Stock futures are sharply lower amid several U.S. corporate downside pre-announcements and worries over the health of Portuguese banks; S&P and Dow -1.1%, Nasdaq -1.2%.
U.S. stocks are taking cues from the European periphery nations after Banco Espirito Santo missed a debt payment, sparking worries of a potential default by Portugal's second largest bank; the U.K.'s FTSE trades -1% with financials leading the retreat, while Germany's DAX and France's CAC each -1.8%.
In the forex market, investors are reducing their exposure to the euro while boosting the dollar and the yen.
A better than expected U.S. jobless claims report was almost unnoticed.
Potbelly -18.7% and Lumber Liquidators -21.7% premarket after both primed the market for disappointing quarterly reports.
Treasurys are rallying, with the 10-year benchmark higher by 13 ticks and its yield nearly 5 bps lower at 2.51%.
Still ahead: wholesale trade, EIA natural gas inventories.