Stock futures pointed to a more than 1 percent drop at the open on Monday as investors worried that a possible global flu outbreak could throw a wrench into the economy's ability to climb out of a recession.

Governments around the world moved Monday to contain the spread of a possible flu outbreak, as a virus that has killed over 100 people in Mexico spread to the United States and elsewhere.

Right now it's putting a dent in the market and will continue to serve as a fear factor, said Andre Bakhos, president of Princeton Financial Group in Princeton, New Jersey.

Until some visibility arrives on where this is going and a greater study of the implications, it will weigh on the market.

Whirlpool Corp , the world's biggest appliance maker, reported lower first-quarter profit as sales were hurt by the global slowdown.

Other companies scheduled to report quarterly earnings include Verizon Communications Inc , the No. 2 U.S. phone company, and wireless chip supplier Qualcomm Inc .

The Obama administration is due to release the results of a government stress test on 19 major financial institutions on May 4, but some of the results are expected to start trickling out this week.

Auto industry shares, notably General Motors Corp , are seen in focus after news over the weekend that GM, in an effort to secure the government funding it needs to stay in business, was expected to announce a fresh round of cost cutting on Monday.

Rival automaker Chrysler LLC showed signs of progress on Sunday with its unionized workers in a battle to stay alive with just days left to complete deals to slash labor and debt costs or face bankruptcy.

S&P 500 futures fell 17.60 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 144 points, and Nasdaq 100 futures slid 19.50 points.

Stocks rallied Friday as earnings showed companies have weathered the recession, and economic data raised hopes the economic cycle may have hit a bottom.

(Reporting by Leah Schnurr)