Before the bell: S&P futures -15.45, Nasdaq -26.00
U.S. stock futures tumbled, indicating the Standard & Poor’s 500 Index will extend last week’s decline, as speculation Germany is preparing for a Greek default spurred turmoil in global financial markets.
Officials in Merkel’s government are debating how to shore up German banks in the event that Greece fails to meet the budget-cutting terms of its aid package and is unable to get a bailout-loan payment, three coalition officials said on Sept. 9. Merkel is due to hold talks on the debt crisis with European Commission President Jose Manuel Barroso today.
Morgan Stanley (MS), Goldman Sachs Group Inc. (GS) and JPMorgan Chase & Co. (JPM) slumped abbout 2%, following losses in European banks.
NetLogic Microsystems Inc. (NETL) jumped 50 percent to $47.96. Broadcom Corp. (BRCM), the maker of communications chips for Apple Inc.’s mobile devices, agreed to buy NetLogic for about $3.7 billion to expand its product range. Shares of BRCM -3.6%.