U.S. stock futures headed lower Monday after the weekend decision by Microsoft Corp. to withdraw its US$47.5 billion bid for Yahoo Inc.

Financial shares could move after Berkshire Hathaway Chairman Warren Buffett said his firm will consider investing in the insurance business of Britain’s Royal Bank of Scotland. Buffett also warned that housing-market weakness isn’t over yet and predicted more losses for banks, while noting that the United States is in a recession

In Canadian M&A news, DundeeWealth Inc. has struck a deal to buy 60% of Aurion Capital Management Inc., a Toronto institutional money manager with $4.5 billion under management.

Meanwhile, Saxon Energy Services Inc. confirmed an agreement to be taken over by global energy services provider Schlumberger Ltd. and private equity group First Reserve Corp. The price is $7 per share, representing a value of $592 million for the Calgary oilfield services provider.

In today’s earnings news, Ensign Energy Services Inc. reported first quarter earnings of $81.8 million, down 20% from $102.3 million a year earlier.

There are no major economic data releases from Statistics Canada today.

The Canadian dollar opened at US98.23¢.

South of the border, the U.S. Institute for Supply Management is expected to release its non-manufacturing index at 10:00 ET.

Overseas, tock markets in Tokyo and London were closed for holidays.

On Friday, a better-than-expected jobs data pushed U.S. indexes higher, while commodities gains boosted the S&P/TSX composite index to close up 214.47 points, or 1.52%, at 14,280.28.

The junior S&P/TSX Venture composite index closed up 31.60 points, or 1.28%, at 2495.51.

In New York, the Dow Jones industrial average closed up 48.20 points, or 0.37%, at 13,058.20. For the week, the Dow rose 1.29%.

The S&P 500 gained 4.56 points, or 0.32%, to close at 1,413.90. The S&P moved ahead 1.15% for the week.

The tech-heavy Nasdaq composite closed down 3.72 points, or 0.15%, at 2,476.99. The Nasdaq gained 2.23 overall for the week.