Stock futures declined on Monday, suggesting a lower opening for Wall Street, hit by weakness in global markets and concern that credit problems may be having a wider impact on earnings.
The Dow industrials fell nearly 367 points on Friday, summoning memories of the 1987 market crash on its 20th anniversary.
Caterpillar Inc., the world's largest maker of construction and mining equipment, led the slide after it warned the housing slump was infecting the wider economy.
Investment bank Lehman Brothers on Monday cut its rating on the U.S. mortgage finance sector to negative from neutral, according to theflyonthewall.com.
The S&P 500 had its biggest weekly drop last week since August at the peak of a credit crisis.
We saw weak earnings broaden out to the industrials, and so we're going into the day with some downward pressure and hope to find some good news in earnings, said Arthur Hogan, chief market analyst at Jefferies & Co. in Boston.
S&P 500 futures dropped 10.50 points and were below fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.
Dow Jones industrial average futures shed 100 points, and Nasdaq 100 futures fell 15 points.
Of the 131 companies that have reported earnings, more than 25 percent missed Wall Street's targets -- more than twice the level at the same time last year, according to Reuters Estimates.
0ver the weekend, finance leaders from the Group of Seven industrialized nations said the world economy was healthy, but that financial market conditions required close monitoring because of shortcomings exposed by the credit crisis.
Oil services company Halliburton Co on Sunday said third-quarter net profit rose 19 percent, helped by a tax benefit, new international contracts and higher activity from its customers.
The FTSEurofirst 300 index of top European shares was down 1.4 percent, while Japan's Nikkei average ended at a four-week closing low.
Oil prices eased more than $1, but remained above $87 a barrel.
On Friday, the Dow Jones industrial average was down 366.94 points, or 2.64 percent, to end at 13,522.02. The Standard & Poor's 500 Index was down 39.45 points, or 2.56 percent, at 1,500.63. The Nasdaq Composite Index was down 74.15 points, or 2.65 percent, at 2,725.16.