Tariff reversal; United Technologies and Raytheon; UK GDP - CNN

US stock futures point higher. The Dow is set to rise 85 points, or 0.3%. The Nasdaq and S&P 500 could jump 0.4% and 0.3%, respectively.

European markets opened up after stocks in Asia posted significant gains. Britain's FTSE 100 rose 0.5% in early trading, and France's CAC 40 climbed 0.2%. Hong Kong's Hang Seng shot up 2.3%, while Japan's Nikkei rallied 1.2%.

President Donald Trump on Friday called off tariffs on goods from Mexico that would have gone into effect this week.

"I am pleased to inform you that The United States of America has reached a signed agreement with Mexico," Trump tweeted Friday. "The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended."

The tariffs, which would have started at 5% and could have eventually climbed as high as 25%, were opposed by many members of the president's own party and businesses that move goods back and forth across the border.

The reversal is good news for US stock indexes. The Dow, S&P 500 and Nasdaq are coming off their best weeks of the year, boosted by investor optimism that the Federal Reserve could be on the verge of cutting interest rates.

2. United Technologies and Raytheon: United Technologies (UTX) and Raytheon (RTN) have agreed to merge, creating an aerospace and defense powerhouse.

The companies currently have a market value of $166 billion. The deal, announced Sunday, is one of the biggest corporate mergers of 2019.

It won't include United Technologies' elevator and air conditioning units, which the company will spin off in 2020.

Shares of Raytheon (RTN) are tracking 2.8% higher in premarket trading, while stock of United Technologies (UTX) could leap 5%.

In other deal news: UK travel business Thomas Cook said Monday that it's looking at selling its tour operator business to China's Fosun. Thomas Cook shares in London rose more than 10% on the disclosure.

3. UK GDP: GDP in the United Kingdom fell by 0.4% in April as Brexit uncertainty continued to take a toll.

The Office for National Statistics pointed to a steep drop in car production due to planned shutdowns put in place around the original Brexit deadline.

It also cited broader manufacturing weakness. Stockpiling faded as the date of Britain's departure from the European Union was pushed back again.

4. Coming this week:
Monday — US job openings; Chinese trade data; UK GDP
Tuesday — Uber (UBER) CEO Dara Khosrowshahi at the Economic Club of Washington; Dave & Busters (PLAY) earnings; Tesla (TSLA) shareholder meeting; E3 gaming conference begins
Wednesday — US and Chinese inflation data; US oil inventories; Lululemon (LULU) earnings
Thursday — German inflation data; Tesco (TSCDF) and Broadcom (AVGO) earnings; OPEC report; European Union industrial production
Friday — US and Chinese retail sales; University of Michigan consumer sentiment

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