Stock Futures Point Sharply Lower

NEW YORK (TheStreet) -- U.S. stock futures followed global markets Monday, pointing to a steeply lower open as lingering disappointment regarding last week's dismal June jobs report was compounded by concerns about the global economic recovery.

Futures for the Dow Jones Industrial Average were down by 102 points, or 85 points below fair value, at 12,513. Futures for the S&P 500 were lower by 15 points, or 12 points below fair value, at 1327, and Nasdaq futures were off by 27 points, or 21 points below fair value.

Stocks finished Friday's session lower after a disappointing June jobs report had investors feeling less confident in the economic recovery.

The FTSE in London was shedding 0.5%, and the DAX in Frankfurt was declining by 1%. Hong Kong's Hang Seng sunk 1.7%, and Japan's Nikkei lost 0.7%.

Data released on Saturday showed that inflation in China rose to a three-year high in June despite repeated attempts by the country's central bank to curb it.

The eurozone's bailout fund may have to be doubled to €1.5 trillion ($2.1 trillion) to support Italy, according to a Bloomberg report, which cited an article in the German newspaper Die Welt.

Earnings season unofficially kicks off after the close of trading on Monday with second-quarter results from Alcoa(AA). The market expects the aluminum producer to post a profit of 35 cents a share.

Chinese chemicals company Sinochem is in advanced discussions with Monsanto(MON) to "deepen their ties significantly," according to a Wall Street Journal report.

Shares of Arch Chemicals(ARJ) were surging 11.2% to $46.90 ahead of Monday's opening bell on news that Swiss company Lonza agreed to buy it for $1.2 billion in cash, creating the world's largest microbial control business.

Australian mining company Macarthur Coal said it received a takeover proposal from Peabody Energy(BTU) and ArcelorMittal(MT) valued at roughly $5 billion. Macarthur is the world's largest producer of pulverized coal product that is used to make steel.

The August crude oil contract was shedding $1.25 to trade at $94.95 a barrel. Gold for August delivery was up by $2.90 at $1,544.50 an ounce.

The benchmark 10-year Treasury rose 15/32, diluting the yield to 2.975%. The dollar strengthened against a basket of currencies, with the dollar index up by 0.7%.

.

-- Written by Melinda Peer in New York.

>To order reprints of this article, click here: Reprints