Futures Hold Losses After Retail Sales; Citi Gains
U.S. stock index futures remained in negative territory Monday, following a weaker-than-expected retail sales report and after stocks staged a sharp rally in the previous session, snapping six-day losing streak.
Citigroup posted quarterly earnings that topped expectations, but revenue was slightly lighter than expected. Still, shares rallied in pre-market trading. (Read More: Dennis Gartman—Now’s the Time to Buy Banks)
Citigroup's earnings followed after Wall Street cheered better-than-expected reports from both JPMorgan and WellsFargo last week.
Several companies, especially in the tech sector, have warned on profits in recent weeks. Negative to positive earnings guidance for the second quarter is 3.3 to 1, the worst since 2008, according to data from Thomson Reuters.
On the economic front, retail sales declined 0.5 percent in June, according to the Commerce Department, falling for the third-consecutive month. Analysts surveyed by Reuters had expected a gain of 0.2 percent.
Also on the economic front, a gauge of manufacturing in New York state rebounded in July to 7.39 from 2.29 in June, according to the New York Fed's "Empire State" index. Economists had expected a reading of 4, according to a Reuters poll.
Market focus this week will be on Federal Reserve Chairman Ben Bernanke as he gives his semiannual report before the Senate Banking Committee on July 17 and House Committee on July 18. Investors will listen for any hints of further stimulus measures.
The Commerce Department will release business inventories data for May at 10 pm ET. Analysts polled by Briefing.com predict inventories rose by 0.2 percent, down from 0.4 percent in April.
GlaxoSmithKline is expected to announce a hostile takeover of biological research firm Human Genome .
Also on the M&A front, Par Pharmaceutical skyrocketed after private-equity firm TPG said it would acquire the generic drug company for $1.9 billion, or $50 a share.
Comcast bought out Microsoft's 50 percent stake in MSNBC.com for a reported $300 million to assume full control of the news website. Comcast is the parent company of NBCUniversal.
European shares edged downas investors took profits on a 6-week run of gains. Market participants cited concerns the ongoing euro zone debt crisis will impact on second-quarter earnings. (Read More: Why Investors Cannot Ignore Greece)
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
MONDAY: Business inventories
TUESDAY: CPI, treasury int'l capital, industrial production, housing market index, Ben Bernanke speaks, Cleveland Fed Pres speaks, Google Ideas conf.; Earnings from Coca-Cola, Goldman Sachs, J&J, Mattel, Intel, Yahoo, CSX
WEDNESDAY: Weekly mortgage apps, housing starts, Ben Bernanke speaks, Fed's Beige Book; Earnings from BofA, Abbott Labs, Honeywell, PNC Bank, USBancorp., AmEx, IBM (tentative), Qualcomm, Ebay, Yum Brands
THURSDAY: Jobless claims, existing home sales, Philadelphia Fed survey, leading indicators; Earnings from Morgan Stanley, Novartis, Philip Morris, Travelers, Verizon, AutoNation, BB&T, Blackstone, Nokia, Southwest Airlines, Google, Microsoft, AMD, Capital One, Chipotle, ETrade, Sandisk
FRIDAY: Fender and Kayak trading debut; Earnings from GE, Schlumberger, Xerox
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