Wall Street was set to fall at the open on Monday on worries that problems persist for the struggling banking sector and after Bank of America's results relied heavily on one-time items as credit quality deteriorated markedly.
Financial shares were likely to face pressure after Bank of America Corp
Bank of America was down 8.1 percent at $9.74 before the opening bell.
Shares of Citigroup Inc
There's this real sense that there are pending problems in the financial space, that all of the issues have not been addressed yet and it's definitely going to overhang this market until we get a couple quarters out, said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.
There's a doubt to the prospect of a healthier financial sector. You can feel it, it's palpable.
On the upside, shares of Sun Microsystems Inc
S&P 500 futures dropped 14.60 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 139 points, and Nasdaq 100 futures fell 24 points.
Adding to the negative tone, U.S. President Barack Obama said over the weekend that the economy remains under strain and his top economic adviser tempered hopes for a speedy recovery.
American International Group Inc
Among the round of morning earnings, Eli Lilly and Co
Stocks rose on Friday, with the Dow scoring its biggest six-week gain in nearly 71 years, helped by a reassuring report on the mood of consumers and stabilization in General Electric Co
As of Friday's close, the Dow is up 22.7 percent over the past six weeks, making this the largest six-week gain since July 29, 1938, while Friday's close also marked the S&P 500's longest weekly winning streak since 2007.
After the bell, International Business Machines Corp investors will focus on the impact of the global economic slowdown on the tech bellwether's results, which have held up relatively well so far, thanks to its software and services business.
Texas Instruments Inc
(Reporting by Leah Schnurr; editing by Jeffrey Benkoe)