U.S. stock index futures fell slightly on Tuesday as traders remained focused on high bond yields in Spain and cautious earnings outlooks weighed on sentiment.
“The market is experiencing a renewed set of fears with concerns over a global economic slowdown and continued worries stemming from the euro zone,” said Andre Bakhos, director of market analytics at Lek Securities in New York. “Investors are stepping back and taking a risk-off stance for the moment.”
“Throw in earnings season as another variable and we are back to an erratic environment,” he said.
S&P 500 futures fell 3.2 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 28 points and Nasdaq 100 futures sank 11 points.
European stocks were slightly down in morning trade, adding to the market’s two-session slide, as a weaker-than-expected German purchasing managers’ survey showed private sector activity in Europe’s largest country contracting for a third straight month.
Investors expected a flurry of earnings on Tuesday, from such U.S. companies as Apple, Broadcom, DuPont , Lockheed Martin, AT&T, and UPS.
The Canadian dollar opened at 98.10 cents U.S., down 0.25 of a cent from Monday’s close.
The euro was worth $1.2327, down 0.10 of a cent