U.S. HOT STOCK FUTURES: HOT STOCKS TO WATCH

Among the companies with shares expected to actively trade in Monday's session are Citigroup Inc. (C), Leap Wireless International Inc. (LEAP) and OCZ Technology Group Inc. (OCZ).

Citigroup on Monday reported a second-quarter profit of $4.2 billion, up 42% from a year ago, driven by improved capital markets revenue and loan demand from emerging markets. Results beat analysts' estimates. The results also show progress in the bank's efforts to grow abroad, and to shrink the businesses it no longer deems fit for its global strategy. Shares rose 2.1% to $51.88 premarket.

AT&T Inc. (T) has agreed to buy much smaller rival Leap Wireless for about $1.2 billion in cash, in a move aimed at shoring up the telecom giant's access to the airwaves it needs to offer mobile service. The deal values Leap shares at $15 each, a roughly 88% premium to the company's closing price Friday. Shares more than doubled to $17.35 premarket.

Data-storage provider OCZ Technology Group forecast a 50% drop in first-quarter revenue from a year earlier, primarily due to the continued tight supply of NAND flash memory. Shares fell 4.2% to $1.58 premarket.

Circuits supplier Power Integrations Inc. (POWI) raised its second-quarter outlook for revenues and gross margin, with chief executive Balu Balakrishnan saying that the company saw stronger-than-expected demand in the second quarter. Shares rose 11% to $49.20 premarket.

Voice-services provider Inteliquent Inc. (IQNT) boosted this year's estimates, especially on the profit side, while cutting capital-spending plans. Shares jumped 7.1% to $6.52 in light premarket trading.

 
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Aruba Networks Inc.'s (ARUN) board authorized the repurchase of up to an additional $100 million of stock since the wireless-equipment maker recently completed its initial $100 million stock-repurchase program launched in June 2012.

Pfizer Inc.'s (PFE) rheumatoid arthritis treatment Xeljanz was approved for use in Switzerland, Argentina, Kuwait and the United Arab Emirates.

Rally Software Development Corp. (RALY) and its venture capital backers are offering $70 million in stock, taking advantage of a jump in the business software maker's share price since its April IPO. Rally said it is offering the shares, in part, to increase its public float, which stands at just 39% of the shares outstanding, according to FactSet.

Starboard Value LP, the activist hedge fund that owns a big stake in Smithfield Foods Inc. (SFD), is hiring advisers to help press its case for a different deal for the pork producer than one already agreed to with China's Shuanghui International Holdings Ltd. (SIHL.YY), according to a report from The Wall Street Journal.

Tellabs Inc. (TLAB) has named Lawrence A. Rieger as its acting chief financial officer.

Write to Anna Prior at [e-mail]

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