Investing.com - U.S. stock futures were lower on Tuesday, as investor confidence weakened amid renewed concerns over the handling of Spain’s financial troubles and after a flurry of disappointing euro zone economic reports.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a fall of 0.12%, S&P 500 futures signaled a 0.26% decline, while the Nasdaq 100 futures indicated a 0.24% loss.
Sentiment waned after Spain’s Treasury Minister Cristobal Montoro said earlier that financial markets were effectively closed to Spain because of the current high level of the country’s borrowing costs.
Meanwhile, revised data showed that the euro zone's services sector contracted at a slightly slower rate than initially expected in May, but still shrank at the fastest pace since June 2009, while another report showed that retail sales in the bloc dropped 1% in April.
Investor confidence had improved earlier, ahead of a teleconference of G7 finance ministers later Tuesday, to discuss the euro zone’s debt crisis.
Financial stocks were expected to be active after the New York Times reported on Monday that Goldman Sachs cut fewer than 50 jobs last week in order to trim expenses, as the U.S. lender’s revenue prospects worsen.
The reductions included some managing directors, the second-highest position at the firm after partners.
Meanwhile, JP Morgan saw shares fall 0.32% in after hour trade, on reports the bank may announce a USD4.2 billion second-quarter loss in its chief investment office. The loss would cut second-quarter earnings to 65 cents a share, a 30% decline from an earlier estimate of 93 cents.
Elsewhere, courier giant FedEx Corp. was also likely to be in focus after saying it retired 24 jets to cut capacity in the U.S. domestic Express division, as a slowing economy saps shipping volumes for the operator of the world’s largest cargo airline.
In the energy sector, Exxon Mobil CEO Rex Tillerson said earlier that the company is considering exporting liquefied natural gas from the U.S. Shares in Exxon Mobil were up 0.04% in early trading.
The International Energy Agency said on Tuesday that the U.S. will overtake Russia as the world's biggest natural gas producer in 2017, but it will still need imports to feed a voracious appetite.
Other stocks in focus included United Natural Foods, due to report earnings before the closing bell, and real estate firm Hovnanian Enterprises, due to report afterwards.
Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 fell 0.29%, France’s CAC 40 rose 0.32%, while Germany's DAX dropped 0.90%. Markets in the U.K. remained closed for a national holiday.
During the Asian trading session, Hong Kong's Hang Seng Index rose 0.40%, while Japan’s Nikkei 225 Index jumped 1.04%.
Also Tuesday, official data showed that German factory orders dropped 1.9% in April, compared to expectations for a 1% decline, fanning concerns over the impact of the ongoing sovereign debt crisis on the region’s largest economy.
Later in the day, the U.S. Institute for Supply Management was to release a report on non-manufacturing activity.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a fall of 0.12%, S&P 500 futures signaled a 0.26% decline, while the Nasdaq 100 futures indicated a 0.24% loss.
Sentiment waned after Spain’s Treasury Minister Cristobal Montoro said earlier that financial markets were effectively closed to Spain because of the current high level of the country’s borrowing costs.
Meanwhile, revised data showed that the euro zone's services sector contracted at a slightly slower rate than initially expected in May, but still shrank at the fastest pace since June 2009, while another report showed that retail sales in the bloc dropped 1% in April.
Investor confidence had improved earlier, ahead of a teleconference of G7 finance ministers later Tuesday, to discuss the euro zone’s debt crisis.
Financial stocks were expected to be active after the New York Times reported on Monday that Goldman Sachs cut fewer than 50 jobs last week in order to trim expenses, as the U.S. lender’s revenue prospects worsen.
The reductions included some managing directors, the second-highest position at the firm after partners.
Meanwhile, JP Morgan saw shares fall 0.32% in after hour trade, on reports the bank may announce a USD4.2 billion second-quarter loss in its chief investment office. The loss would cut second-quarter earnings to 65 cents a share, a 30% decline from an earlier estimate of 93 cents.
Elsewhere, courier giant FedEx Corp. was also likely to be in focus after saying it retired 24 jets to cut capacity in the U.S. domestic Express division, as a slowing economy saps shipping volumes for the operator of the world’s largest cargo airline.
In the energy sector, Exxon Mobil CEO Rex Tillerson said earlier that the company is considering exporting liquefied natural gas from the U.S. Shares in Exxon Mobil were up 0.04% in early trading.
The International Energy Agency said on Tuesday that the U.S. will overtake Russia as the world's biggest natural gas producer in 2017, but it will still need imports to feed a voracious appetite.
Other stocks in focus included United Natural Foods, due to report earnings before the closing bell, and real estate firm Hovnanian Enterprises, due to report afterwards.
Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 fell 0.29%, France’s CAC 40 rose 0.32%, while Germany's DAX dropped 0.90%. Markets in the U.K. remained closed for a national holiday.
During the Asian trading session, Hong Kong's Hang Seng Index rose 0.40%, while Japan’s Nikkei 225 Index jumped 1.04%.
Also Tuesday, official data showed that German factory orders dropped 1.9% in April, compared to expectations for a 1% decline, fanning concerns over the impact of the ongoing sovereign debt crisis on the region’s largest economy.
Later in the day, the U.S. Institute for Supply Management was to release a report on non-manufacturing activity.