×

Futures Remain Down After Manufacturing News

Stock index futures continued to trade lower after news a gauge of manufacturing activity in New York state was much lower than expected.

TheEmpire State Manufacturing Indexfell to 11.88 in May from 21.7 in April, the lowest level since December 2010, the New York Federal Reserve reported. The prices paid component of the index, meanwhile, rose sharply to 69.89 from 57.69, the highest since July 2008.

Investors were already nervous about the European debt crisis ahead of talks among euro zone finance ministers and with the arrest of International Monetary Chief Domnique Strauss-Kahnadding to uncertainty.

The euro fell sharply following news of Strauss-Kahn’s arrest on sexual assault charges, but the currency recovered in Monday morning trading in Europe.

Euro zone finance ministers meet on Mondayamid renewed worries about Greek sovereign debt. Ministers were expected to approve a bailout package for Portugal and to pressure Greece to announce further austerity measures in return for additional emergency funding.

Strauss-Kahn’s arrest leaves little prospect of him returning to the helm of the IMF soon, and has also derailed his French election campaign.

In the U.S., NYSE Euronext fell after news Nasdaq OMX Group and IntercontinentalExchange were withdrawing their bid for the exchange after it became clear the U.S. Department of Justice wouldn't approve the deal.

Lowe's sank after disappointing profit results, blaming cold weather and rain for keeping shoppers away.

But JCPenney's gained after delivering better-than-expected results.

In the U.S., the $14.3 trillion debt limitwas expected to be reached on Monday.

The White House and congressional Republicans have not been able to strike a deal over the deficit and the debt ceiling. President Barack Obama has warned that that a failure to raise the debt limit could lead to a worse financial crisis than 2008-09, Reuters reported.

On Tap This Week:

MONDAY: Treasury international capital, housing market index, 13-F filings due.
TUESDAY: Housing starts, industrial production, JPMorgan shareholder meeting, Shell Oil annual meeting; earnings from Home Depot, Wal-Mart, TJX and Dell.
WEDNESDAY: Weekly mortgage applications, oil inventories, FOMC minutes, Fed's Bullard speaks; earnings from Abercrombie & Fitch, BJ's, Target and HP.
THURSDAY: Weekly jobless claims, existing home sales, Philadelphia Fed survey, leading indicators, money supply, Halliburton shareholder meeting, Intel shareholder meeting, McDonald's shareholder meeting, Sallie Mae annual meeting, LinkedIn IPO; earnings from GameStop, Sears and Gap.
FRIDAY: JCPenney shareholder meeting, Macy's shareholder meeting, Time Warner shareholder meeting; earnings from Ann Taylor

More on CNBC.com