By Tomi Kilgore
U.S. stock futures held losses through data showing
manufacturing activity in New York was stronger than expected.
Dow Jones Industrial Average futures shed 37 points, or 0.2%, to
16660.
S&P 500 index futures lost four points, or 0.2%, to 1924,
and Nasdaq 100 futures gave up seven points, or 0.2%, to 3762.
Changes in stock futures don't always accurately predict stock
moves after the opening bell.
On Friday, the Dow rose 42 points, or 0.2%, but suffered its
first weekly decline in four weeks. And the S&P 500's 0.7%
decline last week was the biggest weekly percentage decline in two
months, but the index closed Friday just 0.8% below its June 9
record closing high of 1951.27.
The New York Federal Reserve's Empire State index of
manufacturing activity for June rose slightly to 19.3 from 19.0 in
May, versus expectations of a decline to 15.0.
Still on tap, industrial production for May, due out at 9:15
a.m., is seen rising 0.5% on the month, while capacity utilization
is forecast to increase to 78.9% from April's 78.6%.
After the open, the National Association of Home Builders' June
housing market index is expected to tick up to 47 from 45 a month
ago.
Investors will also be looking ahead to the release of the
Federal Reserve's latest policy statement on Wednesday and Fed
Chairwoman Janet Yellen's press conference. The Fed is widely
expected to announce another $10 billion reduction in its highly
stimulative bond buying program to $35 billion a month. But
investors will be looking for any changes in the Fed members'
economic projections that might influence policy going forward.
Worries about the potential escalation of violence in Iraq
contributed to the early weakness in stock futures.
Over the weekend, the radical Sunni militia ISIS bragged that it
had executed hundreds of Shiite Iraqi soldiers.
The U.S. sent an aircraft carrier to the Persian Gulf over the
weekend as President Barack Obama weighed options for possible
military involvement.
The increased tension in Iraq, a major supplier of oil, has
pushed crude oil prices higher and supported gains in investments
seen as safe havens, such as gold and U.S. Treasurys.
Crude oil futures inched up 0.1% to $107.08 a barrel, after
surging 4.1% last week to settle near a nine-month high.
Gold futures advanced 0.7% to $1,282.50 an ounce, after rising
Friday for a fifth-straight session, the longest win streak in
three months. And the yield on the 10-year Treasury note eased to
2.584% from 2.601% late Friday. Yields decline as Treasury prices
rise.
Write to Tomi Kilgore at tomi.kilgore@wsj.com