* Global markets fall on credit jitters
* Bernanke, Paulson, Cox set to testify
* General Motors suspends dividend, cuts jobs
* Retail sales point to consumer weakness
(Updates prices)
By Ellis Mnyandu
NEW YORK, July 15 (Reuters) - U.S. stocks headed for a
lower open on Tuesday as concerns about the credit crisis'
impact on the financial sector curbed investors' appetite for
riskier assets and sent stocks lower around the globe.
Stocks fell about 2 percent in Japan and Europe. The euro
surged to an all-time high against the dollar, while oil prices
rebounded. Cautious investors gravitated toward the relative
safety of government debt.
Bank shares were poised to lead losses, with shares of U.S.
Bancorp <USB.N> down 6.6 percent at $21.80 before the bell
after it said mounting credit losses led to a
larger-than-expected drop in quarterly profit. For details, see
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S&P 500 futures <SPc1> dropped 10.90 points and were below
fair value, a mathematical formula that evaluates pricing by
taking into account interest rates, dividends and time to
expiration on the contract.
Dow Jones industrial average futures <DJc1> tumbled 100
points, and Nasdaq 100 <NDc1> futures slid 11 points.
Investors will scrutinize testimony from Federal Reserve
Chairman Ben Bernanke before the Senate Banking Committee at 10
a.m. (1400 GMT).
"People are wondering what is he going to say with regards
to interest rates, with the economy being so brittle," said
Anthony Conroy, head trader at BNY ConvergEx, an affiliate of
the Bank of New York.
"You continue to see downgrades with financials, even at
these levels. I think that's creating more nervousness, and
nervousness creates volatility, and that's what we're seeing."
Shares of General Motors <GM.N>, a Dow component, climbed
2.8 percent to $9.65 after the automaker announced a
restructuring plan and said it is suspending its dividend as
part of an effort to bolster its finances. []
Among economic reports, government data showed retail sales
grew less than expected in June, while another report showed
producer prices, excluding volatile food and energy, were muted
last month.
Despite the U.S. government's efforts to calm markets with
a rescue plan for mortgage finance companies Fannie Mae <FNM.N>
and Freddie Mac <FRE.N>, investors feared the credit turmoil
may be escalating, raising risks for the U.S. economy and the
global financial system.
In addition to Bernanke, President George W. Bush, Treasury
Secretary Henry Paulson and Securities and Exchange Commission
Chairman Christopher Cox are all due to speak later on
Tuesday.
(Additional reporting by Deborah Jian Lee; Editing by Kenneth
Barry)
