In an address to the nation Sunday night, President Barack Obama called bin Laden's death, "the most significant achievement to date in our nation's effort to defeat al Qaeda."
"It was such an incredible victory that there is going to be a very, very good mood on Wall Street and throughout the country," said Jeffrey Sica, president and chief investment officer at SICA Wealth Management.
While the news should boost stocks first thing Monday morning, Sica said Osama bin Laden's death is not enough to sustain a long rally.
In early tradiDow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were up about 0.5% ahead of the opening bell. Futures measure current index values against perceived future performance.
Meanwhile, oil prices retreated with crude for June delivering sliding $1.37, or more than 1%, to $112.56 a barrel.
"Oil can be a globally emotional, reactive market and any time that geopolitical risk is reduced there is less fear in the oil markets," said Derek Hoffman, chief executive and founder of Wall St. Cheat Sheet. "The news that there was a successful effect to find, capture and kill the number one terrorist in the world is a positive sign."
Gold prices also backed off their highs Monday. Gold futures for June delivery fell $5.70 to $1,550.70 an ounce, after hitting an intraday high of $1,577.40 an ounce.
Stocks have headed higher since the beginning of the year amid strong earnings. Despite jitters about the economy and concerns about inflation, April was the best month for the three indexes since December.
Shares of TiVo (TIVO) were up almost 18% in premarket trade after DISH Network Corporation (DISH, Fortune 500) and EchoStar Corporation (SATS) announced they will pay TiVo $500 million to settle an ongoing patent dispute.
Separately, DISH reported earnings per share of $1.22 for the quarter ended in March, easily topping forecasts. Also, DISH said it gained approximately 58,000 net subscribers during the quarter. Shares of DISH were up almost 8% in premarket trade.
Currenciesandcommodities:The dollar fell against the euro, but gained strength against the Japanese yen and the British pound.
Bonds: The price on the benchmark 10-year U.S. Treasury dipped, pushing the yield up to 3.31%.