Futures Point to Rough Start for Stocks

The U.S. market could decline early.
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Stock futures were showing a lower open for the major New York indices Tuesday as traders were fussing over upcoming quarterly results from several key U.S. firms and

Federal Reserve

Chairman Ben Bernanke's impending Senate appearance.

Futures for the

S&P 500

were down 11 points at 1217 and were 11 points below fair value, and

Nasdaq

futures were down 13 at 1790 and were 15 points under than fair value.

Later, Bernanke will testify before the Senate Banking committee about the Fed's decision to grant ailing mortgage insurers

Fannie Mae

(FNM)

and

Freddie Mac

(FRE)

access to its discount window to raise capital and discuss the broader economy.

Earnings statements from the financial sector will also help tell the session's story. Online brokerage

Charles Schwab

(SCHW) - Get Report

, as well as regional banks

State Street

(STT) - Get Report

,

First Horizon

(FHN) - Get Report

and

US Bancorp

(USB) - Get Report

report before the session begins.

The regional banks were adding pressure to the market Monday as the government seizure of

IndyMac

(IMB)

and a Fed and Treasury-sponsored plan to bolster Fannie and Freddie reminded investors that the subprime mess and credit crunch have yet to fully unwind.

Consumer conglomerate

Johnson & Johnson

(JNJ) - Get Report

and industrial equipment maker

Eaton

(ETN) - Get Report

are also due to report this morning.

Moving to commodities, crude oil was up $1.12 at $146.30 a barrel. Gold was rising $8.50 to $982.20 an ounce.

A bit later, investors will be perusing several economic data releases. Retail sales and the producer-price index for June, as well as the July Empire State index and May business inventories, will offer traders some idea of where the market may be headed.

In the fixed-income arena, 10-year Treasuries were up 9/32 in price, yielding 3.82%. The 30-year note was up 7/32 to yield 4.43%. The dollar was falling against the yen and the pound. Early this morning, the U.S. currency hit a record low against the euro at $1.6038.

Globally, major stock indices in Europe and Asia were showing weakness as deepening worry over the U.S. financial sector made its way overseas. The FTSE in London, the DAX in Frankfurt, and the Nikkei in Japan were all down at least 1.4%, while the Hang Seng of Hong Kong dropped 3.8%.