By James Langton

(April 16 – 09:00 ET) – Markets are closed across Europe for Easter Monday today. U.S. futures are offering the only guidance to this morning’s action. Weak earnings reports, notably in the banking sector seem to be pointing to a down open today.

Citigroup Inc., the largest financial services firm in the United States, reported a 7% drop in first-quarter profit. Bank of America’s first-quarter profit was down 17%, thanks to its poor loan book. Also Continental Airlines Inc. saw its first-quarter profit slide 36%, thanks to higher fuel costs and declines in businesses travel.

The other area of weakness is technology, as Nasdaq futures fall on the feeling that last week’s strong tech rally is not justified.

Also in the U.S. banking sector, First Union Corp., the sixth-largest bank in the U.S., is buying Wachovia Corp. for about US$13.4 billion in stock.

Japan was the only overseas market to trade last night. It dropped 131 points to 13,255. The yen slid overnight after the Bank of Japan cut its outlook for the economy for the second straight month. The Japanese central bank said the world slowdown was hitting Japanese exports and hurting its industrial production.

In other news, Gulfstream Resources Canada says it has hired CIBC World Markets Inc. to examine strategic alternatives to maximize shareholder value, including the possible sale of the corporation or other forms of business combinations, the disposition of its major assets or a significant financing.