NEW YORK (Dow Jones)--U.S. stock futures fell Tuesday morning, with investors bracing for another selloff as increasing fears over euro-zone debt issues and a slowing global economy triggered steep declines in overseas markets.
Dow Jones Industrial Average futures slid 114 points to 10415. The Dow dropped 258 points on Monday to close at 10655, the lowest level since Sept. 17, 2010.
Standard & Poor's 500 stock index futures slumped 12 points to 1074 and Nasdaq 100 futures dropped 18 points to 2047. Changes in stock futures do not always accurately predict stock moves after the opening bell.
In overseas markets, Europe was broadly and sharply lower, with the Stoxx Europe 600 shedding 3%, after Jean-Claude Juncker, the prime minister of Luxembourg who also presides over gatherings of euro zone finance ministers, said a decision on releasing the next tranche of Greek aid would likely not be made on Oct. 13 as previously suggested.
In addition, Goldman Sachs said it now expects the euro zone area to experience a "mild recession," German banking giant Deutsche Bank said third- quarter earnings would be substantially lower than expected and Dexia extended declines amid fears the troubled bank would need to be broken up.
Asian bourses also dropped, with Japan's Nikkei Stock Average off by 1.1% and Hong Kong's Hang Seng Index shedding 3.4%.
On the economic calendar, Federal Reserve Chairman Ben Bernanke will testify to the U.S. Joint Economic Committee on the economic outlook starting at 10 a.m., EDT. At the same time, data on factory orders for August will also be released.
Gold futures erased earlier gains to turn lower, falling to about $1,648 an ounce. Crude oil futures dropped below $76 a barrel. The U.S. dollar rose against the euro and the yen.
In the corporate arena, blue chip U.S. bank stocks were under pressure in premarket trading after Deutsche Bank's warning, with J.P. Morgan Chase down 1.2% and Bank of America losing 1.6%. Also, Citigroup was shedding 1.6%.
Elsewhere, AMR Corp. rallied 10%, after tumbling 33% on Monday, after the Allied Pilots Association said the large number of pilots who have chosen to retire recently did not do so because of inside information about the financial state of the airline.
Ford Motor said it reached a deal with the United Auto Workers on a new, tentative labor contract, but the auto maker's shares declined 1.6%. firms trim pension unemployment 9.2% plus markets down kennytroll is a shithead head between legs does NOT see a thing |
