March 11 (Bloomberg) -- U.S. stock-index futures declined. Nortel Networks Corp. dropped in Europe after North America's biggest phone-equipment maker said it won't file financial statements on time and may restate 2003 results.

Halliburton Co. fell after the Wall Street Journal said the No. 2 oilfield-services company will be investigated by the U.S. Justice Department for allegedly overcharging for fuel in Iraq.

Standard & Poor's 500 Index futures expiring this month lost 2.6 to 1117.70 at 10:15 a.m. in London. Dow Jones Industrial Average futures slid 22 to 10,23847. Nasdaq-100 Index futures fell 7 to 1407.50.

The S&P 500 had its biggest drop since October yesterday, cutting its gain to 39 percent from its 2003 low, which was exactly one year ago today. The Nasdaq Composite Index has dropped for four days since a government report last said the U.S. economy created fewer jobs than expected.

``We've had a very good year and now expectations and share prices have run a bit ahead of themselves,'' said Alison Sinclair, a fund manager at Britannic Asset Management, which oversees $30 billion in assets. ``We now need to look at the big picture, the economy and in particular the job market, to be able to move a step forward.''

A Labor Department report Friday showed the world's biggest economy created 21,000 jobs last month, below the median forecast of 130,000 in a Bloomberg News survey of economists.

Profit growth for S&P 500 members will slow to 13 percent this year from 18 percent, according to Thomson Financial.

Nortel, Halliburton

Nortel Networks tumbled 61 cents, or 8.9 percent, to $6.27 in Germany. The Brampton, Ontario-based company it's re-examining accruals and provisions from prior periods and will likely revise results for 2003 for a second time and some quarterly reports for that year.

Halliburton lost 41 cents to $29.56 in Germany. Pentagon officials notified members of Congress that the Defense Department had asked the Justice Department to join the investigation of the Houston-based company, the Wall Street Journal said. The broadening of the probe is ``highly significant,'' an unidentified military official told the newspaper.

Wendy Hall, a spokeswoman for Houston-based Halliburton, said the referral to the Justice Department was to be expected and doesn't imply a condemnation of the company's business practices, the newspaper reported. Halliburton spokeswoman Cathy Gist told Bloomberg News that the company had no additional comment on the Wall Street Journal story.

Oracle, National Semiconductor

Oracle Corp., the world's third-largest software maker, lost 19 cents to $12.22 in Germany. The company will probably report a profit of 12 cents a share for the fiscal third quarter through the end of February, up from 11 cents in the year-ago period, according to estimates by Thomson Financial. Oracle is expected to publish earnings after the close of regular trading.

National Semiconductor Corp., which makes chips that boost battery life in mobile phones and laptops, also will report fiscal third-quarter results today. The company will probably report a profit of 41 cents a share for the three months through February, compared with a loss of 3 cents in the year-ago period, according to estimates by Thomson Financial. National Semiconductor shares slipped 20 cents to $38 in Germany.

Goodyear, Disney

Goodyear Tire & Rubber Co., the biggest U.S. tiremaker, lost 11 cents to $7.70 in Germany. The company said it's found ``no evidence of criminal intent'' by senior managers in Europe who have left the company after accounting lapses, the Wall Street Journal reported, citing Chris Aked, Goodyear's spokesman for Europe, the Middle East and Africa.

No laws were breached in Europe, the newspaper cited Aked as saying. Goodyear announced the departures on March 9, but hasn't disclosed which managers were involved or whether they resigned, retired or were dismissed, the newspaper said.

Walt Disney Co. lost 19 cents to $25.26 in Germany. President Robert Iger is unlikely to be selected as a candidate to succeed Chief Executive Officer Michael Eisner at the helm of the media company, the Wall Street Journal reported, without citing anyone.

Retail Sales

A government report released today may show that sales at U.S. retailers rose for a 10th month in February, according to a survey of economists.

The Commerce Department will probably report that purchases at retailers, excluding car dealerships, rose 0.5 percent last month after gaining 0.9 percent in January, according to the median of 67 forecasts. Sales including automobiles probably rose 0.6 percent in February after a decline of 0.3 percent. The report is set for 8:30 a.m. in Washington.

The S&P 500 yesterday lost 16.69, or 1.5 percent, to 1123.89. The Dow average shed 160.07, or 1.5 percent, to 10,296.89. Both indexes had their biggest declines since Oct. 22 and fell for a third consecutive day. The Dow erased its gain for the year.

The Nasdaq Composite Index fell 31.01, or 1.6 percent, to 1964.15. The benchmark is down 61 percent from its record of 5048.62 reached four years ago yesterday.

To contact the reporter on this story: Albertina Torsoli in Milan at atorsoli@bloomberg.net.

Last Updated: March 11, 2004 05:42 EST