Stock index futures added to an already gloomy outlook for Monday, falling further after a key manufacturing barometer showed factories continue to languish in the slumping economy.
The New York Empire Manufacturing Index slumped 9.41 points in May, indicating difficult times in the sector and presenting a headwind for economic growth.
Wall Street has an impressive roll going as we begin a new week: the Nasdaq has chalked up weekly gains in 13 of the past 14 weeks, while the Dow and the S&P 500 have risen in 12 of the past 14 weeks. All three indexes are positive for the year, and the Dow and S&P are on track for their best quarterly gains since the fourth quarter of 1998.
That roll, however, is likely to be interrupted at the open, with Japanese and European stocks lower, and U.S. stock index futures also pointing to a lower open Monday.
The state of the economy remained sharply in focus as International Monetary Fund chief Dominique Strauss-Kahn said that the worst of the global economic crisis may be yet to come.
Meanwhile, financial institutions may be facing tougher capital and liquidity requirements under new rules designed to avoid another financial crisis, the US administration revealed Monday.
And Forbes CEO Steve Forbes told CNBC that the Federal Reserve should stop buying government debt and move its attention to consumer focused areas of the credit market.
Several economic numbers of note are on the day’s calendar: the Empire State Manufacturing Index, a measure of manufacturing activity in New York State, is out at 8:30 am New York time, while the National Association of Home Builders issues its monthly reading of builder sentiment at 1 pm.
Chicago Federal Reserve Bank President Charles Evans speaks on the financial crisis at 9:30 am, while Treasury Secretary Tim Geithner appears at a Time Warner-sponsored economic summit in New York that begins at 8:30 am and lasts through early afternoon.
- Written by Peter Schacknow, Senior Producer and CNBC.com