Futures Lower Amid Euro Zone Jitters

Futures slipped Monday as European shares tanked following news that Greece will miss a budget deficit target for this year that was set only months ago.

Draft government figures released on Sunday showed a deficit of 8.5 percent of gross domestic product (GDP) for 2011, compared with a 7.6 percent target.

On Monday, Deputy Finance Minister Pantelis Oikonomou said that Greece persuaded experts in the so-called "Troika"—made of the IMF, EU and ECB—that the slippage was chiefly because of a deeper-than-expected recession.

Asian stocks also fell, on concerns that a European crisis would drag down global growth.

The contraction in manufacturing in the euro zone quickened in September, with new orders shrinking at their fastest pace since June 2009, a survey showed Monday.

In the US, a law firm said at least four shipping companies are likely to restructure or face bankruptcy over the next year as the freight industry faces consolidation because of low freight rates and an abundance of new vessels.

On the economic front, the ISM Manufacturing index for September will be released at 10 am New York time and is expected to come in at 50.5 according to Briefing.com, slightly lower than August's 50.6. ISM Manufacturing numbers below 50 indicates a possible recession.

Construction spending data for August will come out at the same time, and Briefing.com analysts expect it to have fallen by 0.5 percent in August from July's 1.3 percent slump.

Goldman Sachs wrote in a note to clients that risks are rising that the US may fall into a shallow, yet prolonged and painful recession that could lift the country's unemployment to 12 percent.

Finally, Citigroupis being probed by Japan's markets regulator the Financial Services Agency for various failings, a source told Reuters.

Among techs, Yahoo and ABC unveiled a partnership, the latest move by the search-engine firm to readjust its focus after years of failed restructuring efforts. Separately, the CEO of Chinese Internet company Alibaba said he would be "very interested" in buying Yahoo.

Eastman Kodak surged after the photography company denied it has a bankruptcy plan. This comes after the firm lost almost half their value in the previous week following news it borrowed $160 million against its credit line in addition to hiring a law firm specializing in restructuring.

On the M&A front, Pharmaceutical Product Development will be acquired by Carlycle Group, Hellman & Friedman for $3.9 billion. PPD shareholders will receive $33.25 per share in cash.

—Follow JeeYeon Park on Twitter: twitter.com/JeeYeonParkCNBC

Coming Up This Week:

MONDAY: ISM mfg index, construction spending, Fed's Lacker speaks, auto sales, Oracle Open World, Supreme Court starts new term
TUESDAY: Factory orders, Bernanke speaks, Apple iPhone event; Earnings from Yum Brands
WEDNESDAY: Weekly mortgage apps, Challenger job-cut report, ADP employment report, IS non-mfg index, oil inventories; Earnings from Costco, Monsanto, Marriott
THURSDAY: BoE announcement, ECB announcement, jobless claims, chain-store sales; Earnings from Constellation Brands
FRIDAY: Non-farm payroll, wholesale trade, consumer credit, Sprint's 4G plans unveiled

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