U.S. PRE-MARKET INDICATORS

-Dow Industrial futures down 170 points

-S&P 500 futures down 24 points.

-Nasdaq futures down 27 points.

-Nasdaq-100 Pre-Market Indicator down 12.28 to 1173.47.

GLOBAL SENTIMENT

Nikkei down 1.4%

Hang Seng up 1.6%

FTSE down 2.9%

PRE-MARKET SECTOR WATCH

(-) Large cap tech: mostly lower

(-) Chip stocks: lower

(-,+) Small cap stocks: mixed

(-,+) Drug stocks: mixed

(-) Software stocks: lower

(-) Internet stocks: lower

(-) Financial stocks: lower

(+) Auto stocks: firmer

(=,+) Airline stocks: flat to firmer

(+,-) Retail stocks: mixed

UPSIDE MOVERS

(+) MNT (+89) soars after company sold to J&J at large premium, $31 per share.

(+) GM (-0.8%), F (+9), rebound from early pre-market declines as company prepares bailout proposal for Congress.

(+) GGP (+15.2%) gets loan extension.

(+) YHOO (+3.6%) gains though pares advance amid renewed, but mixed chatter about prospects for search sale to Microsoft (MSFT) (-1.7%).

(+) SPPI (flat) gets FDA's priority review for Zevalin.

(+) VICL (flat) gets milestone payment from Merck (MRK).

(+) ALKS(+15.2%) regains commercial rights to Vivitrol from Cephalon (CEPH), revises guidance up.

(+) QI (+24%) reports progress on partner talks, delays results.

DOWNSIDE MOVERS

(-) JNJ (-1%) expects $0.03 to $0.05 dilution to 2009 EPS after buying Mentor (MNT) for $31/share.

MARKET DIRECTION

Stocks indicate early declines, as investors take a breather from last week's significant rally. Futures are off their lows of the pre-market session as the opening bell nears, however. Financial and oil companies are early downside leaders. Auto shares fell initially but rebounded. Wall Street is digesting mixed reports on the early holiday shopping season, while negative overseas economic data served as a reminder of a weak global picture.

Last week, the S&P 500 climbed 12%, the Dow industrials rose 9.2% and the Nasdaq Composite rose 11%.

Slated for release is the Institute of Supply Management gauge on manufacturing in November. Fed Chairman Ben Bernanke is speaking on the economic outlook at a Dallas Fed conference. Treasury Secretary Henry Paulson is due to give an update on the U.S. economy and markets. Post-bell earnings include: SNDA, LTON.

Oil futures tumbled $2.67 to $51.76 a barrel as OPEC decided to wait until a formal meeting in mid-December to make a decision on a production cut.

Gold and other metal futures fell sharply early Monday, pressured by tumbling oil prices and firmness in the U.S. dollar. Gold for February delivery dropped $28.30 to $790.50 an ounce in electronic trading on Globex. The contract hit an intraday low of $785.40 an ounce.

Deal news was providing some support for early stock trading.

Johnson & Johnson (JNJ) will buy Mentor (MENT) for approximately $1.07 billion in a cash tender offer, or about $31 per Mentor share.

Upon closing, the transaction is expected to have a dilutive impact to Johnson & Johnson's 2009 earnings per share of approximately $.03 - $.05. The transaction is expected to close in the first quarter of 2009.