US stocks head for lower open after Microsoft pulls Yahoo bid

Wall Street headed for a lower open Monday, with investors downbeat about Microsoft Corp.'s withdrawal of its bid for Yahoo Inc. over the weekend.

Microsoft had offered $43.7 billion to buy Yahoo Inc., but scrapped the bid late Saturday after the software maker and the Internet provider could not agree on a sale price.

The failed deal came as a disappointment to Wall Street, as merger-and-acquisition activity tends to boost shareholder value, and also signals to the broader market that corporate America is optimistic about the future. Yahoo Inc. shares plummeted 22 percent in pre-market trading.

Dow Jones industrial average futures fell 45, or 0.34 percent, to 13,015. Standard & Poor's 500 index futures fell 5.80, or 0.41 percent, to 1,410.00, and Nasdaq composite futures fell 6.25, or 0.31 percent, to 1,984.00.

(Agencies)