Before the bell: S&P futures -0.7%, Nasdaq futures -1.0%
U.S. stock futures retreated, following the biggest quarterly slump for the Standard & Poor’s 500 Index since 2008, as Europe’s finance leaders prepared to weigh the risk of a Greek debt default.
Manufacturing in the U.S. probably expanded in September at the slowest pace in more than two years as the economic recovery showed signs of stalling, economists said before a report today. Construction spending fell in August, another report may show.
The Greek cabinet approved the draft 2012 budget yesterday, and will present it to parliament today, but while the government agreed to an additional €6.6B ($8.8B) of austerity measures demanded by the troika, the country won't meet its deficit target this year. Greece's 2011 deficit is now expected to be 8.5% of GDP vs. its 7.6% target; for 2012, the deficit is set to fall to 6.8%, still above the 6.5% target. The news has sent Asian and European shares tumbling, though Greece says it's optimistic about the next tranche of aid.