By Tanya Agrawal
REUTERS - U.S. stocks looked set to open lower on Monday, after the three major indexes extended their post-election rally and closed at record highs last Friday.
The indexes closed higher for three weeks in a row, with the S&P 500 notching its seventh record close since Nov. 8.
Oil prices were higher in volatile trading after falling as much as 2 percent, recouping the losses as the market reacted to the shaky prospect of major producers being able to agree output cuts at a meeting on Wednesday.
European shares were pressured by the drop in oil prices. Investors also awaited a referendum on constitutional reform in Italy on Sunday.
The dollar index extended its losses on Monday, retreating from its highest levels since 2003, as U.S. Treasury yields eased from recent peaks.
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The dollar had been on a tear on expectations that President-elect Donald Trump's infrastructure spending plans would boost inflation. The high likelihood of an interest rate hike in December also helped the rally.
The U.S. Federal Reserve meets on Dec. 13-14, with traders pricing in an 89 percent chance of a hike.
"I think today's pullback is twofold - the uncertainties over an OPEC deal, and the market subject to a normal technical pull back," said Peter Cardillo, chief market economist at First Standard Financial in New York.
"The fact that investors have a full plate to chew on this week and the absence of major economic news today offers investors a chance to take some light profit taking ahead of a barrage of macro news and the OPEC meeting."
S&P 500 e-minis were down 5.75 points, or 0.26 percent, with 158,322 contracts changing hands at 8:33 a.m. ET (1333 GMT).
Nasdaq 100 e-minis were down 7.25 points, or 0.15 percent, in volume of 22,283 contracts.
Dow e-minis were down 53 points, or 0.28 percent, with 32,109 contracts changing hands.
ConocoPhillips was up 1.3 percent at $46.36 in premarket trading after Goldman Sachs raised its price target on the stock.
Amazon was down 0.4 percent at $777.10 after Citigroup reduced its price target on the stock.
Time Inc jumped 9.8 percent to $15.15 after the New York Post reported that the publisher had rejected a takeover bid from billionaire investor Edgar Bronfman Jr.
(Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)