US STOCKS-Futures down as Washington stalemate continues

* Futures off: Dow 131 pts, S&P 16 pts, Nasdaq 27.75 pts

By Chuck Mikolajczak

NEW YORK, Oct (KOSDAQ: 039200.KQ - news) 7 (Reuters) - U.S. stock index futures fell on Monday, as the partial government shutdown continued with no signs of a thaw in negotiations among politicians.

* 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. default.

* The United States faces a deadline of Oct. 17 to raise its $16.7 trillion debt limit, which could result in a default if not increased.

* 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 16 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 (DJI: ^DJI - news) industrial average futures lost 131 points, and Nasdaq 100 futures dropped 27.75 points.

* Apollo Tyres (BSE: APOLLOTYRE.BO - news) 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 premarket trade.

* Private equity (Swiss: PEHN.SW - news) 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.

* Former Dow component Alcoa Inc (NYSE: AA - news) as well as Yum! Brands Inc are scheduled to report results after the close as corporate earnings season gets underway.

* European stocks dropped in early trade, with one benchmark index hitting a four-week low, as the lack of progress in resolving Washington's budget standoff kept investors on edge.

* 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.