Futures Pointing To Initial Weakness On Wall Street

(RTTNews) - Following the volatility seen last week, stocks are likely to come under pressure in early trading on Monday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 67 points.

A disappointing report from the New York Federal Reserve on regional manufacturing activity may contribute to some early weakness on Wall Street.

The New York Fed said its general business conditions index tumbled to a negative 14.9 in August from a positive 3.9 in July, with a negative reading indicating a contraction in manufacturing activity.

The sharp drop came as a surprise to economists, who had expected the index to climb to a positive reading of 4.8.

With the unexpected decrease, the general business conditions index fell to its lowest level since hitting a negative 19.4 in April of 2009.

Not long after the open, the National Association of Home Builders is scheduled to release a separate report on homebuilder confidence in the month of August.

The housing market index is expected to edge up to 61 in August after holding at a nearly ten-year high of 60 in July.

Nonetheless, overall trading activity may be somewhat subdued, as many traders will be away from their desks to take advantage of the waning summer.