Wall Street set to open up, seeking 4th week of gains

NEW YORK (Reuters) - Wall Street was set to open higher on Monday, trying for a fourth week of gains as investors awaited the Federal Reserve's monetary meeting on Tuesday.

The Fed is expected to tread water at a policy-setting meeting, with economists looking for a renewed promise to keep its portfolio from shrinking but no new steps to ease monetary policy.

The lack of action, however, should not be mistaken for a lack of debate. Policymakers need to decide if and when to launch further large-scale asset purchases to support the sluggish recovery.

"We will continue to hear that from both a fiscal and monetary policy perspective, the government will continue to 'do something' to recharge economic activity," said Peter Boockvar, equity strategist at Miller Tabak + Co in New York.

U.S.-listed shares rose 0.8 percent to $38.32 in premarket trading after the British oil major said it permanently sealed the oil well in the Gulf of Mexico that led to the disastrous oil spill.

On the mergers-and-acquisition front, Netezza Corp jumped 12.9 percent to $27.77 premarket after International Business Machines Corp agreed to buy the provider of data warehouse, analytic and monitoring appliances for $27 per share, or about $1.7 billion. The deal could close in the fourth quarter.

France's Safran SA unveiled a $1.1 billion deal to buy L-1 Identity Solutions Inc and its core biometric identity business. Separately, L-1 will sell its government consulting unit to BAE Systems Plc for nearly $300 million. L-1 Identity was up 20 percent at $11.63 in premarket trade.

Media and entertainment stocks will be eyed after sources told Reuters Indian conglomerate Sahara India Pariwar was in talks to buy the debt of struggling film studio Metro-Goldwyn-Mayer Inc for $1.5 billion to $2 billion.

S&P 500 futures rose 3.4 points and were above 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 added 41 points, and Nasdaq 100 futures gained 7 points.

As of Friday's close, Wall Street has risen for three consecutive weeks, gaining 6 percent.

Bank of America Corp plans to test different pricing packages in a bid to recover some of the $4.3 billion in revenue it expects to lose from new restrictions on bank and credit card fees, the Financial Times reported.

China Unicom Ltd <0762.HK> will launch Apple Inc's latest iPhone in China next Saturday, in a bid to claw back market share with the popular smartphones.

European stocks climbed 0.6 percent in early trade, rising for the first time in five sessions, led by energy and mining shares such as BP, Total SA and Rio Tinto Ltd.

On the earnings front, investors awaited results from Discover Financial Services , while on the macroeconomic front, the National Association of Home Builders/Wells Fargo monthly housing market index will be released at 10 a.m. EDT. Economists in a Reuters survey expect a reading of 14 for September versus 13 in August.

Lennar Corp , the No. 3 U.S. homebuilder, posted a better-than-expected third-quarter profit as deliveries jumped, sending its shares up 5.8 percent to $14.80 premarket.

(Reporting by Angela Moon; editing by Jeffrey Benkoe)

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