October 11, 2011 by staff
Dow Futures, Stock futures are falling a day after the Dow Jones industrial average posted its biggest rise since early August. Investors fear that Slovakia can not approve a plan to strengthen European rescue fund. All 17 countries using the euro must agree on the plan, which is considered essential to resolving the debt crisis in the region. Sixteen countries have adopted so far.
Concern about the debt problem have weighed on equity markets for months. Investors fear that if Greece does not meet its debts, the banks holding Greek bonds in Europe and the U.S. suffering. That, in turn, could slow the global economy.
About 45 minutes before the opening bell Tuesday, Dow industrial average have dropped 70 points, or 0.6 percent, to 11,301.
Standard & Poor 500 futures are a 9 or 0.8 percent, in 1182. Nasdaq 100 have declined 10, or 0.5 percent, in 2267.
The Dow rose 330 points Monday, its biggest gain since Aug. 11. The S & P 500 rose 3.4 percent. Investors were upbeat after the French and German leaders said they completed a “complete response” to the debt crisis at the end of the month, including a plan to ensure that European banks have adequate capital.
However, on Tuesday, Europe’s fears returned. A “no” could recite the Slovak financial markets and complicate European efforts to tackle the debt crisis that has caused three countries to ransom.
In the U.S. aluminum producer Alcoa Inc. will become the first major company to report third quarter results after the close. Analysts expect earnings of S & P 500 to rise 12 percent over the same period last year, according to data provider FactSet. Revenue is expected to grow by 11 percent.
In corporate news, shares of Sprint Nextel Corp. ‘s fell 1 percent before the market opening. The stock has fallen 26 percent since Friday, when Sprint has said he wants to accelerate plans to upgrade its wireless network. Analysts say spending will increase significantly.
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