RPT-Wall St Week Ahead: Stocks may fall anew on recession fears

(Repeats column initially transmitted late Friday)

By Caroline Valetkevitch

NEW YORK, March 9 (Reuters) - U.S. stocks could face a further pounding this week as evidence mounts that the economy has entered a recession and problems in the financial sector accelerate.

The economic agenda is relatively light until Friday, when the Consumer Price Index will command attention, especially with oil's jump last week to a record more than $106 a barrel and the surge in other commodity prices.

But anxiety about inflation will take a back seat to the recession fears rippling from Wall Street to Main Street after Friday's government report showed employers cut payrolls for a second straight month.

At the same time, the financial sector has been pummeled by news showing further signs of troubles related to the subprime mortgage market.

For one, concern about the survival of Thornburg Mortgage Inc (TMA.N: Quote, Profile, Research) increased on Friday after the mortgage lender said it has $610 million of margin calls outstanding as of March 6, an amount exceeding its available liquidity.

The negative news trend is showing few signs of letting up, and could mean more losses for stocks.

"The sentiment right now is extremely bad," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey.