Stock index futures pointed down about 1 percent on Monday after three weeks of gains, while markets awaited word from the government about the repayment of bank bailout money this week.
The Obama administration is expected to announce a higher-than-expected number of big banks will be allowed to repay their government bailout funds, the Washington Post reported. The newspaper said the size of the repayments may be twice the initial estimate of $25 billion.
Bank of America Corp
The price of oil and U.S. Treasury bond yields are likely to remain in focus, with the 10-year note's yield near 4 percent and oil approaching $70 per barrel, although oil futures were off 1.4 percent. Investors were concerned that increased costs of borrowing and for fuel could hit consumers and businesses, slowing an economic recovery.
The U.S. dollar rose against a basket of currencies on Monday, following recent weakness that has helped natural resource companies and multinationals. Freeport-McMoRan Copper & Gold Inc
Considering we have had a healthy, positive outlook to the market, it appears that this morning we are facing a bout of profit-taking as we await further evidence of economic progress, said Andre Bakhos, president of Princeton Financial Group in Princeton, New Jersey.
S&P 500 futures fell 9 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 75 points, while Nasdaq 100 futures dropped 15.75 points.
Indiana pension funds and consumer groups asked the U.S. Supreme Court on Sunday to stop the sale of bankrupt automaker Chrysler LLC to a group led by Italian carmaker Fiat SpA
U.S. stocks ended mixed on Friday, with the major indexes split as investors considered conflicting signals in monthly U.S. jobs data. Investors sold recent winners to book gains from the spring rally, which has lifted the S&P 500 by almost 40 percent from its 12-year closing low on March 9.
(Reporting by Edward Krudy; editing by Jeffrey Benkoe)