Stock futures picked up where equities left off on Friday, extending a sharp selloff on worries over oil and disappointing earnings.
S&P 500 futures were down 1.4%, Dow Jones Industrial Average futures slid 1.4%, and Nasdaq futures fell 2.2%.
U.S. stocks on Friday ended lower in a brutal end to the week as equities entered another tailspin on a laundry list of worries. Whether it was oil, the health of the U.S. economy, or a series of weaker earnings across a number of sectors, investors had more than enough to push them into panic mode. A number of disappointing earnings in tech, including Apple (AAPL - Get Report) and LinkedIn (LNKD) , have pressured the sector.
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Sixty-five S&P 500 companies are set to report earnings this week, including 21st Century Fox (FOXA) after the bell Monday. So far this earnings season, 72% of earnings reports have beaten profit estimates, while sales have only beat 48% of the time. Blended earnings have fallen 3.8% so far this season, dragged on by the energy sector.
Uncertainty over the Federal Reserve's rate hike plans also contributed to downward momentum. Investors are concerned that the Fed will move forward with additional rate hikes following December's move even as the economy shows signs of weakness. Fed Chair Janet Yellen's semi-annual testimony to Congress on Wednesday and Thursday will be closely watched for hints on the central bank's future plans.
Crude oil struggled to hold above $30 a barrel on Monday as oversupply concerns and weaker global growth kept commodity traders at bay. The fresh selloff comes after a meeting between Saudi Arabia and Venezuela over the weekend to discuss possible coordination to cut production, though hopes are low an agreement was made. West Texas Intermediate crude oil was down 2.9% to $30.01 a barrel on Monday morning. Prices have fallen 22% since the beginning of the year.
Apollo Education Group (APOL) surged 30% in premarket trading on news the company will be taken private by a group of investors. The go-private deal is worth $1.1 billion and values Apollo at a 30% premium above its 30-day average. Tony Miller, CEO of investing company Vistria Group, will become chairman of the board once the deal closes.
Loews (L - Get Report) fell 8% after swinging to a quarterly loss in the fourth quarter, dragged on by weaker revenue in insurance premiums. Insurance unit CNA Financial Corp., Loew's largest sales contributor, also took down a one-time $178 million charge tied to its long-term care business.
Hasbro (HAS - Get Report) shares were on watch after a better-than-expected quarter driven by sales of its Star Wars and Jurassic World product lines. The toymaker earned $1.39 a share, 9 cents above estimates, while revenue of $1.47 billion exceeded estimates of $1.37 billion.