Futures Lower After N. Korea Bomb Tests

By Madlen Read

NEW YORK -- Wall Street headed for a decline Tuesday, with investors rattled by North Korea's nuclear testing.

U.S. stock futures fell in premarket trading following the long holiday weekend. North Korea reportedly defied the United Nations by firing two short-range missiles after testing a nuclear bomb on Monday.

Investors already were nervous about the sustainability of the stock market's massive two-month rally, given the uncertainty surrounding the global economy. The tension between North Korea and the United Nations gave them another reason to trade with caution.

The market also is awaiting reports on U.S. home prices and consumer confidence. The S&P/Case-Shiller home price index is expected to show a slightly smaller drop in March than in February, while the Conference Board's consumer confidence index is anticipated to indicate a rise in May.

Before the market's open, Dow Jones Industrial Average futures fell 37, or 0.5%, to 8,223. S&P 500 index futures fell 6.20, or 0.7%, at 878.70. Nasdaq 100 index futures fell 15.75, or 1.1%, to 1,345.25.

Last week, the major indexes ended modestly higher, but only after seesawing on worries about the economy and banks. The Dow is still up 26.4% from its 12-year low hit on March 9.

Government bonds rose in early trading Tuesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.43% from 3.46% late Friday.

The dollar rose against other major currencies, while gold prices fell.

Light, sweet crude fell $1.90 to $59.77 per barrel on the New York Mercantile Exchange.