Before the Bell

Giddy from yesterday's rally, Wall Street is nonetheless game for venturing onward and upward this morning, with the prodding again coming from the mergers and acquisitions side. Stock futures are pointing up a bit after Wachovia announced plans to buy brokerage A.G. Edwards.

In another possible boost to the mood, oil has slid for the fifth straight day ahead of data expected to show a recovery in U.S. gasoline stocks. London Brent crude is below $68 a barrel. The pending release of economic data, however, is keeping investors cautious.

Gross domestic product figures, including an inflation index favored by the Fed, are coming shortly, and the National Association of Purchasing Managers-Chicago's report on Midwest business conditions is due soon after the opening bell. U.S. Treasuries are steady, and the dollar is not far from a seven-week high against the euro and nearly unchanged against the yen.

In more M&A, private equity firm Thomas H. Lee and insurer Fidelity National Financial are buying business services company Ceridian. Several retailers have reported earnings, including Sears, whose profit before special items was nearly unchanged as sales declined.

Circuit City is planning another round of job cuts, according to The Wall Street Journal. And IBM has pink-slipped nearly 1,600 employees in its computer services business. If you need cheering up for any reason, look to the skies.

For the first time in seven years, all major U.S. airlines will be out of bankruptcy as Northwest emerges today.

Lisa Von Ahn - Editor

www.reuters.com