Stocks poised to slip

NEW YORK (CNNMoney.com) -- U.S. stocks were poised to slip Tuesday, as optimism from the previous week faded and renewed worries about European banks and the global economy weighed on investors.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were lower ahead of the opening bell. Futures measure current index values against perceived future performance.

Stocks erased losses for the year Friday, with the major indexes rallying more than 1%, after a government report showed fewer jobs were lost in July than economists had expected. U.S. markets were closed Monday for Labor Day.

"We're in September, which is traditionally a softer month for stocks, and so far we've escaped that," said Peter Cardillo, chief market economist for Avalon Partners. "But lingering worries won't diminish until we get more indicators that show the decline in economic activity is leveling off and beginning to turn around again."

Economy: Fears that European banks may be in worse shape than what recent financial stress tests indicated also spooked investors, said Anthony Conroy, head trader at BNY ConvergEx Group.

"Investors are questioning the shape of the banks, because reports are saying that their sovereign debt holdings are weaker than previously thought," he said. "People see this news coming out and begin to worry more about a possible double-dip [recession], because you can't have a healthy economy without healthy financials."

The renewed worries come after an analysis in the Wall Street Journal early Tuesday said Europe's stress tests -- aimed at measuring the health of the nation's financial sector -- understated major banks' holdings of government debt.

President Obama will introduce a new $200 billion tax cut on Wednesday that will allow businesses to write off all new investments in equipment made between now and the end of 2011.

A reading on hiring from employment firm Manpower showed that employers are likely to remain reluctant to boost hiring in the fourth quarter.

Companies: Shares of Oracle (ORCL, Fortune 500) gained 6% in pre-market trading after the business software maker said it has hired former Hewlett-Packard (HPQ, Fortune 500) CEO Mark Hurd as its president.

Meanwhile,Barclays (BCS) shares sank more than 5% after the British bank announced its CEO John Varley will retire March 31. Bob Diamond, the bank's U.S.-born president and investment banking chief, will replace Varley.

World markets: European shares dipped in early trading. The CAC 40 in France tumbled 1%, the DAX in Germany fell 0.6%, and Britain's FTSE 100 lost 1%.

Asian markets ended mixed. Japan's benchmark Nikkei index dropped 0.8%, while the Shanghai Composite edged up 0.1% and the Hang Seng in Hong Kong gained 0.2%.

Currencies and commodities: The dollar rose against the euro and the British pound, but fell versus the Japanese yen.

Oil futures for October delivery dropped $1.36 to $73.24 a barrel. Gold for December delivery fell $2.50 to $1248.60 an ounce.

Bonds: The yield on the 10-year Treasury note fell to 2.65% from 2.71% late Friday.