Stock Futures Slip Ahead of BofA, IBM

Tim Paradis NEW YORK -- U.S. stock futures tumbled early Monday as investors began a busy week of quarterly earnings reports that could test the stock market's six-week rally.

Bank of America (BAC Quote) said early Monday that it earned a surprise profit in the first quarter but that it also set aside $13.4 billion to cover losses on souring debt. The stock fell 5.6% in electronic premarket trading.

Meanwhile, Halliburton (HAL Quote) said its first-quarter earnings fell 35% as oil and natural gas producers cut back on exploration and drilling because of low prices.

A private sector group's monthly forecast of economic activity is expected to drop for the second straight month. IBM (IBM Quote) also is set to report earnings.

Investors are looking for signals that a rally from 12-year lows in early March can continue. Wall Street has been emboldened by early signals that the economy could be stabilizing. But after a 24% surge in the Dow Jones Industrial Average investors are asking whether the market has risen too quickly.

Dow futures fell 109, or 1.4%, at 7,975. S&P 500 index futures fell 13.40, or 1.6%, at 853.40. Nasdaq 100 index futures fell 18.50, or 1.4%, to 1,333.50.