Oct. 4, 2011, 8:01 a.m. EDT
U.S. stock futures drop; Bernanke, Greece in focus
Fed chairman to testify on the U.S. economic outlook Tuesday
By Polya Lesova, MarketWatch
LONDON (MarketWatch) — U.S. stock futures accelerated their losses Tuesday, pressured by worries about Greece’s ability to avoid a debt default, as investors awaited comments on the American economy by the Federal Reserve’s chairman.
Futures on the Dow Jones Industrial Average fell 111 points to 10,418 and those on the Standard & Poor’s 500 stock index SP1Z -1.07% dropped 12.5 points to 1,073.80.
Nasdaq 100 futures ND1Z -0.96% declined 20.5 points to 2,044.70.
The blue-chip Dow index fell 2.4% on Monday to post its lowest close since September 2010.
European equity markets also fell deeper into negative territory Tuesday. Euro-zone finance ministers signaled last night that they will take a decision on whether to disburse more aid to Greece later in October than previously suggested.
The ministers also indicated that private bondholders may have to take bigger losses on debt holdings as part of the second Greek bailout.
The news — which came after the Greek government admitted Sunday that it won’t meet its deficit-reduction targets — only served to escalate worries that Greece may default on its obligations. Read more on Greece.
Dexia
Germany’s DAX 30 index fell 4% in afternoon trade, while the euro was steady at $1.3174 after sinking Monday.
Shares of Dexia dropped nearly 14% in Brussels on fears the French-Belgian bank may be split up. Dexia said in a statement that the size of its non-strategic portfolio of assets is having a harmful structural impact on the group.
In addition to the euro-zone debt crisis, investors will watch closely Tuesday’s testimony on the economic outlook by Fed Chairman Ben Bernanke before the Joint Economic Committee starting at 10 a.m. U.S. Eastern time.
The Fed chief may face questions about the effectiveness of its so-called Operation Twist, in which it swaps short-maturity bonds for longer-maturity securities, as well as about the sluggish economic recovery and about U.S. bank exposure to Europe.
Data on U.S. factory orders for August are also due later Tuesday.
Full article, including discussion of Apple's new iphone, here: http://www.marketwatch.com/story/us-stock-futures-drop-bernanke-greece-in-focus-2011-10-04
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
| 