based financial giant to tally a mere 4 cents per share.

Sun Microsystems, Inc.(JAVA) and Oracle Corporation (ORCL) announced today they have entered into a definitive agreement under which Oracle will acquire Sun common stock for $9.50 per share in cash.

Economic News

10:00 AM
Leading Indicators: A composite index of ten economic indicators that should lead overall economic activity. The consensus is for a decrease of 0.3% for the month of March. This follows a decline of 40 basis points in February. The biggest downside continues to be the labor market and continued jobless claims.

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3. Futures Fall as Stimulus Plan Nears

Asian stocks fell, extending a global rout. The MSCI Asia Pacific Index fell 5.2% dropping every day this week and off almost 10% since the close on Friday. Japan’s Nikkei 225 Stock Average lost 6.9% overnight. In Europe, the FTSE 100 index of leading British shares was down 2.2%, while Germany’s DAX fell 3.3%.

U.S. Futures

Futures look to extend yesterday’s losses on the street. The Dow is off 0.6% to 7,986, the lowest level since 2003; S&P futures are down 6.10 points to 806.40, off to its lowest mark in 5 years as the bottom resistance has now been broken.

Currencies and Commodities

The dollar weakened 0.6% to 95.31 yen, while the euro lost ground to the dollar at $1.2513. Treasury prices have soared, sending yields on the two-year U.S. note down to 1.043%, the lowest seen since Fed data on the figure began in 1976. Crude was down around 2.65% to $52.20, continuing its sidestep move with the equity market; gold rose 1.10% to $744.1 an ounce

Economic News

The senate has cancelled their vote for the auto industry bailout, a bridge loan for one of the last manufacturing industries in the United States.

8:30 AM
Jobless Claims: New unemployment claims for the week of November 15th, to show the number of individuals who filed for unemployment insurance. The fewer people filing for unemployment benefits, the more have jobs, the more income in the consumer’s pocket, as well as a forecast on the strength of the economy. The consensus is for an increase of 505,000 as the unemployment rate heads toward 7%.

Leading Indicators: A composite index of ten economic indicators that should lead overall economic activity. The consensus is for a decline of 60 basis points for the month of October

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1. Dollar Tumbles on Fed Move, Markets React
2. Futures Flat as Global Markets Fall
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