Stocks Begin Week in Holding Pattern

Following two tough days for Wall Street at the end of last week, stock futures were indicating the market would again open lower on Monday.

S&P 500 futures were down 3 points at 1277 and were 2 points below fair value. Nasdaq 100 futures were lower by 11 points at 1855 and were 9 points below fair value.

On Friday, the three major indices marked a lackluster finish after each fell about 3% Thursday. Concerns about the health of financial firms including Merrill Lynch (MER Quote - Cramer on MER - Stock Picks) and Citigroup (C Quote - Cramer on C - Stock Picks), as well as record crude oil prices, contributed to the selloff.

Oil will probably be in focus again at the start of the new, holiday-shortened week. Crude for August delivery was recently up $2.46 at $142.67, near its all-time high. Gold was up $4.50 at $935.80.

Before the market open, tax services company H&R Block (HRB Quote - Cramer on HRB - Stock Picks) said it swung to a fourth-quarter profit from a loss a year ago, beating analysts' expectations.

At midmorning, investors will also be looking for clues as to the economy's health in the Chicago purchasing managers' manufacturing report.

Treasury prices were lower. The 10-year note was losing 8/32 in price, yielding 4%, and the 30-year was off 19/32 to yield 4.56%. The dollar was weaker against the euro, the yen and the British pound.

Overseas, the action was mixed. Japan's Nikkei and Frankfurt's Dax were both lower, while the Hong Kong Hang Seng and London's FTSE were gaining ground.