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Futures Flat After Consumer Spending News

CNBC.com
Monday, 30 Apr 2012 | 9:19 AM ET

U.S. stock index futures were largely unchanged Monday after news that Spain slipped into a recession and as investors looked to take a breather following a four-day rally that sent the S&P 500 over its 1,400 milestone.

Spain fell back into technical recessionbut the figure for first-quarter economic performance was better than expected. This comes after Standard & Poor's downgraded the country's sovereign debt last week lowered the credit rating of 16 Spanish banks. European shares were trading lower.

On the economic front, household income climbed 0.4 percent in March, the biggest gain in three months, according to the Commerce Department. Analysts polled by Reuters had expected a gain of 0.3 percent. But consumer spending only edged up 0.3 percent, slightly below an expected gain of 0.4 percent.

This comes after a report that showed U.S. economic growth cooled in the first quarterto 2.2 percent, bolstering the Federal Reserve's case that interest rates should be kept near zero at least though late 2014.

Barnes & Noble skyrocketed after Microsoft said it will invest $300 millionin the bookstore chain's digital and college businesses. The new deal will give Microsoft a 17.6 percent stake in the new unit.

Sunoco soared after Energy Transfer Partners announced it will acquire the oil companyin a cash and stock deal worth $5.3 billion in an aim to focus on transporting more crude oil and refined products on the heels of declining natural gas prices.

'Reckoning' for Markets this Week: Trader
Joe Kinahan, TD Ameritrade, says the markets are due for "some kind of reckoning" this week from Spain or corporate earnings.

China Eastern Airlines said it has agreed to buy 20 new Boeing B777-300ER aircrafts valued at $5.94 billion based on the 2011 price catalogue.

And Pall Corp said it will sell some of its blood collection, filtration and processing product lines to Haemonetics for about $550 million.

In earnings news NYSE Euronext said its profits fell by almost a third in the first quarter due to a difficult trading environment and costs from its failed merger with Deutsche Boerse.

Anadarko Petroleum and Shutterfly are scheduled to post earnings after the closing bell.

Also on the economic front, the Institute of Supply Management Chicago releases its April index of manufacturing activity at 9:45 am. Economists polled by Reuters forecast a reading of 61.0, compared with 62.2 in March. Any reading above 50 indicates expansion while readings below indicate contraction.

—Follow JeeYeon Park on Twitter: @JeeYeonParkCNBC

Coming Up This Week:

MONDAY: Chicago PMI, Dallas Fed mtg survey, farm prices, AmEx shareholders mtg, Boeing shareholders mtg; Earnings from Anadarko Petroleum, Shutterfly
TUESDAY: ISM mfg index, construction spending, auto sales, Under Armour shareholders mtg; Earnings from BP, Pfizer, Sirius XM Radio, Broadcom, CBS, Chesapeake Energy, Motorola Mobility
WEDNESDAY: Weekly mortgage apps, Challenger job-cut report, ADP employment report, factory orders, oil inventories, Pepsi shareholders mtg; Earnings from Comcast, Time Warner, UBS, Barrick Gold, Clorox, CVS, Marathon Oil, MasterCard, Dreamworks Animation, Green Mountain Coffee, Sunoco, Transocean, Visa, Whole Foods
THURSDAY: Jobless claims, productivity and costs, ISM non-mfg index, chain-store sales, Nokia annual mtg, Verizon shareholders mtg; Earnings from GM, Kraft, AIG, LinkedIn
FRIDAY: Government non-farm payrolls, Alcoa shareholders mtg, Berkshire shareholders mtg; Earnings from Berkshire Hathaway

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