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US stock futures fall ahead of busy week of earnings; Debt worries weigh on markets
NEW YORK (AP) ' Debt worries continue to hang over markets Monday. U.S. stock futures fell before the start of trading, ahead of a busy week for corporate earnings reports.
Europe's banking troubles and a debate over lifting the U.S. government's borrowing limit helped drag down stock markets in Asia and Europe.
The results of stress tests on European banks released Friday did little to reassure investors. Of the 90 European banks tested for how they would fare in a recession, eight flunked. Another 16 barely passed.
Traders are also keeping watch on negotiations in Washington to raise the U.S. government's debt ceiling. The Treasury Department says the limit must be raised by Aug. 2 or the government risks defaulting on its debts. Rating agencies warned last week that the impasse puts the country's top AAA credit rating grade at risk.
It's also the start of a crowded week for earnings reports. Toy maker Hasbro Inc. said Monday morning that net income rose in the second quarter on stronger sales of Transformers action figures and other products. But those results fell short of Wall Street's estimates. Hasbro's shares fell less than 1 percent in premarket trading.
IBM Corp. reports after the close of trading. More than 100 members of the S&P 500 index are set to release second-quarter results this week, including such giants as Apple Inc., Johnson & Johnson and General Electric Co.
Ahead of the opening bell, Dow futures are down 82 points, or 0.7 percent, at 12,370. S&P 500 futures are down 8, or 0.7 percent, at 1,306. Nasdaq 100 futures are down 13 or 0.6 percent, at 2,342.