US-STOCKS-Wall Street eyes fourth week of gains, M&A a factor

                                

                                
 * AT&T to acquire wireless spectrum licenses
                                
 * Investors eye fourth week of gains
                                
 * Futures up: Dow 37 pts, S&P 5 pts, Nasdaq 11 pts
                                
 * For up-to-the-minute market news see [STXNEWS/US]
                                
 By Edward Krudy
                                
 NEW YORK, Dec 20 (Reuters) - U.S. stock index futures rose
on Monday as Wall Street looked to extend three weeks of gains
as some investors said shares could rally in a thinly traded,
holiday-shortened week.
                                
 Mergers and acquisitions picked up, a sign that some
companies see value in the market. AT&T Inc <T.N> said it would
acquire wireless spectrum licenses from Qualcomm Inc <QCOM.O>
in a deal worth $1.9 billion.
                                
 Stocks have rallied strongly this month, with the S&P 500
index up more that 5 percent in December to a two-year high.
                                
 "Although investor participation may be limited, the
outlook is for a strong finish into year-end," said Andre
Bakhos, director of market analytics at Lek Securities in New
York. "Any news that would move the market lower would have to
be of a high magnitude."
                                
 S&P 500 futures <SPc1> rose 5 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> gained 37
points, while Nasdaq 100 futures <NDc1> fell 1 points.
                                
 U.S. markets will be closed on Friday to observe the
Christmas Day holiday the following day.
                                
 EarthLink Inc <ELNK.O> said it will acquire One
Communications Corp for $370 million, and Raytheon Co <RTN.N>
will acquire Applied Signal Technology Inc for $490 million.
Applied Signal shares rose 7.7 percent to $37.70 <APSG.O> in
premarket trade.
                                
 Underscoring expectations of strong holiday spending, U.S.
online sales are up 12 percent to $27.5 billion so far this
season compared with a year ago, according to research firm
comScore. For details, see [ID:nN19285412]
                                
 Adobe Systems Inc <ADBE.O> reports quarterly results later
in the day. Analysts expect the software maker to earn 52 cents
per share, up from 39 cents a year ago.
                                
 Genzyme Corp <GENZ.O>, fighting off a hostile $18.5 billion
bid from Sanofi-Aventis SA <SASY.PA>, will take another stab at
persuading investors its experimental multiple sclerosis drug
is worth more than Sanofi's projections. [ID:nN19134052]
                                
 Food and beverage company Sara Lee Corp <SLE.N> has been in
talks to sell itself to Brazilian meat producer JBS <JBSS3.SA>,
but the two companies are at odds over price, a source said.
[ID:nN19146410]
                                
 In European equity markets, the FTSEurofirst 300 <.FTEU3>
rose 1 percent in early trade, with energy shares supported by
firmer crude prices <CLc1> as cold weather in Europe and parts
of the United States boosted demand for heating fuel. [.EU]
  (Editing by Padraic Cassidy)