Wall Street remains on edge. Stocks (^DJI, ^GSPC, ^IXIC) are having a hard time making headway in early trading as earnings season winds down and talk from Fed officials ramps up.

In a speech in Beijing, St. Louis Fed President James Bullard said the strength in the labor market may put upward pressure on inflation and increase the likelihood of higher interest rates. Indeed, San Francisco Fed President John Williams said this morning there could be two or three rate hikes this year.

And Boston Fed President Eric Rosengren told The Financial Times on Sunday that the US is on the verge of meeting most of the conditions the Federal Reserve has set to increase interest rates next month.

Mega-merger

Monsanto (MON) shares shot up in early trading after Germany's drugs and chemicals group Bayer confirmed that it's interested in buying the US agricultural giant for $62 billion in cash. That translates to $122 dollars a share, a 37% premium based on Monsanto's closing price on May 9 before talk of a takeover first surfaced.



Tribune Publishing (TPUB) shares fell in early trading. The owner of the Los Angeles Times and the Chicago Tribune rejected Gannett's second takeover offer of $864 million dollars, but said it would allow the USA Today publisher access to some confidential corporate information. However, at the same time, Nant Capital said it would invest $70.5 million dollars in Tribune for a stake of about 13%, which would make Nant Capital the second-largest shareholder.





Private equity firm Ares Capital (ARES) is buying lender American Capital (ARCC) in a deal valued at $3.4 billion.

General Electric (GE) has inked more than $1.4 billion worth of deals with Saudi Arabia. This comes as the country looks to wean itself off from its dependence on oil by 2030.

Fiat Chrysler (FCAU) shares headed in reverse ahead of the open after a German newspaper reported that the automaker used illegal software to manipulate emissions tests. Fiat Chrysler denies the allegations and said all its vehicles comply with EU emission rules.

Arms embargo lifted

The US is lifting its arms embargo with Vietnam, in a development that President Barack Obama said will pave the way for better relations between the two countries. Vietnam still has to meet certain requirements in order to purchase weapons, but the agreement will help Vietnam upgrade its weaponry as tensions rise with China.

Boeing (BA) already announced a $11.3 billion deal with VietJet for 100 Boeing 737 MAX 200 jets.

Battle for media empire

The battle is heating up over the media empire Viacom (VIAB), with media mogul Sumner Redstone looking to finalize new trustees after removing two associates, including Viacom CEO Philippe Dauman, from his trust. Now, Dauman and board member George Abrams are fighting back with litigation challenging their dismssals from the trust.