US STOCKS-Futures tumble as Spanish bank failure weighs

* Spain bails out locals bank

* U.S. existing home sales on tap

* Futures off: Dow 102 pts, S&P 10.8 pts, Nasdaq 18.5 pts

* For up-to-the-minute market news see [STXNEWS/US]

By Edward Krudy

NEW YORK, May 24 (BestGrowthStock) -U.S. stock index futures fell
on Monday as a Spanish government bailout of a local bank
refocused attention on Europe’s debt crisis that investors fear
could derail a global economy.

* The Bank of Spain said Saturday it took over Spanish
savings bank CajaSur after a planned merger with another small
lenders failed. CajaSur accounts for nearly 0.6 percent of
assets in Spain’s financial system. For more details, see
[ID:nLDE64L003]

* In a sign of risk aversion, the euro fell (Read more about the trembling euro. ) broadly as
Spain’s move highlighted weakness in the banking sectors of
some euro-zone members struggling with budget deficits.
Investors fear the bank failure may herald a wider banking and
credit crisis in Europe.

* “Again Europe is the driving force behind the lower
market this morning, with a failed Spanish bank reigniting
concerns and reminding investors that problems remain,” said
Andre Bakhos, director of market analytics at Lek Securities in
New York. “Until clarity and resolution are achieved the
volatility factor will remain high.”

* S&P 500 futures (SPc1: ) fell 10.8 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 (DJc1: ) dropped
102 points, and Nasdaq 100 futures (NDc1: ) lost 18.5 points.

* The S&P 500 has entered a technical correction, falling
more than 10 percent since a peak on April 23, as Europe’s
troubles have rattled markets. Investors are watching for the
S&P 500 to close beneath the May 6 “flash crash” intraday low
of 1,065.79, which may signal further losses.

* European shares were lower Monday morning, as a rebound
in mining shares was offset by worries in the banking sector
about the Bank of Spain’s move to rescue CajaSur .[.EU]

* Japan’s Nikkei average ended down 0.3 percent to its
lowest close in more than five months as investors remained
wary about taking on more risky assets without assurance that a
recent stock slide is over. [.T]

* Investors will watch existing home sales data for April,
due at 10 a.m. EDT (1400 GMT: ), for insight on the strength of
the U.S. recovery.

* S&P 500 company Campbell Soup Co (CPB.N: ) reported results
early Monday.

* U.S. stocks (Read more about the stock market today. ) snapped a three-day losing streak on Friday,
as investors bought beaten-down shares, including banks, on
bets that a financial reform bill won’t be as onerous as some
had feared.

Stock Investing

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)

US STOCKS-Futures tumble as Spanish bank failure weighs