The futures contract for the Dow Jones Industrial Average last was up 2 points at 13,547.
Futures contracts for the S&P 500 and the Nasdaq 100 were up by 0.30 point and 0.5 point, respectively, at 1,522.80 and at 1,934.
On Friday stocks managed a rally, paring a portion of their heavy losses for the week, as investors sought bargains in a market battered by three days of sharp drops.
There were global stocks routs earlier last week as U.S. and foreign government bonds sold off. The selling pushed the yield on the 10-year benchmark note a high as 5.25%, equaling the federal funds rate and signaling the market expects official U.S. rates to rise soon.
"There's no data and not a lot of corporate news," said Art Hogan, chief market strategist at Jefferies & Co. "That is a day in which we will look at the collateral damage done to the markets last week and see it if is justified."
"We have a host of concerns, all of which are credible," he said. "Last week we priced in for a worst-case scenario. But none of these factors have brought the U.S. economy to a screeching halt. "
Rates were back in focus on Monday. In a speech in Ireland, Cleveland Federal Reserve President Sandra Pianalto said that the housing market's deterioration had removed up to 1% from U.S. economic growth, according to Action Economics.
She also noted that economic fundamentals remain "solid" and said inflation remains the major risk to the economy, remarks likely to reinforce investor concerns that the next Fed move could be to tighten monetary policy and increase rates.
More clues about the Fed's leanings will come on Wednesday, when the latest Beige Book regional economic survey's released, and on Friday, which Chairman Ben Bernanke will speak on inflation.
Stocks of note
Shares of Johnson & Johnson were upgraded by Credit Suisse to neutral from underperform, concluding that the blue-chip stock has underperformed rival pharmacueticals by 17% and the S&P 500 by 16% over the last 12 months.
The Wall Street Journal reported that General Electric Co. and Microsoft Corp. , both Dow Jones Industrial Average components, recently held discussions about the possibility of jointly acquiring Dow Jones & Co. , the publisher of this report. But they were unable to reach agreement on proceeding with a counterbid.
News Corp. has offered $5 billion, or $60 a share, for Dow Jones.
Separately, the New York Times is reporting that the Bush administration has repeatedly defended Microsoft both in the U.S. and abroad against accusations of anticompetitive conduct. But some state attorneys general may pursue accusations made by Google Inc. over Microsoft's operating system.
International Business Machines Corp. disclosed that it's the suitor behind a $746 million offer for Telelogic . The Financial Express said IBM also is trying to buy Citigroup's Indian outsourcing division.
After the close of trade, there will be a mid-quarter update from Texas Instruments Inc.
Treasurys were back under pressure, as Pianalto's remarks further fed expectations that rates will continue higher. The benchmark 10-year Treasury note was off 10/32 at 95 with a yield of 5.149%.
The New Zealand dollar, or the kiwi dollar, tumbled after the country's central bank confirmed that it had sold the currency to weaken it. The kiwi was last down 1.8% against the U.S. dollar and down 1.6% against the Australian dollar. The euro was last down 0.2% at $1.3346, while the dollar was up 0.01% at 121.72 yen.
Commodities were on the rise in the early going, with the front-month gold contract last up $4 at $649.50 an ounce.
"Bolstereby light physical buyers and on the back of an expected technical bounce, gold prices attempted a comeback on Monday morning," wrote Jon Nadler, an analyst at Kitco, in a research note.
And in energy, the front-month crude future last was 43 cents higher at $65.19 an ounce.
By Leslie Wines