NEW YORK (CNNMoney) -- U.S. stocks were set to tumble at the opening bell Tuesday after Greece's prime minister called an unexpected public referendum to approve Europe's bailout deal.
Investors fear the referendum will jeopardize the deal, since the bailouts include austerity cuts that have not been popular with the Greek public.
World markets plunged on the news. Germany's DAX ( ) lost 5.4%, Britain's FTSE 100 ( ) dropped 3.1%, and France's CAC 40 ( ) tumbled 4.7%.
Dow Jones industrial average () and S&P 500 ( ) futures both fell more than 2% and Nasdaq ( ) futures were down about 1.7%. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.
Bank stocks were being hit hard, with shares of Bank of America (Fortune 500), JP Morgan Chase ( , Fortune 500), Wells Fargo ( , Fortune 500) and Goldman Sachs ( , Fortune 500) all falling more than 2% in premarket trades. European banks BNP Paribas ( ), Credit Suisse ( ) and Deutsche Bank ( ) were all down more than 8%.,
Thomson Reuters () shares fell 0.4% after the news agency also beat forecasts, earning 56 cents per share, up from 49 cents last year.
TransCanada (the controversial Keystone pipeline project, posted earnings of 59 cents per share, up from 54 cents a year earlier.), which is behind
Economy: Monthly reports on manufacturing, construction spending and auto sales will be released on Tuesday.
At 10 a.m. ET, the ISM index is expected to show manufacturing activity expanded in October to a reading of 53, up from 51.6 in September. Any level above 50 indicates growth in the sector.
Meanwhile, analysts surveyed by Briefing.com expect construction spending to have risen by 0.3% for September, following a 1.4% increase in August.
World markets: Asian markets ended mostly in the red, after a report showed China's manufacturing activity slowed in September. The Shanghai Composite ( ) was flat, while the Hang Seng ( ) in Hong Kong fell 2.5% and Japan's Nikkei ( ) shed 1.7%.
Oil for December delivery slipped $2.55 to $90.64 a barrel.
Gold futures for December delivery fell $31.90 to $1,693.30 an ounce.
Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 2.03% from 2.18% late Monday.
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|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.45%||4.52%|
|15 yr fixed||3.47%||3.55%|
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|15 yr refi||3.46%||3.54%|
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