“Everyone had false hope that the G7 conference call would turn into something, [but] nothing came out of it,” said Art Cashin, director of floor operations at UBS Financial Services. “Today could be turnaround Tuesday because we had been a bit oversold, but I don’t know if anyone wants to move in front of the ECB tomorrow.”
European shares closed mixed in thin trading. The U.K. market is still closed due to the extended holiday for the Queen’s Diamond Jubilee. (Slideshow: Highlights From the Queen's Diamond Jubilee)
Ratings agency Egan-Jones downgraded the U.K.'s credit ratingfrom double-A to double-A minus late Monday afternoon.
On the M&A front, Oracle said it will acquire Collective Intellect, which helps businesses to get information about consumers from Facebook and Twitter pages. (Disclosure: CNBC and CI announced a strategic content collaboration earlier this year.) This comes a day after rival Salesforce.com announced a deal to purchase social media marketing company Buddy Media.
Homebuilders including Pulte , Lennar and DRHorton jumped after a report from CoreLogic said home prices climbed in April.
Hovnanian is scheduled to post earnings after the closing bell tonight.
Investors will also look ahead to the Fed’s April edition of the Beige Book, its region-by-region assessment of the U.S. economy, which is out on Wednesday.
Meanwhile, Australiacut interest rates for the second successive month, with investors hoping this will herald stimulus measures from other governments around the globe.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter:
Coming Up This Week:
WEDNESDAY: Weekly mortgage apps, ECB announcement, productivity and costs, oil inventories, Fed's Beige Book, Fed's Lockhart speaks, Fed's Lockhart speaks, Fed Basel III vote
THURSDAY: Bank of England announcement, jobless claims, Bernanke speaks, quarterly services survey, Fed's Lockhart speaks, Fed's Kocherlakota speaks, consumer credit; Earnings from Lululemon Athletica, JM Smucker
FRIDAY: International trade, wholesale trade, Fed's Kocherlakota speaks, Chesapeake annual meeting
More From CNBC.com: