U.S. stock index futures pointed to a lower open on Monday with a slide in oil prices set to weigh on energy shares and as investors remained anxious about the potential strength of the economic recovery.
Oil sank to a five-week low below $64 a barrel, as investors remained cautious over the prospects of a speedy global economic turnaround in the wake of last week's grim U.S. jobs data. Shares of Exxon Mobil
Although the weaker oil prices bode well for recession-weary consumers, strong commodity prices have been viewed as a signal the global economy is stabilizing.
Last week's much weaker-than-expected jobs data weighed heavily on the market as investors questioned what the economic recovery will look like. Market-watchers were also looking ahead to the start of earnings season, which kicks off with Alcoa
A little bit of fear factor is back into the marketplace, said Peter Cardillo, chief market economist at Avalon Partners in New York.
The unemployment report was not a good report and it does cast some doubt, but I don't think it reverses the trend (of stabilization).
Investors will take in the latest data with a look at the services sector as the Institute for Supply Management releases its June non-manufacturing index, at 10:00 a.m. EDT.
S&P 500 futures fell 8.40 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 slid 74 points, and Nasdaq 100 futures lost 10.50 points.
Over the weekend, Vice President Joe Biden said the White House does not favor another stimulus package now, though he said that when it came into office, the current administration had misread how bad the economy was.
A U.S. judge on Sunday approved General Motors Corp's
Stocks tumbled on Thursday, driving the S&P 500 down to its third-straight weekly loss, as a slide in June non-farm payrolls revived caution about economic recovery prospects. U.S. markets were closed on Friday for the Independence Day holiday.
(Editing by Theodore d'Afflisio)