* Debt ceiling deadline draws closer
* Cooper Tire slumps on buyout squabble
* Alcoa, Yum Brands to report after the close
* Futures off: Dow 116 pts, S&P 14 pts, Nasdaq 22.75 pts
By Chuck Mikolajczak
NEW YORK, Oct 7 U.S. stock index futures fell on
Monday as the partial U.S. government shutdown continued with
no signs of a softening in the positions of politicians over the
debt-ceiling limit or budget impasse.
Republican House Speaker John Boehner vowed on Sunday not to
raise the U.S. debt ceiling without a "serious conversation"
about what is driving the debt, while Democrats said it was
irresponsible and reckless to raise the possibility of a U.S.
The United States faces a deadline of Oct. 17 to raise its
$16.7 trillion debt limit or risk an unprecedented debt default.
The two issues of emergency funding for the
government to operate and increase the U.S. borrowing authority
started out separately in the House but have been merged by the
pressure of time.
"Fear is mounting among investors that the upcoming debt
ceiling deadline will be handled as poorly as the budget impasse
has," said Andre Bakhos, managing director at Janlyn Capital LLC
in Bernardsville, New Jersey.
"Given the lack of bipartisan workmanship, confidence is low
and it is manifesting in poor market performance."
The S&P 500 has fallen two straight weeks and is down
2 percent from its all-time closing high of 1,725.52 on concerns
about the effect of dysfunction in Washington on the economy.
S&P 500 futures fell 14 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 116
points, and Nasdaq 100 futures dropped 22.75 points.
Apollo Tyres of India and U.S.-based Cooper Tire &
Rubber Co disagree over whether Apollo should pay a
lower price in its $2.5 billion takeover, the latest hurdle in a
deal beset by lawsuits, labor issues and unhappy Apollo
investors. Cooper Tire shares slumped 10.2 percent to $26.50 in
Private equity firm KKR & Co LP is nearing a deal to
acquire lifting equipment company Crosby Group LLC for around $1
billion, two people familiar with the matter said on Sunday.
Food waste recycler Darling International Inc said
it would buy Vion Ingredients, a unit of privately held Vion
Holding NV, for 1.6 billion euros ($2.18 billion).
The third-quarter earnings season gets under way this week
as Alcoa Inc, the largest U.S. aluminum company, and Yum!
Brands Inc are scheduled to report.
European stocks dropped in thin volumes, with one benchmark
index hitting a four-week low as investors fretted over lack of
progress in Washington's budget standoff.
Asian shares also declined, as Japan's Nikkei share average
dropped 1.2 percent, hitting a one-month low and
extending last week's 5 percent tumble.