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Futures Fall Amid Renewed Greece Concerns

Stock index futures slumped Monday, tracking losses in Europe and Asia,amid renewed worries over a second bailout package for Greece.

EU leaders meet in Brussels on Monday to sign off on a permanent rescue fund for the euro zone. Greek Prime Minister Lucas Papademos will be among them as negotiators in Greece race to secure a debt swap deal.

A Financial Times report said that Greece had angrily rejected a German proposalto create a European budget “overseer” to monitor the country’s finances in return for a second bailout, further adding to investors’ anxiety on Monday.

A glimpse of hope for the debt-stricken region came in the form of a positive debt auction for Italy, which saw its borrowing costs for long-term debt fall sharply.

Among financials, Goldman Sachs upgraded Citigroup to "buy" from "neutral," citing a clearer path for the bank to return capital to shareholders. Meanwhile, the brokerage downgraded Bank of America to "neural" from "buy," saying it anticipates higher execution risk for the firm over the next 12-18 months.

Meanwhile, Goldman Sachs upgraded Morgan Stanley to a "conviction buy" from "neutral."

On the M&A front, U.S. Airways jumped after a report that Delta Airlines may be considering a takeover bid. Delta is also said to be considering a similar move for recently bankreupt American Airlines parent AMR.

Swiss engineering group ABB announced it will acquire U.S.-based electrical components maker Thomas & Betts for $3.9 billion in cash, or $72 per share.

Meanwhile, the FDA approved the diabetes drug Bydureon, developed by a partnership between Amylin and Alkermes .

In other company news, the Wall Street Journal reported that Citigroup chairman Richard Parsons is considering leaving the position to pursue other interests.

On the economic front, consumer spending was unchangedin December, while spending was the weakest since June, according to the Commerce Department, as households boosted their savings. Economists polled by Reuters expected spending to gain 0.1 percent.

—Follow JeeYeon Park on Twitter: twitter.com/JeeYeonParkCNBC

Coming Up Tihs Week:

MONDAY: Dallas Fed mfg survey
TUESDAY: Employment cost index, S&P Case-Shiller home price index, Chicago PMI, consumer confidence, Florida GOP Primary vote; Earnings from ExxonMobil, Eli Lilly, Pfizer, UPS, Amazon.com, Broadcom
WEDNESDAY: Weekly mortgage applications, Challenger job-cut report, ADP employment report, Fed's Plosser speaks, ISM mfg index, construction spending, oil inventories, auto sales; Earnings from Aetna, Marathon Oil, Qualcomm, Electronic Arts
THURSDAY: Jobless claims, productivity and costs, Fed's Fisher speaks, chain-store sales; Earnings from AstraZeneca, Deutsche Bank, Merck, Royal Dutch Shell, Sony, Unilever, beazer Homes
FRIDAY: Employment situation, factory orders, ISM non-mfg index; Earnings from Clorox

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