By Sara Sjolin, MarketWatch

Yahoo inches higher on Verizon deal

U.S. stock futures struggled for direction on Monday, as investors stayed cautious ahead of a busy news week with earnings kicking into high gear and more than a dozen central banks holding policy meetings.

The Dow Jones Industrial Average rose 5 points to 18,484, while those for the Nasdaq-100 index slipped 0.50 points to 4,656.75.

Futures for the S&P 500 index gained 0.60 point to 2,168, set to extend its run into record territory. The benchmark closed at an all-time high on Friday (http://www.marketwatch.com/story/us-stocks-poised-for-a-return-to-winning-ways-2016-07-22), boosted by a rally in the telecom and utilities sectors.

"Markets are starting off a potentially pivotal week in a cautious approach as traders choose to keep their powder dry ahead of the key risk events later in the week," said Richard Perry, market analyst at Hantec Markets, in a note.

"With economic growth data along with the Fed and the BOJ both announcing monetary policy in the coming days, it seems as though traders are currently reluctant to take too much of a view," he added.

The Federal Reserve kicks off its monetary policy meeting on Tuesday and will announce its decision on Wednesday at 2 p.m. Eastern time. The central bank is widely expected to hold interest rates steady and stop short of signaling a possible rate hike in September because of continued uncertainty about the economic outlook.

"The expectations of a Fed rate hike by the end of the year have faded to zero. In contrary, the market is pricing in more than 50% chances for an interest rate cut in the U.S. by March 2017," said Ipek Ozkardeskaya, senior market analyst at London Capital Group in a note.

Read:What to expect in the Fed statement this week (http://www.marketwatch.com/story/what-to-expect-in-the-fed-statement-next-week-2016-07-22)

The Bank of Japan's rate decision is due on Friday local time and will be closely watched for any hints of more easing in the face of a stronger yen post Brexit and a slowdown in the economy. In total, 15 central banks are scheduled (http://www.marketwatch.com/story/wall-street-braces-for-feeding-frenzy-of-earnings-central-bank-action-2016-07-23) to meet this week.

There were no Fed speakers or major economic data releases on tap in the U.S. on Monday.

Earnings: In earnings, however, Monday was shaping up to be a busier day. Kimberly-Clark Corp.(KMB) and Sprint Corp.(S) were both scheduled to report ahead of the bell, followed by Gilead Sciences Inc.(GILD) and Express Scripts Holding Co.(ESRX) after the market closes.

Movers and shakers: Shares of Yahoo! Inc.(YHOO) rose 0.3% after reports that Verizon Communications Inc.(VZ) has agreed to buy the internet giant for $4.8 billion (http://www.marketwatch.com/story/verizon-agrees-to-48-billion-deal-to-buy-yahoo-2016-07-24). Confirmation of the deal is expected early Monday.

McDonald's Corp.(MCD) slid 5.9% in thin premarket trade after its Japan unit -- which announced a Pokémon Go tie-up last week -- slumped 12% in Tokyo. The decline came after Nintendo Co (7974.TO) warned its smash-hit smartphone game would make a limited contribution to its earnings (http://www.marketwatch.com/story/nintendo-drops-17-after-company-warns-of-limited-boost-from-pokemon-go-2016-07-25).

Read:Wall Street braces for feeding frenzy of earnings, central bank meetings (http://www.marketwatch.com/story/wall-street-braces-for-feeding-frenzy-of-earnings-central-bank-action-2016-07-23)

Other markets: Stocks in Asia closed mostly higher (http://www.marketwatch.com/story/hong-kong-stocks-retreat-after-entering-bull-market-territory-2016-07-24), while European markets also advanced for the most part.

The dollar dropped against most rival currencies (http://www.marketwatch.com/story/dollar-steadies-as-investors-wait-for-fed-bank-of-japan-meetings-2016-07-25), with the ICE Dollar Index down 0.2% at 97.316. Oil prices dropped and gold most other metals declined.

(END) Dow Jones Newswires

July 25, 2016 05:37 ET (09:37 GMT)