Futures tumbled Monday as investor sentiment was dragged lower amid renewed concerns over Greek debt and disappointment over the results of a meeting of European finance ministers over the weekend.
European shares also dropped sharply after euro zone leaders said the next tranche of Greece aid will not be given unless the debt-ridden nation meets stricter deficit targets, spreading fears of a possible default.
Greek officials said they will be holding a teleconference with the EU, IMF and ECB at 10am ET to discuss Greece's compliance with the terms of the bailout agreement.
Meanwhile, Greek Prime Minister George Papandreou canceled a visit to the U.S. to chair a cabinet meeting on Sunday adding to investor concerns.
On the economic front, the National Association of House Builder’s Housing Market Index for September is due out at 10:00am ET. Analysts on website briefing.com said they expected the index to remain unchanged from the prior month.
In corporate news Netflix is separating its movie streaming business and its DVD by mail service, which will be called Qwikster, chief executive Reed Hastings said in a company blog post.
Meanwhile, Swiss bank UBS has kicked off an internal investigation into the catastrophic failure of its risk systems after raising the amount it lost on rogue equity trades to $2.3 billion.
On the earnings front, Lennar posted a 31 percent profit decline amid fewer new home deliveries and higher costs.
President Barack Obama is expected to announce plans tocut the deficit at 10.30 am ET. The plan includes $3 trillion in deficit cuts over 10 years but also $1.5 trillion in tax rises on companies and the wealthiest. The proposals include the “Buffet Rule” which will set a minimum tax rate on millionaires, a proposal that is likely to be fiercely resisted by the Republican controlled Congress.
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On Tap This Week:
MONDAY: Housing market index, Nike shareholder's mtg
TUESDAY: Housing starts, FOMC mtg begins; Earnings from AutoZone, ConAgra, Oracle, Adobe
WEDNESDAY: Weekly mortgage apps, existing home sales, oil inventories, FOMC mtg announcement, Coca-Cola analyst mtg; Earnings from General Mills, Bed, Bath & Beyond
THURSDAY: Jobless claims, FHFA home price index, leading indicators, Geithner speaks at Global Economy Summit; Earnings from Discover Financial, FedEx, Nike
FRIDAY: IMF/World Bank annual mtg; Earnings from KBHome
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