US STOCKS-Futures down as Washington stalemate continues

Reuters

* Futures off: Dow 131 pts, S&P 16 pts, Nasdaq 27.75 pts

By Chuck Mikolajczak

NEW YORK, Oct 7 (Reuters) - U.S. stock index futures fell onMonday, as the partial government shutdown continued with nosigns of a thaw in negotiations among politicians.

* Republican House Speaker John Boehner vowed on Sunday notto raise the U.S. debt ceiling without a "serious conversation"about what is driving the debt, while Democrats said it wasirresponsible and reckless to raise the possibility of a U.S.default.

* The United States faces a deadline of Oct. 17 to raise its$16.7 trillion debt limit, which could result in a default ifnot increased.

* The S&P 500 has fallen two straight weeks and isdown 2 percent from its all-time closing high of 1,725.52 onconcerns about the effect of dysfunction in Washington on theeconomy.

* S&P 500 futures fell 16 points and were below fairvalue, a formula that evaluates pricing by taking into accountinterest rates, dividends and time to expiration on thecontract. Dow Jones industrial average futures lost 131points, and Nasdaq 100 futures dropped 27.75 points.

* Apollo Tyres of India and U.S.-based Cooper Tire& Rubber Co disagree over whether Apollo should pay alower price in its $2.5 billion takeover, the latest hurdle in adeal beset by lawsuits, labor issues and unhappy Apolloinvestors. Cooper Tire shares slumped 10.2 percent to $26.50 inpremarket trade.

* Private equity firm KKR & Co LP is nearing a dealto acquire lifting equipment company Crosby Group LLC for around$1 billion, two people familiar with the matter said on Sunday.

* Former Dow component Alcoa Inc as well as Yum!Brands Inc are scheduled to report results after theclose as corporate earnings season gets underway.

* European stocks dropped in early trade, with one benchmarkindex hitting a four-week low, as the lack of progress inresolving Washington's budget standoff kept investors on edge.

* Asian shares also declined, as Japan's Nikkei shareaverage dropped 1.2 percent, hitting a one-month low andextending last week's 5 percent tumble.

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