Gloom hangs over Wall Street
Futures decline as investors grow more anxious about bank sector and dollar hits record low; Bernanke testimony in focus.
NEW YORK (CNNMoney.com) -- U.S. stock futures tumbled early Tuesday as deepening concerns about the bank sector dragged on the dollar and sent overseas markets sharply lower.
At 8:53 a.m. ET, Nasdaq and S&P futures were lower, with a comparison to fair value suggesting opening losses for Wall Street.
A rout in financial shares dragged Wall Street lower Monday and overshadowed a government plan to bail out mortgage guarantors Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500).
Regional banks Jitters over regional banks have risen since mortgage lender IndyMac was seized by federal regulators.
Shares of Washington Mutual (WM, Fortune 500) and National City (NCC, Fortune 500) both dived around 30% Monday amid fears of more bank failures.
Dollar hits new low Credit worries also weighed on the dollar, which touched a fresh record low against the euro. The euro rose as high as $1.6038, beating its previous high of $1.6018.
Bernanke Investors will be closely following comments made by Federal Reserve Chairman Ben Bernanke. The Fed chief is due to give his semi-annual testimony before Congress at 10 a.m. ET.
He is also due to testify at a hearing about regulatory responses to recent market developments. Other witnesses at that Senate Banking hearing include Treasury Secretary Henry Paulson and Securities and Exchange Commission Chairman Christopher Cox.
Economy A trio of economic reports are on tap. The Producer Price Index, a measure of wholesale inflation, is due before the market open. Retail sales also are due to be released before the opening bell. A reading on business inventories comes at 10 a.m. ET.
GM restructuring GM announced that it would suspend its dividend, cut 20% of its workforce and sell off between $4 billion and $7 billion of its assets. CEO Rick Wagoner called the decisions "difficult," but said they were necessary for the automaker's survival. GM (GM, Fortune 500) has been struggling severely amid slumping U.S. sales.
Energy Oil prices wavered as traders worried about threats to supply. U.S. crude for August delivery held above $145 a barrel in electronic trading.
Earnings Chipmaker Intel Corp. (INTC, Fortune 500) is scheduled to release its second-quarter earnings at 4:00 p.m. ET.
Meanwhile consumer products giant Johnson & Johnson (JNJ, Fortune 500) said second-quarter profit jumped 8% to $1.17 per share on sales of consumer health and medical products. Analysts polled by Thomson Financial had expected $1.12 per share.
Global selloff Concerns about the U.S. bank sector pummeled markets worldwide. In Asia, stock markets fell sharply. European stocks sank in morning trading. 
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