Futures Slide Amid Global Growth Concerns
U.S. stock index futures were in negative territory Monday after five-straight weeks of gains and as disappointing data from Japan fueled fears of a global slowdown.
Japan’s economy grew a tepid 0.3 percent in the second quarter, much weaker than expectations for a rise of 0.6 percent and a sharp slowdown from growth of 1.3 percent in the previous quarter. (Read More: What Japan Should Do)
And adding to woes over the global economy, Bank of America/Merrill Lynch cut its 2012 growth estimate for China, to 7.7 percent from 8 percent.
However, losses were pared by hopes of further global stimulus measures, with investor optimism boosted late on Friday when the San Francisco Federal Reserve President John Williams advocated a fresh round of bond-buying to decrease unemployment at a faster rate.
And with no economic reports scheduled, investors will look to the rest of the busy week for more direction.
FedEx said it will offer buyouts to U.S. employees in an effort to reduce costs as the economy remains weak.
Google announced it will lay off 20 percent of Motorola Mobility's workforce and will shut down close to a third of the cellphone maker's 94 offices worldwide. Google acquired Motorola Mobility in May.
Barnes & Noble reduced prices on its Nook e-reader and tablet devices ahead of the peak of the back to school season and amid speculation that rival Amazon.com is preparing to launch a new version of its Kindle Fire tablet.
JCPenney slipped after Piper Jaffray cut its rating on the company to "neutral" from "overweight" and slashed its price target to $25 from $50. Meanwhile, Citigroup raised its price target to $28 from $24.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
MONDAY: Kodak patent auction winners announced
TUESDAY: NFIB small biz optimism index, PPI, retail sales, business inventories, 13-F filings due; Earnings from Home Depot, TJX
WEDNESDAY: Weekly mortgage apps, CPI, Empire state mfg survey, Treasury int'l capital, industrial production housing market index, oil inventories, Fed's Kocherlakota speaks, credit card default rates reported, Facebook lock-up expiration, Forest Labs shareholders mtg; Earnings from Deere, Target, Cisco, Applied Materials
THURSDAY: Housing starts, jobless claims, Philadelphia Fed survey, e-commerce retail sales, Fed's Kocherlakota speaks; Earnings from Wal-Mart, Dollar Tree, Aeropostale, Gap
FRIDAY: Consumer sentiment, leading indicators; Earnings from Ann, JM Smuckers
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