Stock futures declined somewhat this morning, indicating stocks could start flat to lower. The concerns of from last week regarding high bond yields and global interest rates haven't abated.

Last week stocks sharply declined for three consecutive days, declining by some 3%, only to rebound on Friday and finish the week down 1.5-1.9%. This coincided with Treasury prices falling across the board and the yield on the 10-year benchmark note rising above the 5% level, reaching as high as 5.25%, but settling Friday around 5.10%.

This morning, yields continued their climb, with the yield on the 10-year note rising to around 5.13%.
Following U.S. markets from Friday, Asian stocks closed higher and European stocks are also rising for the first time in six days. European markets are also up on renewed takeover speculation that lifted mining and steel companies.
Today, no economic data of note is due for release. The week ahead, however, is busy with Thursday bringing the producer price index report and Friday the consumer price index; both important inflation measure at the wholesale and consumer level.

Another reason stock markets are declining is the outlook for U.S. corporate profits as the second quarter is nearly over. According to Thomson Financial, earnings at S&P 500 companies are expected to grow just 3.8% in the second quarter, with companies depended on consumer spending feeling the effect of the sluggish housing market. While there could be revisions, earnings growth will likely again be below 10%.

In corporate news:

According to The Wall Street Journal, General Electric Co. (NYSE: GE) and Microsoft Corp. (NASDAQ: MSFT) discussed joining forces for a competing bid for Dow Jones & Co. (NYSE: DJ), following News Corp's (NYSE: NWS) but of $60 per share. GE would want to combine the Dow Jones with its NBC Universal unit.

According to The Wall Street Journal, Google Inc. (NASDAQ: GOOG) has complained to antitrust officials that Microsoft Corp.'s (NASDAQ: MSFT) new operating system, Windows Vista, puts rivals at a disadvantage as it hinders use of its desktop-search service.