Small caps to open flat

Small-cap stocks are expected to open near steady levels after a relatively tame overnight session. Concerns on the financial side of things could be countered by solid earnings news. The Russell 2000 (NYSE:IWM) was basically flat in after-hours trading, so an opening near Friday’s close in the 710 zone appears likely.

Even though Congress approved the rescue plan for government-sponsored mortgage firms Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) on Saturday, enthusiasm from that news was overcome by other news that regulators seized a couple of small U.S. banks this weekend.

Crude oil futures were up about $1 dollar a barrel heading toward the U.S. stock market opening, lifted by attacks on oil pipelines in Nigeria. Grains prices were also called solidly higher, so commodity price inflation will start the week out on a firm note.

On the earnings front, Kraft Foods Inc. (NYSE:KFT) topped the Street’s estimate and raised forward guidance, which sparked a 3% rally in the stock during overnight trading. There will be plenty of big name companies to study this week, . . .

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