US Markets

US stock futures mull China data ahead of ISM

U.S. stock index futures tracked Asian and European equities higher on Monday, after indifferent data from China raised expectations of further stimulus in the world's second biggest economy.

Two surveys showed Chinese factory activity picked up slightly in May, but remained sufficiently weak to maintain hopes of a further interest rate cut in the coming weeks. The Shanghai Composite closed 4.7 percent higher on the news.

Shanghai's volatile market

Few major companies are due to report earnings on Monday, bar PVH after the close of markets.

Personal income increased 0.4 percent in April. Consumer spending was unchanged from the prior month.

Other economic data due include the Institute of Supply Management manufacturing index for May and construction spending for April.

Later in the week, all eyes will be on Friday's labor market report.

"If that (nonfarm payrolls) shows a similar pattern to that seen in recent months—downward pressure on unemployment as jobs growth remains respectable—investor expectations about the timing of the lift-off to the Federal Funds rate will further center on September," said Kit Juckes, macro strategist at Societe Generale in a research note on Monday.

Nobel Prize-winning economist Robert Shiller told CNBC on Monday that the U.S. Federal Reserve should consider lifting interest rates sooner than later, in order to tackle speculative bubbles in the housing and stock markets.

Intel agreed to buy Altera for $16.7 billion as the world's biggest chipmaker seeks to make up for slowing demand from the PC industry, Reuters said.

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Microsoft announced Windows 10 will be released on July 29. The company had previously said the updated operating system would be released "this summer."

Apple has filed for a potential yen-based note offering in 2020, with minimum denominations of 100 million yen. The total size of the possible offering was not disclosed in the Securities and Exchange Commission filing.

Other stocks to watch on Monday include Bristol-Myers Squibb, which sank 6 percent on Friday after it unveiled findings for its immunotherapy Opdivo that disappointed investors.

CNBC's Peter Schacknow contributed this report.