Stock index futures were lower on Monday as the deadline for a U.S. debt deal neared with no resolution in sight and investors continued to fret over ongoing fiscal problems in Europe.
An earnings season that is expected to be strong could lift equities during the week, even though encouraging results last week from Google Inc
International Business Machines Corp
Giant oilfield services group Halliburton Co
With five days remaining before U.S. President Barack Obama's deadline for a deal to raise the government's debt ceiling, Republicans and Democrats were still divided on a plan to cut the nation's deficit and raise the debt limit in time to avoid an unprecedented default. That outcome was seen as unlikely, though.
S&P 500 futures fell 9.8 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures sank 91 points, and Nasdaq 100 futures lost 18.25 points.
European equities added to last week's losses early Monday, led lower by banks. Results from the region's regulatory stress tests late Friday failed to dispel concerns over the potential impact from the region's sovereign debt crisis.
The FTSEurofirst 300 <.FTEU3> index of top shares fell 1.1 percent, while the Stoxx Europe 600 banking index <.SX7P> lost 1.6 percent.
Toymaker Hasbro Inc
The Nasdaq closed up 1 percent on Friday, helped by Google's blowout quarter, while the Dow and S&P posted modest gains. The advances were a bright spot in a stretch dominated by selling, driven by concerns over the U.S. and European fiscal issues.
(Editing by Jeffrey Benkoe)