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 and JPMorgan Chase & Co were overshadowed by headwinds from macroeconomic reports that gave the S&P 500 its worst week in five.

International Business Machines Corp and Charles Schwab Corp were due to report later Monday, with Apple Inc , Bank of America Corp and Coca-Cola Co on tap this week.

Giant oilfield services group Halliburton Co posted a 54 percent jump in quarterly profit. Its shares were up 2.7 percent to $54.50 in premarket trading.

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 reported adjusted second-quarter earnings that missed estimates, hurt by higher costs, though sales topped expectations.

News Corp shares will be in focus after Rebekah Brooks, the former head of the media and entertainment group's UK newspaper business, was arrested on Sunday, the latest development in a phone hacking scandal.

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)