Futures pared gains Monday after a gauge of manufacturing in New York State showed the sector contracted for the third consecutive month in August.
The New York Empire State manufacturing index fell to minus 7.72, their lowest level since Nov. 2010, according to the New York Federal Reserve. Economists polled by Reuters had expected a reading of zero.
The National Association of Home Builders/Wells Fargo is also set to issue its housing market index for August at 10:00 am in New York, with analysts’ expectations on briefing.com suggesting the index will remain unchanged from the prior month.
European investors were awaiting the results of a meeting between Germany’s chancellor Angela Merkel and French president Nicolas Sarkozy on Tuesday, where they are expected to discuss the ongoing euro zone debt crisis. Both leaders came under increasing pressure over the weekend as Italy and Britain called for them to agree to move forward on greater European fiscal unity and a European Central Bank backed Euro bond.
The weekend also saw Robert Zoellick, president of the World Bank, warn that world markets had entered a ‘new danger zone’ and said investors had lost confidence in the economic leadership of several key countries.
Motorola Mobility surged after Google said it will acquire the wireless phone maker for about $12.5 billion in cash, a move to bolster the Android mobile phone software.