The stock market finished last week with back-to-back victories that left the S&P 500 within striking distance of the six-month high it hit two weeks ago. That optimism has carried over into pre-market trading this morning, with the S&P 500 futures currently five points, or 0.2%, above fair value.
Upcoming trade talks between the U.S. and China, which are scheduled to take place on Wednesday and Thursday, have helped prop up the market this morning, along with the conclusion of the Greek bailout and the outperformance of the trade-sensitive Shanghai Composite (+1.1%), which came up from a two-year low.
Some M&A activity has also got investors buzzing, with SodaStream (SODA) -- an Israeli manufacturing company best known for its at-home carbonated drink maker -- agreeing to be acquired by beverage and snack giant PepsiCo (PEP) for $144 per share, in cash, or roughly $3.2 billion. That's a premium of 10.9% to Friday's closing price, and SODA shares are up 10.0% in pre-market trading.
On the earnings front, today's calendar is pretty light. However, looking ahead, a number of retailers will be reporting their quarterly results this week, including, but not limited to, TJX (TJX), Kohl's (KSS), Urban Outfitters (URBN) Lowe's (LOW), Target (TGT), Gap (GPS), Ross Stores (ROST), and Foot Locker (FL).
As for economic data, investors will not receive any notable reports until Wednesday, when the minutes from the August FOMC meeting will be released. Also of note, Existing Home Sales for July will also cross the wires on Wednesday, and New Home Sales for July will be released on Thursday.
Looking at other markets, U.S. Treasuries are higher this morning, pushing yields lower across the curve, with the benchmark 10-yr yield down three basis points at 2.84%. Meanwhile, West Texas Intermediate crude futures are down 0.3% at $65.01 per barrel, and the U.S. Dollar Index is a tick higher, up 0.1%, at 96.10.