Stocks: New quarter, old fears
Wall Street set for dismal start to third quarter, with blue-chips on the verge of bear market territory, oil near record highs and a selloff in overseas markets.
NEW YORK (CNNMoney.com) -- Stocks were poised for a bleak start to the third quarter on Tuesday as overseas markets closed lower and concerns about surging oil prices continued to dog investors.
At 8:12 a.m. ET, Nasdaq and S&P futures were lower, with a comparison to fair value suggesting heavy losses at the open.
Monday, which was the last trading day in June, brought an end to a brutal month and dour quarter.
In the second quarter overall, the Dow Jones industrial average lost 7.4% and the broader S&P 500 index lost 3.2%. The Nasdaq managed to add 0.6%.
The Dow is close to a level at least 20% off its highs in October - which is the technical definition of a bear market.
Meanwhile, a selloff in Asian and European stocks also weighed on futures.
Japan's Nikkei 225 ended 0.13% lower. The DAX index of German stocks fell nearly 2% and the U.K's FTSE was down 2.6%.
Energy Oil prices rose after hitting a record high in the previous session.
Light, sweet crude for August delivery was up $2.45 to $142.45 a barrel in pre-market electronic trading.
The front-month crude contract touched an all-time high of $143.67 a barrel on Monday.
Economy A key manufacturing index and report on construction spending are due to be released.
The Institute of Supply Management's survey of purchasing managers is expected to decline to a reading of 48.6 in June from 49.6 in May, according to economists surveyed by Briefing.com. The report is due out at 10 a.m. ET.
The government's report on construction spending will also be released at 10 a.m. ET. That report is expected to show the rate of spending on residential and nonresidential construction declined 0.4% in May after a 0.6% slide in April.
Autos June auto sales are also on tap and could move shares of General Motors (GM, Fortune 500) and Ford (F, Fortune 500), both of which are expected to post big monthly declines. GM shares touched a near 54-year low Monday.
The June report could be the worst month for auto sales since 1992. The annualized rate of auto sales in May was $14.3 million. Sales have tumbled amid record gas prices.
The national average price for a gallon of regular gas reached a new all-time high of $4.087, according to AAA on Tuesday. Gas prices are now 38% higher than year-ago levels.
Financials Credit market fears could send banks and financial stocks falling again. Lehman (LEH, Fortune 500) tumbled 11% Monday amid renewed speculation that the bank's ongoing credit woes could force it to sell all or part of itself sometime soon.
Swiss bank UBS AG (UBS) has restructured its board to counter criticism from shareholders over the "clubby nature of its ranks," the Wall Street Journal reported.
Separately, the Journal reported that the Justice Department is seeking to force UBS to turn over the names of wealthy U.S. clients who allegedly used the giant Swiss bank to avoid taxes.
Deals Brewer InBev SA is pushing ahead with its pursuit of Anheuser-Busch despite the U.S. brewer's rejection of its unsolicited $46 billion takeover bid.
InBev (INBVF) has made a plea to Anheuser (BUD, Fortune 500) shareholders to challenge the company's decision to turn down the buyout.
Last week, Anheuser announced a plan to boost its stock price and its profits in an effort to maintain its independence or extract a higher bid from the Belgian-Brazilian brewer.
Other markets In global trade, stocks in Japan ended the session slightly lower. European stocks closed sharply lower.
The euro rose to $1.5785 early Tuesday from $1.5775 late Monday.
Gold prices rose $2.20 to $930.50 an ounce in electronic pre-market trading. 
