U.S. stock futures add to losses after data; Dow down 0.65%

Forexpros - U.S. stock futures pointed to a lower open on Tuesday, as concerns the U.S. economic recovery was faltering and lingering worries about a possible downgrade of the U.S. sovereign debt rating prompted investors to shun riskier assets.

Dow Jones Industrial Average futures pointed to a loss of 0.65%, the S&P 500 futures declined 0.8%, while the Nasdaq 100 futures retreated 0.7%.

Stock futures added to losses after official data showed that U.S. personal spending declined unexpectedly in June, while personal income rose less-than-expected.

Meanwhile, concerns that the deal to raise the U.S. debt ceiling would not be sufficient to prevent ratings agencies from cutting the U.S. sovereign debt rating continued to weigh.

Shares in the financial sector were broadly lower in pre-market trade, with Bank of America falling 1.1%, Citigroup dropping 1%, while U.S.-listed shares of Deutsche Bank retreated 2.2%.

In earnings news, shares in the largest U.S. grain processor Archer Daniels Midland sank 4.2% after it reported a 65% drop in fiscal fourth quarter profit, as higher corn prices weighed on demand.

Prepaid wireless-service provider MetroPCS Communications saw shares plunge 17.5% after it said second quarter revenue totaled USD1.21 billion, short of expectations for revenue of USD1.23 billion.

Pharmaceutical giant Pfizer saw shares decline 1.6% after reporting second quarter revenue fell 1% to USD17 billion, as results were impacted by losses of exclusivity of several key products.

Other notable earnings slated for Tuesday include broadcasting giant CBS Corporation and drug maker Cephalon.

Across the Atlantic, European stock markets were lower as concerns over sovereign debt contagion and downbeat results from BNP Paribas dragged down shares in the financial sector.

The EURO STOXX 50 fell 0.9%, France's CAC 40 declined 0.95%, Germany's DAX tumbled 1.1%, while Britain's FTSE 100 shed 0.65%.

During the Asian trading session, Japan's Nikkei 225 Index sank 1.2%, while Hong Kong's Hang Seng Index lost 1.05% as fears over the global economic recovery overshadowed optimism over a deal to raise the U.S. debt ceiling.

Later in the day, the U.S. Senate was expected to vote in favor of a bill to raise the U.S. debt ceiling, after the House of Representatives approved legislation late Monday.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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