Futures Backtrack From Friday's Rally

NEW YORK (TheStreet) -- Stock futures were pointing to a lower open Tuesday as investors came back from the long holiday weekend, backtracking from Friday's rally following the government's August jobs report, which wasn't as weak as feared.

U.S. stocks were also taking cues from European markets, which weakened on a Wall Street Journal report that asserted that the recent EU stress tests understated some lenders' holdings of risky debt.

Futures for the Dow Jones Industrial Average were down by 47 points at 10,389 and were 50 points below fair value. Futures for the S&P 500 were lower by 6 points at 1097 and were 6 points below fair value, and Nasdaq futures were lower by 8 points and were 10 points below fair value.

Overseas, Hong Kong's Hang Seng inched 0.2% higher, while Japan's Nikkei slipped 0.8%. The FTSE in London was shedding 0.9%, and the DAX in Frankfurt was down by 0.8%.

With no economic releases scheduled for Tuesday's session, fears about European banks' exposure to risky debt could weigh on shares throughout the session.

Oracle(ORCL) named former Hewlett-Packard(HPQ) CEO Mark Hurd as co-president, a month after Hurd resigned from HP on account of a sexual harassment investigation.

Barclays(BCS) named Robert Diamond, current head of the corporate and investment banking unit and the bank's wealth business, to group chief executive effective Oct. 1, 2010. Diamond succeeds John Varley, who is retiring on March 31, 2011.

In commodity markets, crude oil for October delivery was losing $1.82 to trade at $72.78 a barrel, and the December gold contract was lower by $4.50, trading at $1,246.60 an ounce.

The benchmark 10-year Treasury note was up by 14/32, diluting the yield to 2.663%.

Meanwhile, the dollar was trading higher against a basket of currencies, with the dollar index up by 0.6%.

--Written by Melinda Peer in New York.

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