Stocks rose early on Monday, extending Friday's rally on news of the $34bn megamerger of Wells Fargo and Norwest.

Around 10 a.m. EDT (1400 GMT), the blue-chip Dow Jones industrial average was up 45.34 points, or 0.5%, at 9,082.80, following Friday's 167-point rise.

The Nasdaq composite index rose 2.68 points to 1,785.60.

However, gains were limited, dealers said, because the market was seeking direction.

"There is a lack of anything to push it either way," said Jay Meagrow, institutional trader at McDonald & Co.

Financial stocks were modestly firmer in early trade, helping boost the Dow.

Wells Fargo was up only 5/8 to 363-7/8 after trading up to 390 before the opening bell.

Dow component J.P. Morgan & Co. Inc. rose 1 to 123-3/8 and American Express Co. rose 1-3/16 to 105-11/16.

Philip Morris, another blue-chip company, advanced 1-7/16 to 40-1/8 after the tobacco company said Friday it had settled a shareholder lawsuit.

It was the most actively traded stock on the New York Stock Exchange.

Intel Corp. fell 1/2 to 69-5/16 in heavy trade.

The Federal Trade Commission was widely expected to file an antitrust lawsuit against the world's biggest computer chip maker Monday.