After seeing notable weakness last week, stocks could see some further downside 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 42 points.
The downward momentum for the markets reflects a negative reaction to election results in France and Greece, which some consider a setback to the progress achieved thus far on the European debt crisis.
Francois Hollande won a run-off election against French President Nicolas Sarkozy and will become France's first Socialist president since 1995.
Hollande has expressed significant opposition to using austerity measures to address the European debt crisis, arguing that the focus should be more on economic growth than cutting government spending.
Additionally, the results of Greek parliamentary elections pointed to a hung parliament, with no single party getting adequate votes to form a government. Many Greek voters turned to anti-bailout parties.
The focus on the developments in Europe comes amid a light day on the U.S. economic front, although the Federal Reserve is scheduled to release its monthly consumer credit report later this afternoon.
Among individual stocks, Cognizant Technology (CTSH) is likely to come under pressure after the information technology services provider reported first quarter earnings growth but lowered its full-year guidance. Shares of Cognizant are down by 11.9 percent in pre-market trading.
by RTT Staff Writer
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