NEW YORK (TheStreet) -- Stock futures saw losses accelerate heading into market open Tuesday as earnings reports from blue-chips disappointed.
S&P 500 futures were down 1%, Dow Jones Industrial Average futures fell 1.4%, and Nasdaq futures slipped 1.3%.
Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report was dragging on markets Tuesday after quarterly profit fell to 71 cents a share from 78 cents a year earlier. The tech giant said restructuring efforts and last year's $7 billion acquisition of Nokia's mobile phone business undercut income. Shares were tumbling 8.7% in premarket trading.
A strengthening dollar hurt profit at a number of key companies. United Technologies (UTX) - Get United Technologies Corporation Report disappointed after the company cuts its 2015 profit outlook to as high as $7.05 a share, citing currency. Analysts had expected $7.19 a share for the full year. Shares were down 3.4%.
Procter & Gamble (PG) - Get Procter & Gamble Company Report saw quarterly revenue slide 4.4% due to a stronger dollar, while second-quarter profit of $1.06 a share missed estimates by 7 cents. Shares dropped 3%.
Pfizer (PFE) - Get Pfizer Inc. Report was 1% lower despite beating quarterly expectations. Revenue fell 3.2% to $13.2 billion with management citing the loss of a number of exclusivity contracts for key drug treatments.
Caterpillar (CAT) - Get Caterpillar Inc. Report was plummeting 8.5% as lower oil prices hurt the company's bottom line. Net profit tumbled nearly 25% to $757 million, or $1.35 a share, while revenue slid 1.1%.
Durable goods orders for December missed expectations by an enormous margin, falling 3.4% compared to estimates for an increase of 0.7%. Core orders slid 0.6%, compared to an expected 0.9% increase, marking the fourth consecutive monthly drop.
"At first blush, this is a terrible report and we'll have to go back and revise our Q4 GDP estimate," said BTIG chief strategist Dan Greenhaus. "The odds of GDP printing 3.5% or more for the fifth quarter in the last six are now virtually nil. This report is always volatile so we hesitate to read too much since many other data points are telling another story. Nonetheless, this is not a good report."
New York-based markets were preparing to open the day as usual despite a blizzard that shuttered the city's infrastructure including subway service and schools. Trading volume is expected to be lower than normal as New York recovers from the winter storm.
European markets moved lower, paring the gains made in a rally over Monday's session. France's CAC 40 was down 1.04%, Germany's DAX slipped 0.97%, and London's FTSE 100 fell 0.51%. Markets have been jittery after anti-austerity party Syriza won a general election in Greece over the weekend, sparking fears the country could compromise its bailout conditions and trigger eurozone contagion.
New home sales data to be released midmorning is expected to show an increase of 452,000 homes over December, a healthy increase from November's 438,000 reading.
IBM (IBM) - Get International Business Machines (IBM) Report shares were down more than 1% after the company denied reports it was planning to ax 25% of its work force, oe around 100,000 workers. IBM said the reports were "ridiculous" and "baseless."
-- Written by Keris Alison Lahiff in New York.