1. JPMorgan Chase's stock is sinking more than two percent in early trading, after warning in a regulatory filing on Friday that it expects a further downturn in trading revenue in the second quarter. The bank now expects revenue from activities such as fixed-income and equities trading to tumble 20 percent year over year.
Markets revenue decreased 17 percent in the first quarter of the year, driven primarily by a drop in JPMorgan's fixed-income currencies and commodities unit. Bottom line: the first quarter's (Q1) softness is spilling over into Q2, and this is negative for the large banks in general. Separately, Nomura lowered its Q2 estimates to $1.26 from $1.34.
Evercore estimates that a similar 20 percent decline in trading could move Bank of America earnings from 31 cents to 29 cents, and Citigroup from $1.26 to $1.20. Note that Goldman Sachs gets roughly 20 to 25 percent of its revenue from fixed income, commodities, and currency trading.
2. Once again, China's manufacturing numbers came in below expectations. Elsewhere, Japan and London markets are closed. There will be a European Central Bank meeting Thursday, against a backdrop of the European Union cutting its growth forecasts in Europe.
--By CNBC's Bob Pisani