Equity index futures pointed to a flat opening on Tuesday after Moody's said it would review France's credit rating and investors grappled with less-than-stellar earnings from some big corporations.
International Business Machines Corp's quarterly results failed to impress investors used to a robust showing from the technology bellwether. That added to worries over lackluster corporate information technology spending. IBM
Moody's cautioned it may slap a negative outlook on France's Aaa credit rating in the next three months if costs from helping to bail out banks and other euro zone members stretch its budget too thin.
Moody's comments come a day after Germany's finance minister cautioned not to expect a solution to the region's debt crisis at an EU conference this weekend.
We had a huge run upwards when people thought maybe this wasn't so bad, we're coming out of it, and then we find out because of the comments made in Europe that we're not even close to solving it, said Doug Roberts, chief investment strategist at Channel Capital Research.com.
S&P 500 futures fell 1 point 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 dropped 37 points, but Nasdaq 100 futures rose 5.75 points.
Goldman Sachs Group Inc
Bank of America Corp
U.S. stocks suffered their worst loss in two weeks on Monday after comments from Germany's finance minister renewed investor fears over Europe.
(Editing by Jeffrey Benkoe)