Futures point to lower open as traders remember the collapse of Lehman Brothers one year ago. During the first full week of trading in September, the bulls managed solid gains. However, Friday's losses look to continue Monday on concerns about a possible trade war with China. Economic data will be heavy this week, though Monday's calendar is light. However, several Fed speeches will be accompanied by a speech from President Obama on bank reform.

Over the weekend, the government imposed tariffs on Chinese made tires. This came after unions complained that increased imports of Chinese tires were taking away from American jobs. This seems to have led to China launching an anti-dumping investigation into U.S. sales of chicken and auto products. The concern is that any trade related dispute between the two largest economies could create problems in the global recovery.

There haven't been any merger announcements Monday, but rumors have impacted shares of Sprint Nextel (S). A British newspaper reported Sunday that Deutsche Telecom (DT) is looking to purchase Sprint Nextel. This has pushed S shares higher by more than 20 percent to a price near $4.60. DT already owns T-Mobile and by adding Sprint, the company would challenge AT&T (T) as the second largest mobile phone company.

Another strong mover this morning is Salix Pharmaceuticals (SLXP). The company announced that its Rifaximin drug for irritable bowel syndrome met main goals in late stage studies. This news has pushed SLXP shares up more than 50 percent in early trading with the stock now priced near $20.50.

All eyes will be on President Obama this afternoon when the President speaks on the government's plan to unwind its involvement in the financial sector. The speech will also call for global coordination to help prevent a similar crisis in the future. Legislation on regulatory reform in the financial sector has been stalled and the President will try to get this legislation moving again. One year ago, the collapse of Lehman Brothers led to a global recession and Fed leaders and the President would like to see plans in place so that this type of event doesn't happen again.

We could see some volatile trading this week with a number of top tier economic reports on tap, as well as quadruple witching on Friday. Traders will get data on inflation, as well as reports on retail sales, industrial production and housing starts.

Jody Osborne
Senior Staff Writer & Options Strategist
Optionetics.com ~ Your Options Education Site