Stock index futures fell on Monday after the market's best two-week run since 2009 as Germany's finance minister said a forthcoming summit would not yield a definitive solution to Europe's debt crisis.
European governments will not resolve the region's sovereign debt crisis at a European Union summit on October 23, German Finance Minister Wolfgang Schaeuble said. The summit is scheduled for October 23 and stocks had run up partly in anticipation of it.
The S&P 500 has risen more than 8 percent in the first back-to-back winning weeks since July. The index has approached the top of a two-month trading range on hopes the global economy can dodge a new recession and the euro zone will resolve its debt crisis and recapitalize its banks.
We have moved from risk on (to) risk off, from Europe on (to) Europe off, said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. We have had nothing but a series of innuendoes and hints that something is coming all along. We have had little in the way of definitions.
S&P 500 futures fell 2.5 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 fell 15 points, and Nasdaq 100 futures dipped 5.5 points.
Peter Cardillo, chief market economist at Rockwell Global Capital in New York, said the S&P 500 was running into resistance near the 1,250 level. The index closed at 1,224.58 on Friday. If we get through that than it will take us into a higher new trading range as we go forward, he said.
Events in Europe over shadowed a big M&A action. Kinder Morgan Inc
El Paso's shares rose almost 30 percent to $24.85 in premarket trading.
Corporate earnings kicked into high gear, with Citigroup Inc
International Business Machines Corp
The Federal Reserve releases industrial production and capacity utilization data for September at 9:15 a.m. EDT (1315 GMT). Economists looked for a 0.2 percent increase in production, unchanged from the previous month and a reading of 77.5 percent for capacity utilization, versus 77.4 percent.
(Editing by Jeffrey Benkoe)