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Stocks head for higher open amid M&A talk, earnings reports

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[April 28, 2008]  NEW YORK (AP) -- Stocks headed for a higher open Monday amid more speculation about mergers and acquisitions, and ahead of a handful of earnings reports on tap for the session.

Wm. Wrigley Jr. Co. shares will be in focus after The Wall Street Journal and The New York Times reported that Mars Inc. and Warren Buffett's Berkshire Hathaway Inc. may be close to buying the company for more than $22 billion. The acquisition of the maker of Doublemint gum could be announced as early as Monday.

Meanwhile, Continental Airlines Inc. said late Sunday it would not be part of any merger in the near future, a surprise announcement after weeks of speculation it would link up with United Airlines to create the world's biggest airline. Continental Chairman and Chief Executive Lawrence Kellner told employees the Houston-based airline was better off alone just one week after United shocked Wall Street with a $537 million first-quarter loss.

Visa Inc. will post quarterly results late in the day. The world's largest credit-card processor is expected to report strong profits for the second quarter, driven by faster growth overseas.

Health insurer Humana said Monday that increased Medicare Advantage membership helped drive first-quarter profit above Wall Street expectations, as it raised its outlook for the full year.

Humana Inc.'s net income grew to $80.2 million, or 47 cents per share, from year-ago profit of $71.2 million, or 42 cents per share.

Others reporting results include Verizon Communications Inc., Sysco Corp., and Tyson Foods Inc. So far about half the Standard & Poor's 500 have reported results.

Dow Jones industrial average futures rose 35, or 0.31 percent, to 12,910. Standard & Poor's 500 index futures were up 5.70, or 0.41 percent, at 1,402.80, while Nasdaq 100 index futures added 8.00, or 0.43 percent, to 1,929.00.

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Stocks finished mostly higher on Friday, with the Dow industrials rising 42 points and the S&P 500 up 9 points. The major indexes finished last week moderately higher.

Bond prices were expected to decline ahead of the Federal Reserve policy-setting meeting on Wednesday, where central bankers are expected to lower interest rates by a quarter point. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.89 percent from 3.87 percent late Friday.

A spike in oil prices is also expected to pressure stocks. A barrel of light crude rose 48 cents to $119 in premarket trading on the New York Mercantile Exchange.

The dollar was lower against other major currencies, while gold prices fell.

Overseas, Japan's Nikkei stock average rose 0.22 percent. In morning trading, Britain's FTSE 100 rose 0.67 percent, Germany's DAX index added 1.10 percent, and France's CAC-40 rose 0.93 percent.

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On the Net:

New York Stock Exchange: http://www.nyse.com/

Nasdaq Stock Market: http://www.nasdaq.com/

[Associated Press; By JOE BEL BRUNO]

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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