NEW YORK (TheStreet) -- Stock futures suggested Wall Street would suffer a steep decline by the opening bell Monday as European shares sold off after Greek debt talks broke down. A disappointing read on U.S. industrial production also was pressuring markets. 

S&P 500 futures fell 0.6%, Dow Jones Industrial Average futures dropped 0.66%, and Nasdaq futures declined 0.65%. 

U.S. industrial production fell 0.2% in May, below forecasts for an increase of 0.2%. The measure fell 0.5% in April.

The Empire State Manufacturing Survey, a gauge of activity in the New York region, declined to a reading of -2 in June, down from 3.09 in May. Economists had expected a reading of 5.9.

European markets were sharply lower after negotiations between Greece and its European creditors broke down on Sunday, reportedly after only 45 minutes. Both sides are standing firm on proposed austerity measures with no agreement in sight which would allow Greece access to additional debt relief before its repayments to the International Monetary Fund come due June 30. 

Germany's DAX fell  1.9%, France's CAC 40 was down 1.4%, and the FTSE 100 in London slid 1.1%. The Athens Stock Exchange fell 5.2%. 

Standard Pacific (SPF) and Ryland Homes (RYL) shares were on watch after the homebuilders announced a merger with a combined market cap of $5.2 billion. Standard Pacific shareholders will hold a 59% stake while Ryland shareholders will hold the remainder.

Alibaba (BABA) announced plans to launch a streaming service similar to Netflix (NFLX) in China called Tmall Box Office. The service is expected to launch in two months and marks poor timing for Netflix which is reportedly exploring the possibility of launching in the region. 

CVS Health (CVS) shares climbed in premarket trading after the company announced it will acquire Target's (TGT) pharmacy business for $1.9 billion. The deal sees CVS assuming ownership of 1,600 locations in 47 U.S. states.  

"Here's a win for everyone," said TheStreet's Jim Cramer. "Plenty of new customers for CVS. Plenty of traffic and bucks up front for Target. Both stocks should run even with Greece gumming up the works!"

General Motors (GM) shares were slightly lower on reports the automaker will likely team up with Japan's Isuzu Motors to re-enter the medium-duty work truck market. Under the proposed deal, Isuzu will manufacture the vehicles while GM will distribute them through its dealer network, according to The Wall Street Journal

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