Stocks set to open lower

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NEW YORK (CNNMoney.com) -- Stocks looked set to kick off the first trading day of March on a downbeat note, as worries about the slowing economy and weak dollar continued to stalk investors.

About three hours before the start of trading, Nasdaq and S&P futures were lower, indicating a negative start for Wall Street.

Economic concerns and worries about the health of the financial sector sent stocks sharply lower Friday.

Those concerns spread overseas. Japan's Nikkei closed Monday's session 4.5% lower while European stocks dropped in midday trading.

Meanwhile, the dollar sank to a three-year low against the yen.

Investors will get a fresh reading on nationwide manufacturing activity from the Institute of Supply Management at 10 a.m. ET. The ISM index is forecast to fall to a reading of 49 from 50.7 for January. Any reading below 50 indicates a contraction in manufacturing.

The Commerce Department releases a report on construction spending, also at 10 a.m. ET. That report is also expected to show a decline.

The nation's major automakers are due to report February sales results, with sales tracker Edmunds.com forecasting that sales will be off 2.3% from year-ago results, but up sharply from the weak sales reported in January.

Oil prices were sharply lower in early trading, another sign of recession worries among investors. Light, sweet crude for April delivery fell 81 cents to $101.03 a barrel in electronic trading.

In major corporate news, Dow component Boeing (BA, Fortune 500) suffered a surprise loss of a contract for new refueling tankers from the U.S. Air Force that could be worth as much as $40 billion. Shares were down more than 5% in early Frankfurt trading

A joint venture between rivals Northrop Grumman (NOC, Fortune 500) and European Aeronautic Defense and Space Co., the parent of commercial aircraft maker Airbus, won the contract instead. Northrop shares gained 5.3% in Frankfurt while EADS saw shares soared 7.4% in early trading in Paris Monday.

Another Dow component, United Technologies (UTX, Fortune 500) saw its shares fall 3.4% in early Frankfurt trading after it announced Sunday that it made an unsolicited offer to buy Diebold Inc. (DBD) for $2.63 billion. The offer, worth $40 a share, represents 66% premium from Diebold's closing price Friday.

Banking giant HSBC's shares sank 1.8% in London trading after it announced improved full-year earnings in spite of reporting $11.7 billion in charges related to its U.S. subprime mortgage holdings and other credit provisions rose.

Berkshire Hathaway (BRK.A), the firm controlled by investment guru Warren Buffett, reported late Friday that fourth-quarter earnings fell 18%, due to weakness from its construction business and thinner margins on insurance underwriting and reduced investment returns. But the earnings topped forecasts and the company reported that its per-share book value, its key measure of performance rose by 11% from year-earlier levels, roughly double the performance of the S&P 500 during the year.

Troubled bond insurer Ambac Financial Group (ABK) said late Friday it will cut its quarterly dividend to a penny a share and suspend its structured finance business to free up capital.

Embattled online broker E*Trade Financial Corp. (ETFC) plans to give its CEO position to Donald Layton, who has held the chairman post there since fund Citadel Investment Group made a $1.75 billion investment in the firm in November, according to a report in the Wall Street Journal. The report says the move could be a precursor to the company being put for sale.