(By Salman - iStockAnalyst Writer)
US stock futures retreated before the opening bell on Tuesday as investors remained worried about the health of the banking sector.
At 8:15 am ET, Standard & Poor's 500 Index futures expiring in March tumbled 15.30 points to 804.80. Dow Jones Industrial Average futures plummeted 119 points to 7660. Nasdaq Composite Index futures dropped 23.75 points to 1205.50.
Shares of Citibank (NYSE: C) and J.P Morgan (NYSE: JPM) slipped over 3% in European trade. Bank of America (NYSE: BAC) slid more than 2% in Frankfurt.
Early on Tuesday, Wal-Mart Stores Inc. (NYSE: WMT) said that its fourth-quarter net income fell 7.4% to $3.79 billion, or 96 cents a share, from $4.1 billion, or $1.02 a share, in the prior year quarter. On an adjusted basis, the retail giant earned $1.03 a share, beating the average analyst estimates of 99 cents. Revenue rose 1.7% to $109.1 billion.
Liberty Media Corp. (NASDAQ: LINTA) announced on Tuesday that it has agreed to invest $530 million in struggling satellite radio company Sirius XM Radio Inc. (NASDAQ: SIRI) in the form of loans.
Meanwhile, Trump Entertainment Resorts Inc. (NASDAQ: TRMP), the casino firm founded by Donald Trump filed for Chapter 11 bankruptcy protection on Tuesday.
Tuesday is the deadline for General Motors Corp. (NYSE: GM) and Chrysler LLC to submit restructuring plans to the federal government.
Also, U.S. President Barack Obama is expected to sign a $787 billion economic stimulus bill into law on Tuesday. The U.S. Congress on Friday approved the massive $787 billion stimulus bill, aimed at rescuing the economy from deepening recession.
European stocks retreated in afternoon trade. At 12:56 pm London time, the U.K. FTSE decreased 83.92 points or 2.02% to 4,051.15. The German DAX and French CAC shed 2.31% and 2.11% respectively.
Asian stocks finished with sharp losses. The Nikkei 225 fell 104.66 points or 1.35% to 7,645.51. The Hang Seng index of Hong Kong slumped 510.48 points or 3.79% to 12,945.40.
NYMEX crude oil for March delivery declined 71 cents, or 2%, to $36.80 a barrel before the opening bell.
Disclosure: Author does not own any of the stocks discussed here.
