S&P 500 futures rose 3.7 points to 1,028.90 and Nasdaq 100 futures added 4 points to 1,639.50. Futures on the Dow Jones Industrial Average rose 38 points. U.S. stocks rallied on Friday after existing-home sales rose more quickly than forecast and as Federal Reserve Chairman Ben Bernanke said the global economy is starting to emerge from recession. The S&P 500 closed at a 10-month high after the 1.9% advance. At the same Jackson Hole, Wyo. conference where Bernanke spoke on Friday, central bankers who spoke during the weekend were cautious on the prospects of an economic recovery and gave no indication of tightening. "The Federal Reserve's Jackson Hole conference concluded with comments suggesting cautious optimism on the economic outlook -- the Fed, perhaps, offering more optimism, and the European Central Bank stressing the caution a little more," said Paul Donovan, an economist at UBS. Nouriel Roubini, the noted bear, said in an op-ed in the Financial Times that the risk of a double-dip recession is rising and said policymakers face risks whether they stop loose monetary and fiscal policy soon. If they act quickly, they could undermine recovery and tip the economy back into stagflation, but if they don't act soon enough, "bond market vigilantes will punish policymakers" and long-term government bond yields and borrowing rates would rise. While the world's major central banks refrain from rate hikes, the Bank of Israel, however, may lift its base rate on Monday. Government spending also is in the limelight, with the "cash for clunkers" program due to expire tonight and as some called at the Jackson Hole conference for spending to be reined in. On the company front, Procter & Gamble (PG 53.58, +0.56, +1.06%) may sell its prescription drug business for $3 billion to Warner Chilcott (WCRX 16.06, +0.49, +3.15%) , The Wall Street Journal reported, citing people familiar with the matter. BBVA (BBV 17.18, +0.55, +3.31%) rose 1.7% in Madrid as the Spanish bank acquired $12 billion of assets from failed U.S. bank Guaranty Financial and as it was upgraded by J.P. Morgan to overweight from neutral. Rival Banco Santander (STD 15.05, +0.43, +2.94%) also was upgraded by J.P. Morgan. International markets were generally strong. Kyocera and Canon helped the Nikkei 225 rise 3.3% while Rio Tinto and BHP Billiton helped the pan-European Dow Jones Stoxx 600 rise 0.8%. Oil futures slipped 32 cents a barrel while the dollar index, a measure of the greenback against a basket of currencies, rose 0.2%.

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