Stock futures pointed to a lower open on Tuesday as a report that Bank of America Corp and Citigroup Inc may need more capital revived fears about the stability of the struggling financial sector.

* Worries over the economic impact of the threat of a flu pandemic also weighed as New Zealand and Israel confirmed cases of swine flu, making them the latest countries hit by a new strain that has killed up to 149 people in Mexico.

* U.S. regulators have told Bank of America and Citigroup they may need to raise more capital following stress testing of the two banks, the Wall Street Journal reported.

* The shortfall amounts to billions of dollars at BofA, the paper said, citing people familiar with the bank, adding it is likely the U.S. Federal Reserve will have determined other banks might also need more capital. Shares of Bank of America and Citigroup were lower before the opening bell.

* Shares of Pfizer Inc
gained in premarket trade after the company reported first-quarter results and reaffirmed its full-year revenue outlook.

* Basically the market here is in a minor corrective move, and some of the headlines that are being reported are causing this little pullback after a substantial run-up, said Peter Cardillo, chief market economist at Avalon Partners in New York.

* On the data front, investors are awaiting a reading from the S&P/Case-Shiller Home Price Index for February to get a look at the state of the housing market, as well as a report on consumer confidence for April.

* Data on retail sales is also expected, while the Federal Open Market Committee begins a two-day meeting on interest rate policy with an announcement expected on Wednesday.

* S&P 500 futures fell 14.30 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 122 points, and Nasdaq 100 futures were down 19.25 points.

* In a fresh batch of quarterly earnings, results are expected from Bristol-Myers Squibb Co , United States Steel Corp and Sun Microsystems Inc .

* Stocks fell on Monday on concerns over the flu outbreak could dampen optimism about the economy, overshadowing a sweeping overhaul of General Motors Corp and gains in biotechnology stocks.

* The blue-chip Dow average is up 22.6 percent from a bear-market closing low on March 9, but remains down 8.6 percent for the year.

(Reporting by Leah Schnurr; editing by Jeffrey Benkoe)