Stock futures signal mixed open

(Reuters) - Stock index futures pointed to a mixed open on Wall Street on Monday while investors worry about corporate results after dismal U.S. monthly jobs fueled economic fears. At 5:20 a.m. EST, futures for the S&P 500 were down 0.12 percent, Dow Jones futures were down 0.04 percent and Nasdaq 100 were up 0.1 percent.

Highlights:

* The focus will be on Alcoa , with the aluminum group kicking off the much-awaited corporate earnings season. Last week, Alcoa said it would slash more than 15,000 jobs, halve capital spending and sell four businesses as it reduces aluminum production in the face of the global economic downturn.

* The banking sector will be in focus after news that Citigroup Inc was closer to a deal on Sunday to join its Smith Barney business with Morgan Stanley's brokerage operation in a move that would create the world's largest retail brokerage. The creation of the joint venture would lead to Morgan Stanley making a cash payment to Citi of between $2.5 billion and $3 billion, a source familiar with the situation said.

* Oil fell more than $1 to below $40 a barrel, dragged down by widespread evidence that deepening recession is reducing global energy consumption. The decline came despite news that Saudi Arabia planned to cut output to below its agreed target, as well as gas supply disruptions in Europe as a result of the Russia-Ukraine dispute and tensions in the Middle East.

* U.S. Senate Democrats said on Sunday President-elect Barack Obama's proposals to stimulate the economy would likely undergo big changes to address their concerns and ensure they will revive economic growth.

* General Motors Corp has been in talks to sell its struggling Swedish brand Saab after the U.S. carmaker was approached two or three months ago by an investor looking to take it off the company's hands, GM Europe chief Carl-Peter Forster said on Sunday.

* U.S. shares tumbled on Friday after data showed the labor market deteriorated further in December, raising investor concerns about the outlook for profits, spending and a deepening recession.

* The Dow Jones industrial average <.DJI> ended down 143.28 points, or 1.6 percent, at 8,599.18. The Standard & Poor's 500 Index <.SPX> slid 19.38 points, or 2.1 percent, to 890.35. The Nasdaq Composite Index <.IXIC> fell 45.42 points, or 2.8 percent, to 1,571.59.

(Reporting by Blaise Robinson; Editing by David Holmes)