S&P 500 index futures declined 3.3 points, or 0.2%, to 1967.70 and Nasdaq-100 futures lost 3.25 points, or 0.1%, to 3901.00. Changes in stock futures don’t always accurately predict stock moves after the opening bell. Stocks fell on Monday, with the Dow falling 0.3% to 17024.21 and the S&P losing 0.4% to 1977.65. Losses in the Dow snapped a three-session winning streak that had pushed it above 17000 for the first time.
Stocks have minted a slew of records this year as labor-market data underscore a U.S. recovery and the Federal Reserve maintains accommodative monetary policy. Expectations of continued low U.S. interest rates could add to the allure of stocks.
The Dow has gained 2.7% in 2014 through Monday’s close and the S&P 500 has rallied nearly 7% in the same period. Many investors say earnings growth is a key component for further stock-market gains. Alcoa is scheduled to report second-quarter earnings Tuesday, an event that is widely recognized as the start to the earnings season. Analysts polled by FactSet are expecting per-share earnings of 12 cents.
The U.S. economy created more jobs than expected in June, the Bureau of Labor Statistics reported Thursday. That pace of job creation could foreshadow a pickup in corporate earnings.
Also in focus this week is the release of minutes from the Federal Reserve’s rate-setting committee, due Wednesday, which could shed some light on the timing of the central bank’s eventual interest-rate hikes.
European shares declined Tuesday, with the Stoxx Europe 600 losing 0.5%. Franco-Dutch airline Air France-KLM shares fell more than 5% after the company became the latest to lower its earnings guidance for 2014, citing weak demand and difficulties repatriating revenue from Venezuela.
Commerzbank AG shares declined 4% as reports said the lender could be the next to be scrutinized by regulators for allegations surrounding sanctioned payment activities.
The pound inched down 0.1% to $1.7123, weighed by U.K. factory output falling unexpectedly on the month in May.
The Office for National Statistics said the monthly falls in the U.K.’s industrial sector aren’t a sign of weakness in the economy. However, it is likely the drop suggests a slowdown in the pace of growth among manufacturers in the second quarter of the year.
In commodities markets, gold climbed 0.5% to $1,324.00 an ounce while crude-oil futures inched down 0.1% to $103.41 a barrel.