Updated from 8:01 a.m.
S&P 500 futures were up 0.51%, Dow Jones Industrial Average futures climbed 0.54%, and Nasdaq futures added 0.69%.
AT&T agreed to buy Time Warner in an $85.4 billion deal, paying $107.50 a share. If approved, this will create a behemoth media and telecommunications company that combines internet services and programming.
The deal values Time Warner at a 20% premium to its $89.48 closing price on Friday. Time Warner shareholders would receive $53.75 a share in cash and $53.75 a share in AT&T stock. The total transaction value is $108.7 billion, after including Time Warner's net debt, the companies said.
Time Warner shares were down 1.2% in premarket trading on Monday, while AT&T shares were 2.7% lower.
In a deal valued at $8.3 billion, including debt, Rockwell Collins (COL) agreed to acquire B/E Aerospace (BEAV) . Through the deal, Rockwell Collins is trying to increase its exposure to the commercial aircraft cabin. B/E Aerospace shares jumped 15.89% in premarket trading to $58.65.
In other deal news, TD Ameritrade(AMTD) - Get Report said Monday that it entered into a "definitive agreement" to purchase online brokerage Scottrade Financial Services in a cash-and-stock deal valued at $4 billion.
TD Ameritrade, the biggest discount brokerage by trade executions, said it expected to realize about $450 million in combined annual expense synergies, and more than $300 million in additional longer-term opportunities once the deal closes. TD Ameritrade's share were down 0.9% in premarket trading to $36.75.
Chinese investment firm China Oceanwide Holdings agreed to acquire Genworth Financial(GNW) - Get Report for about $2.7 billion, or $5.43 a share in cash. Genworth shares are down 1.92% at $5.11 in premarket trading Monday.
China Oceanwide also said it would use $600 million in cash to tackle Genworth debt, and cash of $525 million for the U.S. life insurance businesses.
Monday is a slow day for economic data. Investors will get a glimpse at the PMI manufacturing index for October, which is expected to be at 51.2, vs. a September reading of 51.5. The measure is expected to show continued slow growth in new orders, which may be due to the presidential election cycle delaying orders due to uncertainty.
The Federal Reserve Open Market Committee enters a blackout period prior to its meeting on Nov. 1 and 2; before that, four Fed speakers are expected to speak Monday.
New York Fed Bank President William Dudley will speak at 9 a.m. on the U.S. Treasury market, while St. Louis Fed President James Bullard will speak at 9:05 a.m. to the Association for University Business and Economic Research in Fayetteville, Ark. In the afternoon, Chicago Fed President Charles Evans will discuss monetary policy, and Fed Board Governor Jerome Powell is set to speak on the future of Treasury market settlement transactions.
Nearly a third of S&P 500 companies are scheduled to report earnings this week.
VF Corp.(VFC) - Get Report , an apparel and footwear company with brands including North Face, Vans, and Timberland, reported that third-quarter earnings were $1.20 a share, beating expectations of $1.15 a share, compared to $1.07 a share from a year ago. But sales for the quarter fell 1% from a year ago. VF Corp.'s shares are down 2.14% to $53.50 in premarket trading.
will release it results for the three months through September after the market closes Monday. The San Francisco-based company is expected to report earnings of 73 cents a share compared to the 62 cents a share during the same period last year. Visa's shares are up 1.09% to $83.25.
Kimberly-Clark(KMB) - Get Report , a maker of consumer goods, is expected to report earnings before the bell. The Irving, Texas-based company is expected to report earnings of $1.54 a share, compared to $1.51 a share a year ago. Kimberly-Clark's shares are down 2.79% to $116.24 in premarket trading.