Markets to open lower on Greece, earnings help Dow
U.S. stock index futures pointed to a lower open on Tuesday after Germany demanded new austerity measures from Greece, prompting worries over Greek debt, although strong earnings reports limited losses in the Dow.
Both DuPont and Co
Ford Motor Co also posted a profit that topped estimates and raised its 2010 forecast, though the stock slid 1 percent at $14.32.
Greece's borrowing costs rose to a 12-year peak on fears that assistance would come too late to avoid a sovereign debt default.
Financial stocks will be in focus as the chief executive of Goldman Sachs Group Inc was to testify before a Senate subcommittee examining the causes of the financial crisis.
Earnings have been very good, especially in the manufacturing sector, but right now the markets are more concerned with what's going to happen with Greece and Goldman, said John Brady, senior vice president at MF Global in Chicago.
S&P 500 futures fell 4.7 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 industrial average futures dropped 13 points, easing from earlier lows on the DuPont and 3M results. Nasdaq 100 futures lost 4.75 points.
Texas Instruments Inc reported earnings that beat estimates by a penny late Monday and gave a better-than-expected revenue outlook. The stock fell 1.3 percent to $26.80 premarket.
Investors awaited the release of the S&P Case/Shiller Home Price Index for February at 9 a.m. EDT. In addition, the Conference Board reports April consumer confidence at 10 a.m. EDT.
If we see that home prices stabilized in the month, that could help support equities. But if Case/Shiller comes in worse than expected, you could see a drop, Brady said.
June crude futures declined 1 percent on fears the Greece problems could pressure demand and push down energy shares.
Japan's Nikkei stock average <.N225> closed up 0.4 percent on Tuesday after it found solid support at its 25-day moving average at around 11,100, while European shares fell 1.5 percent on Greece, led by banking stocks.
U.S. stocks edged lower Monday as bank shares declined on fears that financial reform legislation wending through Congress will curb profits, while strong Caterpillar Inc results buoyed the Dow.
(Editing by Jeffrey Benkoe)
© Copyright Thomson Reuters 2024. All rights reserved.