* Merck to buy Idenix, Analog to buy Hittite
* Apple may see heavy action following stock split
* CBOE Volatility index at lowest level since Feb '07
* Futures down: Dow 10 pts, S&P 2.4 pts, Nasdaq 4 pts
(Adds Family Dollar news)
By Ryan Vlastelica
NEW YORK, June 9 U.S. stock index futures
pointed to modest losses at the open on Monday, as a rash of
corporate deals weren't enough reason for investors to keep
buying following a rally that has taken major indexes to
repeated record highs.
* The S&P 500 has risen in 10 of the past 12 sessions,
ending at records six times in the past seven trading days. On
Friday, the benchmark index was lifted by the May payroll
report, which pointed to improving economic conditions, though
it was slightly weaker than expected. While Wall Street's upward
trend looks intact, traders may need new catalysts to maintain
* Merck & Co agreed to buy Idenix Pharmaceuticals
Inc in a deal valued at about $3.85 billion, while
Analog Devices Inc said it would buy Hittite Microwave
Corp in a deal valued at $2 billion.
* Shares of Idenix more than tripled, jumping 237 percent to
$24.34 on heavy premarket volume. Merck dipped 0.8 percent to
$57.40. Hittite popped 29 percent to $78.12.
* Market participants will continue to watch the CBOE
Volatility index, which fell Friday to its lowest level
since February 2007. The "fear index" is almost half of its
historical average, which some analysts worry is a signal that
the market is not fully accounting for issues that could derail
* Apple Inc may see heavy action on Monday, the
first session after a seven-for-one stock split. The tech titan
fell 0.4 percent to $91.89 before the bell. The Nikkei on Friday
reported that Apple was preparing to sell its first wearable
device this October, aiming to produce 3 million to 5 million
smartwatches a month in its initial run.
* S&P 500 futures fell 2.4 points and were slightly
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 fell
10 points and Nasdaq 100 futures fell 4 points.
* About 68,000 S&P 500 e-mini contracts traded hands
as of 8:30 a.m. EDT (1230 GMT), indicating another day of light
trading, which could make the market susceptible to big swings.
* Family Dollar Stores Inc jumped 12.5 percent to
$68.10 in heavy premarket trading after hedge fund billionaire
Carl Icahn late Friday reported a 9.39 percent stake in the
company, making him the discount retailer's largest shareholder.
* Tyson Foods Inc said it reached a "unilaterally
binding offer" to buy Hillshire Brands Co for $8.55
billion, including debt, beating out Pilgrim's Pride Corp
. Hillshire rose 4.9 percent to $61.83 before the bell.
(Editing by Bernadette Baum)