Wall Street To Open On Soft Note: U.S. stock futures drop on inflation, growth fears

[EV_Ares]

Modestly weaker open looms, in spite of $20 billion-plus in Monday M&A.

LONDON (MarketWatch) -- U.S. stock futures on Monday were pointing to another downbeat session as Moody's Investors Services said it could lower bond insurer credit ratings because of subprime losses and as former Federal Reserve Chairman Alan Greenspan warned about the possibility of stagflation, when prices rise at the same time the economy cools.
S&P 500 futures fell 6.8 points at 1,471.60 and Nasdaq 100 futures fell 9 points at 2,084.75. Dow industrial futures declined 77 points.
U.S. stocks closed sharply lower on Friday, as rising inflation dismayed investors already concerned that credit-market turbulence may prompt a recession. The Dow industrials fell 178 points, the S&P 500 lost 20 points and the Nasdaq Composite fell 32 points.
Former Fed chairman Alan Greenspan warned on Sunday in televised interviews of the specter of stagflation and said there was a 50-50 chance of a U.S. recession.

Former Fed chief Greenspan warns of rising prices and cooling economy, while Moody's says may lower bond-insurer ratings.
• U.S. current-account deficit narrows | Empire State gauge drops
• Making a compelling case against a recession (24/7 Wall Street)
• European financials pinched | Banks, miners take gloss off Asia
• Stocks to watch | Nasdaq-100 rebalancing | Subprime Today

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