U.S. Stock Futures Follow Europe Lower

NEW YORK ( TheStreet) -- U.S. stocks futures pointed to a weak open Monday as European stocks pushed lower and after the Japanese government intervened overnight to cap a rising yen.

Futures for the Dow Jones Industrial Average were down 97 points, or 104 points below fair value, at 12,079. Futures for the S&P 500 were down 12 points, or 13 points below fair value, at 1281 and Nasdaq futures dropped 20 points, or 20 points below fair value, at 2377.

In overnight trading, the Japanese government sold the yen to curb the rising value of the currency in an attempt keep the country's exports competitive. The dollar hit a three-month high against the yen after posting a record low of 75.31 yen since World War II before Japan's move. The dollar index, a measure of the dollar's value against a basket of currencies, rose 1.2%.

Japan's Nikkei Average finished 0.7% lower, and Hong Kong's Hang Seng lost 0.8%.

In Europe, London's FTSE was losing 1.1%, and Germany's DAX was off by 1.9%. The euro fell 1.1% against the greenback.

While a plan from eurozone leaders last week to address the region's debt crisis was met with relief from investors, skepticism that Europe is far from resolving its debt crisis and economic malaise has led to some nervousness over whether stocks can extend a strong run into the next month. Economists say that Europe is headed for a prolonged period of slow growth.

On Friday, stocks closed mixed, suggesting the market was taking a breather after rallying on Europe's debt pact. With just one trading day left in October, the Dow is up 12% for the month.

The rising dollar pressure pressured commodities like gold, which slipped $27.70 to trade at $1716 an ounce. In other commodities, the December crude oil contract gave up 77 cents to trade at $92.55 a barrel. The benchmark 10-year Treasury was last gaining 5/32, diluting the yield to 2.384%.

Markets await key announcements on monetary policy from the U.S. Federal Reserve and the European Central Bank later this week. The biggest report on the U.S. economic calendar will be the government's October jobs report on Friday.

The Chicago purchasing managers index, a gauge for mid-west manufacturing activity, is slated for released at 9:45 a.m. ET. Economists expected a slight drop from to 59.0 in October from 60.4 in the prior month.

Securities firm MF Global Holdings ( MF), which is considering filing for bankruptcy and selling assets to Interactive Brokers Group ( IBKR), is likely to decide on a deal by Monday, according to The Wall Street Journal. While the firm may not be big enough to trigger a systemic risk to the rest of the financial system, it is thus far considered the biggest U.S. casualty from the eurozone debt crisis because of its risky bets on European sovereign bonds.

Health insurer Humana ( HUM) rose 1.7% to $80.35 in premarket trading after topping profit estimates by 51 cents a share for the third quarter.

Companies set to report after the bell include insurance company Allstate ( ALL), Anadarko Petroleum ( APC) and Atlas Pipeline Partners ( APL).

-- Written by Chao Deng in New York.

Copyright 2011 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More from Markets

REPLAY: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

REPLAY: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

Global Markets Hit Hard; AMC Entertainment Sells Stake in Ad Unit -- ICYMI

Global Markets Hit Hard; AMC Entertainment Sells Stake in Ad Unit -- ICYMI

CVS, Walgreens and Citigroup: Cramer's 'Off the Charts'

CVS, Walgreens and Citigroup: Cramer's 'Off the Charts'

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

General Electric Booted From Dow, Replaced by Walgreens

General Electric Booted From Dow, Replaced by Walgreens