Stock futures extended their decline on Monday morning in a quieter start to the week ahead of a Federal Reserve announcement on interest rates on Wednesday.
S&P 500 futures were down 0.31%, Dow Jones Industrial Average futures fell 0.31%, and Nasdaq futures declined 0.35%.
The central bank will meet on Tuesday with an announcement set for Wednesday afternoon and while the chances of an interest rate hike are slim, investors will be keen to gauge how willing members are to move at the next meeting in June.
"While we assign a low probability of a rate hike, sentiment may be impacted by Fed comments about the strength of economic health and implied likelihood of a June rate hike," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.
Fed funds futures only price in a rate hike with odds greater than 50% in November, nearly a year after December 2015's initial liftoff, according to CME Group. The chance of an April rate hike is currently priced in at 2%, while a June hike has a 17% probability. September has a 47% chance.
It's also a massive week for earnings with Apple (AAPL - Get Report) , AT&T (T - Get Report) , Twitter (TWTR - Get Report) , Facebook (FB - Get Report) and Amazon (AMZN - Get Report) set to report their quarterly performances.
Crude oil was lower ahead of an announcement from Saudi Arabia detailing plans to diversify from an oil-reliant economy. Oil revenue currently accountw for 80% of the country's income, but has taken a hit as commodities tumble. West Texas Intermediate crude oil was down 0.87% to $43.36 a barrel on Monday.
Gannett (GCI - Get Report) was flat in premarket trading after offering to buy Tribune Publishing (TPUB) in a deal worth $815 million, including $390 million in debt. The publishing company proposed $12.25 a share in cash, equivalent to a 63% premium on Friday's close. Tribune shares surged 56% before the bell.
Xerox (XRX - Get Report) edged higher in premarket trading as restructuring costs related to its planned split reduced earnings from a year earlier. The printing company earned 3 cents a share in its first quarter, down from 19 cents a share in the year-ago quarter. On an adjusted basis, earnings of 22 cents a share missed expectations by a penny. Revenue fell 4% to $4.28 billion.
KKR & Co. (KKR - Get Report) was slightly lower after swinging to a first-quarter loss tied to extreme market volatility at the beginning of the year. The private-equity firm reported a loss of 73 cents a share, far from profit of 57 cents a share in the year-ago period. The company's portfolio depreciated 0.9% over the first quarter.
Ball (BLL - Get Report) was on watch after clearing a major obstacle to the closing of its ¿5.4 billion ($7.8 billion) purchase of the U.K.'s Rexam (REXMY) . The can maker struck a $3.42 billion agreement to sell assets to Ardagh to meet regulatory conditions of the larger deal.