Wall Street stocks were set for a lower open 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.
German Finance Minister Wolfgang Schaeuble said European governments will not resolve the crisis at the European Union meeting scheduled for October 23. U.S. 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 2.7 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 43 points, and Nasdaq 100 futures dipped 10.5 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 after closing at 1,224.58 on Friday. If we get through that, then it will take us into a higher new trading range, he said.
Highlighting recent worries about the economy, a gauge of manufacturing in New York State contracted for the fifth month in a row in October as new orders were flat and the outlook for the coming months weakened.
Events in Europe overshadowed a $21 billion deal by Kinder Morgan Inc
El Paso's shares rose almost 30 percent to $24.85 in premarket trading.
Corporate results moved into high gear, with Citigroup Inc
Citi's shares rose 2 percent to $28.96, while Wells slipped 3.6 percent to $25.70.
International Business Machines Corp
(Editing by Padraic Cassidy)