Futures Drift as Economic Fears Remain
Stock index futures were mostly flat heading into the new week's trading, with the Dow and the S&P 500 begin the new week at their lowest points in two and a half months.
Investors remain wary about earnings season and the economy. Both benchmarks lost ground for the fourth consecutive week last week, and stock index futures are pointing to more of the same ahead of open.
The economic calendar for Monday is relatively light, with the only report of note being the government's monthly budget statement for June. Economists are looking for the government to post a monthly budget deficit of about $86 billion. As for earnings, Dow Transportation component CSX and semiconductor equipment maker Novellus will both report after the closing bell on what's otherwise a light day for earnings releases.
UBS shares rose overseas, on word that the Swiss bank and the U.S. are negotiating on a possible settlement of their tax dispute. The U.S. has been seeking to force UBS to reveal the identities of 52,000 U.S. account holders suspected of using Swiss bank accounts to dodge taxes.
Goldman Sachs shares also were up 3.4 percent premarket after analyst Meredith Whitney raised her rating on the company and a raft of speculation built that the Wall Street titan would report robust second-quarter earnings.
Staying in the sector, CIT Group shares tumbled another 5.2 percent as the commercial lender said it remains in discussions with regulators to improve its capital position.
As talk of a possible second stimulus package continues to circulate, President Obama is urging patience with the one already in place. In a weekend op-ed in the Washington Post, the president said the plan must be given time to work, and that it was always designed as a two-year program.
- Written by Peter Schacknow, Senior Producer, CNBC.com