Futures Lower Ahead of Earnings, EU Meeting
U.S. stock index futures declined Monday, extending their losses following a sharp selloff in the previous session on the heels of a disappointing jobs report and ahead of Alcoa's earnings report after the bell.
Euro zone finance ministersare scheduled to meet in Brussels to further hammer out plans to reinforce the single currency but experts say their talks may do little more than highlight the limitations of last month's deal to help indebted states and banks.
Shares fell sharply last Friday as another month of tepid jobs growth underlined fears the economy was stalling, although it raised hopes for a further easing in monetary policy by the Federal Reserve.
Chicago Federal Reserve Bank President Charles Evans, one of the Fed's most dovish policymakers, said in remarks prepared for delivery to the Sasin Bangkok Forum on Monday that U.S. policymakers should unleash a new round of bond purchases to bring down unemployment, even at the risk of driving inflation temporarily higher.
China's annual consumer inflationcooled more than expected to 2.2 percent in June, from May's 3.0 percent, giving Beijing more scope to ease monetary policy to support growth without stoking upward price pressures.
The news comes after China's central bank unexpectedly cut benchmark interest rates last week for the second time in a month in a bid to bolster growth.
Consumer credit figures for May will be released at 3 pm ET.
Alcoa kicks off the earnings season after the close. The aluminum giant is seen managing only a 5 cent per share profit for the past three months according to a Reuters poll of analysts.
In corporate news Celgene is one of two companies discussing whether to bid for HumanGenome Sciences , which seeks an alternative to a hostile offer by British drugmaker GlaxoSmithKline , according to sources.
Also on the M&A front, WellPoint will buy rival Amerigroup for about $4.46 billion.
And Campbell Soup plans to acquire Bolthouse Farms for $1.55 billion in cash, in an attempt for the packaged food and beverage giant to make their products healthier.
Meanwhile, PepsiCo will start selling yogurt in the Northeast and mid-Atlantic states later this month, according to the New York Times, in an effort by the beverage giant to curb its reliance on soda sales.
Boeing looks set to start Europe's Farnborough air show with orders from at least two leasing companies—deals that should help the U.S. plane maker consolidate its lead in orders over Airbus this year, the Wall Street Journal said.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
MONDAY: Consumer credit; Earnings from Alcoa
TUESDAY: NFIB small biz optimism index, 3-yr note auction, RIM annual mtg
WEDNESDAY: Weekly mortgage apps, international trade, wholesale trade, oil inventories, 10-yr note auction, FOMC minutes; Earnings from Marriott, Chevron interim results
THURSDAY: Jobless claims, import & export prices, Fed Pres Williams speaks, 30-yr bond auction, Treasury budget, Facebook hearing; Earnings from Fastenal
FRIDAY: PPI, consumer sentiment, Fed pres Lockhart speaks, Dell shareholders mtg; Earnings from JPMorgan, Wells Fargo
More From CNBC.com: