(By Salman - iStockAnalyst Writer)
US stock futures plunged on Tuesday as investors remained concerned ahead of aluminum giant Alcoa’s earnings report. Fresh fears about the health of banking system also weighed upon futures.
At 8:26 am ET, Standard & Poor's 500 Index futures declined 13.10 points to 817.30. Dow Jones Industrial Average futures slumped 108 points to 7808. Nasdaq Composite Index futures decreased 18.25 points to 1293.75.
US stocks dropped on Monday on renewed fears over the health of banking system. Shares also came under pressure on reports that IBM's deal to acquire Sun Microsystems is on the verge of collapse.
Earnings season unofficially kicks off on Tuesday after the closing bell with Aluminum giant Alcoa (NYSE: AA) reporting Q1 results.
Banking stocks retreated in pre market trading. Fresh forecasts from IMF suggest that toxic debts racked up by banks and insurers could spiral to $4 trillion (£2.7 trillion). Calyon Securities' analyst Mike Mayo said on Monday initiated coverage on several large banks with an "underperform" or "sell" rating saying that bank loan losses will exceed levels in the Great Depression.
Shares of semiconductor equipment maker Applied Materials Inc. (NASDAQ: AMAT) tumbled before the opening bell after it said that a major client cut its order by more than 85% to $250 million from $1.9 billion. Revenue climbed 12 percent, to $75.3 million from $67 million.
Late on Monday, blood-testing products maker Immucor Inc (NASDAQ: BLUD) reported that fiscal third quarter net income rose 1 percent to $19.5 million, or 27 cents a share, $19.3 million a year ago or 27 cents a share, in the prior year quarter.
According to The Wall Street Journal, several buyers have submitted bids for embattled insurer American International Group Inc.'s (NYSE: AIG) asset-management unit, but the offers are below the typical prices for such businesses.
On the front of economic data, consumer credit data for the month of February is scheduled for release at 14:00 am ET.
Elsewhere, Bank of Japan on Tuesday expanded collateral that it accepts in order to boost lending and bring about economic recovery.
European stocks retreated in afternoon trade. At 13:04 pm London time, the U.K. FTSE dropped 77.32 points or 1.94% to 3,916.22. The German DAX and French CAC subtracted 1.38% and 1.59% respectively.
Asian stocks finished with losses. The Nikkei 225 fell 25.08 points or 0.28% to 8,832.85. The Hang Seng index of Hong Kong slipped 69.07 points or 0.46% to 14,928.97.
NYMEX crude oil for May delivery declined as much as 93 cents, or 1.8 percent to $50.12 a barrel.
Disclosure: Author does not own any of the stocks discussed here.
