Stock Futures Slip as ECB Excitement Dims

NEW YORK (TheStreet) -- Stock futures were largely pulling back Monday as enthusiasm about potential intervention by the European Central Bank in the region's sovereign debt markets took a hit.

The ECB has called a report in German magazine Der Spiegel about a plan by the central bank to cap government bond yields in troubled eurozone countries such as Spain and Italy as "misleading."

Also, the Bundesbank threw cold water on anticipation about an ECB bond buying program, saying that it "holds to the opinion that government bond purchases by the Eurosystem are to be seen critically and entail significant stability risks."

Futures for the Dow Jones Industrial Average were slipping 20 points, or 22.2 points below fair value, at 13,227. Futures for the S&P 500 were down 1.2 points, or 1.86 points below fair value, at 1414. Futures for the Nasdaq 100 were up 2.5 points, or 0.80 points below fair value, at 2778.

Meanwhile, the euro was sliding against the dollar by 0.26% on the quashed excitement.

"The suggestion here is that no major program will be announced any time soon, despite what European Central Bank President Mario Draghi suggested at the European Central Bank policy meeting on August 2," said Christopher Vecchio, currency analyst at DailyFX, about the Bundesbank commentary.

The major U.S. equity averages approached highs for the year Friday and extended gains on signs the U.S. economy is performing better than expected. Last week's rally was also supported by German Chancellor Angela Merkel's backing of European Central Bank President Mario Draghi's plan to do "whatever it takes" to support the euro.

There were no major U.S. economic releases scheduled for Monday.

Events this week include Wednesday's release of the minutes from the July 31 to August 1 Federal Open Market Committee meeting and Thursday's jobless claims data connected to the August employment survey period.

On Wednesday and Thursday existing and new home sales reports will be released and on Friday there will be durable goods orders data.