By Sara Sjolin, MarketWatch
Charles Plosser speaks at 12:45 p.m.
LONDON (MarketWatch) -- U.S. stock futures pointed to a downbeat
day on Wall Street on Tuesday, as a deadlock in Greece's debt talks
shook global markets and fueled concerns the country will be cut
loose from its rescue program.
Investors could find other cues in the latest housing-market
index, the Empire state manufacturing reading and a Federal Reserve
speaker, all due later in the day.
Futures for the Dow Jones Industrial Average (DJH5) lost 51
points, or 0.3%, to 17,931, while those the S&P 500 index
(SPH5) dropped 7.30 points, or 0.4%, to 2,086.20. The Nasdaq 100
index (NDH5) fell 2.50 points, or 0.1%, to 4,374.59.
Greece is -- still -- the word: U.S. markets were closed for
Presidents' Day on Monday, so investors did not have a chance to
react to the latest news on Greece until Tuesday. Talks among
eurozone finance ministers broke down abruptly on Monday, after
Greece's new anti-austerity government rejected an extension to its
240-billion-euro ($272 billion) bailout program under the
conditions offered by its European partners.
Greek Prime Minister Alexis Tsipras and his finance minister,
Yanis Varoufakis, said the terms of the deal hurt the Greek economy
and society, and asked for looser conditions on the bailout
program.
Greece's current program expires at the end of February. If
negotiations end in a deadlock, the Mediterranean nation will lose
access to the rescue loans that have kept it afloat for almost five
years, potentially setting the scene for a default and Greece's
withdrawal from the shared currency, or "Grexit".
"With investors starting to fret over the genuine prospect of
Greece printing drachma in the coming weeks, it looks like global
markets are in for a turbulent ride," said Mike McCudden, head of
derivatives at Interactive Investor, in a note. "However, with a
'Grexit' remaining highly unlikely -- the eurozone traditionally
taking negotiations to the wire -- any panic dips could present
buying opportunities."
Finance ministers from the full European Union, known as Ecofin,
were meeting on Tuesday, and a new meeting of the Eurogroup, a
smaller group of eurozone finance ministers might be scheduled for
Friday. Read: These 5 charts explain the latest Greek drama
Greece's Athex Composite index slid 3.5% to 829.47, while the
Global X FTSE Greek 20 ETF (GREK) slumped 7.3% ahead of the U.S.
open.
Data: Ahead of the data , Tuesday delivers only two major
readings. The Empire state index is out at 8:30 a.m. Eastern Time,
with economists surveyed by MarketWatch expecting a slight dip to 9
in February, from 10 in January. The expected slip comes on the
back of a solid January, when the index rose 11.2 points.
At 10 a.m. Eastern Time, the NAHB housing-market index is due.
It's forecast to have increased to 59 in February, from 57 last
month.
Philadelphia Fed President Charles Plosser will speak on
monetary policy and the economic outlook at an event in
Philadelphia at 12:45 p.m. Eastern Time.
Earnings: Reporting ahead of the bell, AMC Entertainment Holding
Inc.(AMC) is projected to report fourth-quarter earnings of 6 cents
a share, according to a consensus survey by FactSet.
After the market closes, Fossil Group Inc.(FOSL) is forecast to
post fourth-quarter earnings of $3.07 a share.
Also reporting late, Potbelly Corp.(PBPB) is expected to post
fourth-quarter earnings of 3 cents a share, while Goodyear Tire
& Rubber Co.(GT) is projected to post earnings of 60 cents a
share.
Other markets: European markets were mostly lower, slammed by
Greece. In Asia, most indexes closed higher, with the Shanghai
Composite Index notching a seven-session winning streak.
Metals prices dropped across the board, while oil (CLH5) moved
higher. The ICE dollar index (DXY) was little changed.
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