Stocks were lower early Monday as Citigroup's ( C) earnings raised more questions about the economy and oil bounced around on headlines out of the Middle East. Index futures recently showed the S&P 500 trading 4 points below fair value, while the Nasdaq 100 was set for a 5-point decline. The 10-year Treasury bond was unchanged in price to yield 5.06%, while the dollar rose against the yen and euro. Futures took a hit after Reuters quoted a television station in Lebanon reporting that an Israeli jetfighter was shot down during the ongoing military offensive aimed at Hezbollah. Israel, which denied the report, pressed the incursion over the weekend after Hezbollah missiles killed nine people in the city of Haifa. Bad news from Israel and Lebanon battered stocks over the last three sessions, sending the Dow Jones Industrial Average down 3.5% and the Nasdaq Composite down 4.3%. For the Nasdaq, it was the worst three-day performance since April 2005. Oil, which rose above $77 for the first time on Friday due to the Mideast violence, was trading choppily Monday morning. At last check the August contract was down $1.03 to $76 a barrel. Gold fell $2.50 to $665.50 an ounce. Overseas markets were lower, with London's FTSE 100 off 0.2% to 5695 and Germany's Xetra DAX lost 0.4% to 5403. In Asia, Japan's Nikkei lost 1.7% overnight to 14,845, while Hong Kong's Hang Seng lost 0.4% to 16,065. Citigroup said second-quarter earnings rose 4% to $5.27 billion, or $1.05 a share, missing estimates by a penny. U.S. consumer lending was the main drag, with revenue falling 5% to $1.3 billion. The bank blamed a drop in mortgage-servicing revenue and reduced profit margins in its banking operations.