Stock index futures edged lower on Tuesday as investors paused after the market hit a 13-month high in the previous session on expectations for prolonged low interest rates.
Wall Street reached fresh highs on Monday after the Group of 20 pledged to keep aid flowing to the world economy, strengthening investor appetite for risk and boosting global stocks and commodities while the U.S. dollar fell to a 15-month low.
A breather is expected after a strong rally yesterday, said Peter Boockvar, equity strategist at Miller Tabak + Co in New York. He said the dollar, which was little changed in early trading, was likely to keep stocks pressured.
S&P 500 futures dipped 3 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 fell 29 points, and Nasdaq 100 futures shed 4.25 points.
Chain store sales fell 0.1 percent in the week of November 7 versus a 0.1 percent rise in the previous week, according to ICSC/Goldman Sachs data. Weekly Redbook data is also expected before the bell. The weekly ABC consumer confidence index and the November IBD consumer confidence are also on tap.
Financial stocks are likely to rise after Europe's biggest bank, HSBC Holdings Plc , said losses on U.S. consumer loans fell for the first time in three years. The bank also reported solid third-quarter profit.
Diversified manufacturer Tyco International Ltd reported a 53 percent drop in quarterly net profit as soft economy sapped demand for industrial products.
U.S. Senate Banking Committee Chairman Christopher Dodd is likely to release a long-awaited draft bill on financial regulation reform. In a departure from the Obama agenda, Dodd will call for centralizing bank supervision in one agency -- a contentious proposal that would pit him against other lawmakers and the administration, sources said.
Bank of America Corp Chief Executive Ken Lewis, scheduled to speak at the Bank of America Merrill Lynch Financial Services Conference in New York, is likely to face questions on the search for a new CEO and ongoing legal issues surrounding the company. Lewis is set to retire at the end of the year.
Stocks to watch include Electronic Arts Inc , which posted a wider quarterly loss and said it would cut about 17 percent of its workforce in another round of restructuring for the video game publisher, and Priceline.com Inc , which posted a higher quarterly profit on a spike in bookings during an exceptionally strong summer travel season.
NuStarEnergy LP fell in late trading after announcing a common share offering, while MBIA Inc slid after posting a third-quarter loss.
(Reporting by Angela Moon; editing by Jeffrey Benkoe)