Wall Street futures point to lower open
NEW YORK -- Wall Street was set for a lower open Monday following declines in Europe and as investors look to take a pause in a three-month rally. Stock futures fell.
With little economic data due out early in the week, investors could book some gains and try to determine if the recent surge has been overdone. Markets have skyrocketed since March amid hopes the recession might be moderating.
Despite some signs of improvement, concerns linger about the global economy. Interest rates on government bonds are edging higher, unemployment continues to rise and oil prices are near six-month highs. That has left investors concerned about the sustainability and size of a potential recovery.
With no economic data on tap for Monday, investors will have to wait for reports later in the week, beginning with data on wholesale inventories due out Tuesday. On Wednesday, the Federal Reserve provides insight into economic activity by region. On Thursday, reports on retail sales, business inventories and jobless claims are set to be released. Friday brings a report on consumer sentiment.
Consumer spending accounts for more than two-thirds of economic activity. It is widely believed that improvements in consumer spending are necessary for a sustained recovery.
In corporate news, some national banks that received money as part of the government's bailout last fall could hear as early as Monday if they will be able to repay those loans. JPMorgan Chase, Goldman Sachs and American Express are expected to get approval to repay their loans, according to The Washington Post.
Other banks that were told by the government last month to raise funds to help protect against a potential worsening in the economy must submit plans Monday about how they are raising that capital. Several large banks, including Bank of America and Citigroup, were told in early May as part of the government's banking "stress tests" that they needed a larger cash buffer.
Meanwhile, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.81% from 3.84% late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.18% from 0.17% late Friday.
