Credit gloom weighs on Wall Street
Futures decline as investors worry about deepening credit crisis, rising oil prices. Existing home sales on tap.
NEW YORK (CNNMoney.com) -- U.S. stock futures fell early Monday, pulled down by worries about the deepening credit crisis and higher oil prices.
Nasdaq and S&P futures traded lower about an hour and a half before the opening bell, suggesting a negative start for Wall Street trading.
Stocks ended a volatile week on Friday as investors worried about the prospects of mortgage finance giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) and Wall Street investment bank Lehman Brothers (LEH, Fortune 500).
Investors also expressed concern about the financial sector after Federal Reserve Chairman Ben Bernanke said Friday that trouble at banks and other investment companies continue to drag on the economy.
Finance companies: Wells Fargo (WFC, Fortune 500) chief John Stumpf dispelled rumors his company would make a bid for one of its credit-crunched rivals, according to a Financial Times report, saying it would interfere with "organic growth."
South Korean regulator Jun Kwang-woo warned the state-held Korea Development Bank against the purchasing of embattled U.S. investment bank Lehman Brothers, saying an acquisition could yield "too much burden," according to The Korea Times.
Oil: Investors focused on wildly unstable crude prices, which dropped $6.59 to settle at $114.59 a barrel on the New York Mercantile Exchange Friday.
Crude prices rose in early electronic trading Monday on worries about supply. U.S. crude for October delivery added 95 cents to $115.54 a barrel.
Housing: On the economic front, a report on July existing home sales is due at 10 a.m. ET.
Sales are forecast to have edged higher to a 4.9 million annual rate from 4.86 million, according to economists surveyed by Briefing.com.
Other markets: Stocks in Asia ended higher, with the benchmark Nikkei index rising sharply on Friday's Wall Street gains and falling crude prices.
European shares fell in morning trading, while the London markets were closed for a holiday.
The dollar drifted higher against the euro but fell versus the yen. 
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