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Dow futures briefly fall 100 after Russian jet downed

U.S. stock index futures indicated a lower open Tuesday after news of a downed Russian warplane near the Syrian border.

Dow futures briefly fell more than 100 points, while S&P 500 and Nasdaq futures dropped more than 0.6 percent.

A Russian warplane was shot down near the Syrian border Tuesday after it reportedly entered Turkish airspace. State-run Turkish news service Anadolu Agency said that the downed warplane was a Russian-made SU-24 and had been engaged by two Turkish F16 jets

Russian President Vladimir Putin said the incident would have serious consequences for Moscow's relations with Ankara.

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

European markets extended losses on Tuesday after news of the downed plane.

Revised third-quarter GDP came in as expected, up 2.1 percent from the original reading of 1.5 percent.

Treasury yields came off session lows, with the 2-year near 0.91 percent and the 10-year at 2.22 percent.

Consumer confidence is expected to rise to 99.5 from 97.6, when it's reported at 10 a.m. ET.

The S&P/Case Shiller composite index of 20 metropolitan areas gained 5.5 percent in September on a year-over-year basis compared with 5.1 percent in the year to August. It was above the 5.1 percent estimate from a Reuters poll of economists.

The big number markets are waiting for is the November employment report due on December 4, after October's report of 271,000 nonfarm payrolls and a surprise pickup in wages. That report will have direct bearing on the Fed's rates decision on December 16.

"The Fed was already promoting the idea of a December rate hike well ahead of that very strong October payroll report, thus the odds that lift-off begins at the upcoming meeting are extremely elevated. We noted weeks ago that the largest precondition to tighten in December would be the ability to get the market to 'buy in' to the idea of a hike," said chief U.S. economist at RBC Capital Markets, Tom Porcelli.

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"With market odds now sitting at roughly 75 percent that they go, it looks as though the committee has done its job from a communications standpoint," Porcelli added.

Meanwhile, the markets are slowing down and preparing for holiday mode, with trading closed Thursday for the Thanksgiving holiday. Stocks Monday traded on the lowest volume in a month.

Oil prices saw some gains after the Russia jet news and fluctuations will likely remain in focus Tuesday, after sharp moves were seen on Monday following comments from oil cartel OPEC's largest producing Saudi Arabia pledged to work towards oil price stability, sending prices up from session lows.

Brent futures gained more than 2 percent to near $45.79 a barrel, while U.S. West Texas Intermediate (WTI) crude (WTI) crude was up 70 cents at $42.42 a barrel, as strength in the dollar capped gains.

The U.S. dollar index briefly hit 100 for the first time since March on Monday and continued to hold higher against major world currencies.

Investors also took in earnings reports Campbell Soup, Dollar Tree, Hormel Food, and Tiffany, ahead of the bell. Hewlett Packard reports after the bell, as does Guess and TiVo.

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— CNBC's Patti Domm contributed to this report