(Adds oil prices, quote on financials, stocks trading in
extended-hours trading)
By Jennifer Coogan
NEW YORK, May 6 (Reuters) - U.S. stock index futures fell
on Tuesday as oil prices hovered around $120, keeping pressure
on consumers and energy-dependent industries, and Fannie Mae
<FNM.N> reported a big loss, underscoring the troubles in the
U.S. housing and credit markets.
Fannie, the largest provider of U.S. home financing,
reported its third straight quarterly loss and said it would
lower its common stock dividend as it sees, significant credit
losses stretching into 2009.
Fannie shares fell more than 9.5 percent at $25.60 before
the open. Shares of Freddie Mac, Fannie's smaller counterpart,
were down nearly 8 percent at $23.55.
Further weighing on financial shares, money manager Legg
Mason Inc <LM.N> posted a quarterly loss and Swiss bank UBS
<UBSN.VX> said it will cut 5,500 employees.
Banking stocks were already rattled on Monday by doubts
about Bank of America's <BAC.N> takeover of troubled mortgage
lender Countrywide Financial Corp <CFC.N>.
"There's a real macro concern for the financials as a
whole," said Weston Boone, vice president listed trading,
Stifel Nicolaus Capital Markets in Baltimore. "The consumer is
feeling less wealthy with deterioration of housing prices and
the increases in cost of food and gas, and these large
institutions are all levered to the consumer with home equity
loans, auto loans, credit cards. They're on the wrong side of
the economy at the wrong time."
Energy shares may extend Monday's gains after Anadarko
Petroleum <APC.N> posted better-than-expected earnings late on
Monday that sent shares of the oil and gas company higher in
after-hours trading.
Crude oil futures were up 9 cents at $120.06 per barrel.
"With nothing major out there in terms of data, people will
be talking about the inflationary power of oil," Hogan said.
S&P 500 futures <SPc1> were down 7.3 points, 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> fell 59 points,
and Nasdaq 100 <NDc1> futures declined 8.75 points.
On Monday, the Dow Jones industrial average <> finished
down 88.66 points, or 0.68 percent, at 12,969.54. The Standard
& Poor's 500 Index <.SPX> shed 6.41 points, or 0.45 percent, to
1,407.49. The Nasdaq Composite Index <> lost 12.87 points,
or 0.52 percent, to 2,464.12.
(Editing by Kenneth Barry)
