Futures Fall as Worry Replaces Euphoria
U.S. stock index futures pointed to a lower open Tuesday as the global rally from the previous session lost momentum and euphoria over Europe's near $1 trillion debt rescue package faded.
The major indexes each indicated drops approaching 1 percent as hopes for fiscal stability in Greece and other troubled eurozone countries faded. The Greek stock market, which jumped 9.1 percent Monday, fell more than 2 percent Tuesday, while Spain's market, which rose 14.4 percent Monday, was off 4.6 percent Tuesday.
Monday saw the Dow Jones Industrial Average secure its best one-day advance since March 23, 2009. The Dow has now had triple-digit moves, either up or down, in eight of the past ten sessions, after registering only three triple-digit moves between March 8 and April 26 of this year.
European shares were lower in the wake of their massive surge during Monday's session with banking stocks giving back some of their gains. Asian stocks also ended lower as the initial positive reaction to the debt deal gave way to broader concerns.
"This is a big plaster and there's a lot of work to do in terms of getting these budget deficits under control and it's also a reminder that the financial sector isn't in great health," Marc Ostwald, strategist at Monument Securities, told CNBC.
Greece will reportedly submit its request for the first installment of the aid package Tuesday from both the European Union and the International Monetary Fund. Those funds will be used to refinance a 10-year bond issue that matures on May 19.
The U.S. economic calendar is light once again with March wholesale trade numbers the only scheduled government release. That will come at 10 am New York time, with economists expecting a 0.5 percent increase following a rise of 0.6 percent in February.
The Treasury is set to auction $38 billion in 3-year notes, with the results available shortly after 1 pm.
The day's most notable earnings reports will come after the closing bell, with Dow component Walt Disney and top videogame maker Electronic Arts scheduled to report.
Google received both good and bad news ahead of trading. Its Android operating system has displaced iPhone maker Apple from the number two spot in the rankings of most-used smartphone software behind Blackberry maker Research in Motion . But Sprint says it will no longer sell Google's Nexus One smartphone.
In other news, investor Carl Icahn has increased his stake in the mobile phone maker Motorola , according to an SEC filing.
And Toyota is forecasting a smaller-than-expected profit for the current fiscal year, hurt by aggressive sales incentives, a rising Japanese yen, and Europe's debt problems. Separately, Toyota said it's reviewing NHTSA's investigation into a 2005 recall related to a steering wheel part, and also says it is cooperating with the investigation.