US STOCKS-Index futures edge lower as dollar gains

* Yahoo gains after WSJ reports AOL eyes tie-up

* Intel up after stock raised to “buy”

* Futures dip: S&P 3.2 pts, Dow 14 pts, Nasdaq 6.25 pts

* For up-to-the-minute market news see [STXNEWS/US]
(Adds analyst quote, updates market activity)

By Edward Krudy

NEW YORK, Nov 8 (BestGrowthStock) – Wall Street was set to ease
from recent highs on Monday as a rise in the U.S. dollar
weighed on commodity prices and looked set to pressure natural
resource stocks.

The dollar has traded in a strong inverse relationship to
U.S. equities recently. An unwinding of dollar short positions
that began after solid U.S. jobs data last Friday gathered
pace, while concerns over euro zone debt hurt the euro. The
dollar rose 0.6 percent against a basket of currencies.
(.DXY: ).

Peter Jankovskis, co-chief investment officer at OakBrook
Investments LLC in Lisle, Illinois, pointed to light volume in
the futures trading. “I don’t think that (the strong dollar) is
a strong enough driver to dominate trading,” he said. “I think
there will be somewhat of a reversal as the day goes on.”

Metals prices slipped as the dollar rose, while oil futures
fell 0.4 percent toward $86 a barrel, easing from two-year
highs earlier in the session. Gold slipped for the first time
in three sessions but remained near record highs. For details,
see [ID:nN07170469]

Shares of Alcoa Inc (AA.N: ), the largest U.S. aluminum
producer, fell 0.7 percent to $13.90 in premarket trade, while
Exxon Mobil Corp (XOM.N: ) was down 0.3 percent to $69.80.

S&P 500 futures (SPc1: ) fell 3.2 points and were below 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: ) fell 14
points, and Nasdaq 100 futures (NDc1: ) lost 6.25 points.

U.S. stocks (Read more about the stock market today. ) have risen for five straight weeks and
surpassed levels not seen since before the bankruptcy of Lehman
Brothers. The rally has been helped by Republican gains in the
U.S. midterm elections and the U.S. Federal Reserve’s plan to
buy $600 billion of government debt.

In corporate news, AOL Inc (AOL.N: ) is exploring strategic
options, which include a possible tie-up with Yahoo Inc
(YHOO.O: ), and has retained financial advisers to do so, the
Wall Street Journal reported, citing unnamed sources. Yahoo’s
shares rose 1.4 percent to $16.50. [ID:nSGE6A7068]

McDonald’s Corp (MCD.N: ) said global October sales at
established restaurants rose 6.5 percent, helped by new
products, its dollar menu and renovations. The shares fell 0.6
percent to $78.80. [ID:nN08202623]

Intel Corp (INTC.O: ) added 1.2 percent to $21.50 before the
bell after UBS raised the stock’s rating to “buy” from
“neutral” and estimated the sector will see another couple of
quarters of inventory adjustments globally. [ID:nWNAB0678]

Saudi Arabian Airlines ordered 12 Boeing Co 777-300
“Extended Range” planes for $3.3 billion, in addition to eight
787 Dreamliners, Boeing (BA.N: ) said Sunday. However, Boeing’s
shares traded down 1.4 percent to $70.29 premarket.
[ID:nN07170469]

The S&P 500 faces strong resistance at around 1,228, a key
retracement of the benchmark’s slide from its historic high in
2007 to the 12-year low in March 2009. The S&P closed at
1225.85 on Friday, a new two-year high.
(Reporting by Edward Krudy; editing by Jeffrey Benkoe)

US STOCKS-Index futures edge lower as dollar gains