U.S. equity futures dropped precipitously in early Tuesday trading following a day of thin trading as only stock markets were open in observance of Veterans Day Monday.

Overnight, European finance ministers and other leaders agreed to give Greece two more years on its bailout agreement to pay back the loans in exchange for further conditions and more austerity. However, leaders will not vote on whether to disperse the next bailout tranche until the meeting scheduled for November 20.

In other news around the markets, the German ZEW Economic Survey, a key indicator of economic sentiment that is correlated to growth, unexpectedly dropped to -15.7 in November from -11.5 in October, weaker than forecasts of a -9.8 reading.

Italy auctioned 6.5 billion euros of 12-month notes to yield 1.762%, below the previous 1.941%. Also, the bid-to-cover ratio fell slightly to 1.764 from 1.77 at the last auction.

German Finance Minster Wolfgang Schaeuble spoke overnight, stating that haircuts on Greek debt are out of the question but that maturity extensions and loan rate cuts as possible. He is concerned that hopes for Greece to sustain debt by 2020 are too ambitious.

• S&P 500 futures fell 9.2 points to 1,380.0.
• The EUR/USD was lower at 1.2680.
• Spanish 10-year government bond yields rose to 5.937%.
• Italian 10-year government bond yields rose to 5.047%.
• Gold fell 0.37% to $1,724.50 per ounce.

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Commodities

Commodities were lower overnight as energy once again led prices lower. WTI crude futures dropped 0.95% to $84.76 per barrel and Brent crude futures fell 1.14% to $107.83. Copper futures fell 0.88% to $343.75 per pound on global growth fears. Gold was lower and silver futures fell 0.64% to $32.32.

Currencies

Currency markets were in clear risk-off mode overnight as the dollar gained and the euro fell. The EUR/USD was lower at 1.2680 and the dollar fell against the yen in classic risk-off fashion. Overall, the Dollar Index gained 0.17% to 81.18 on strength against the Swedish krone, the euro, the Swiss franc, and the British pound. The AUD/USD also fell in line with the risk-off atmosphere and the EUR/AUD continued its decline, probing the lowest level in nearly three months.

Premarket movers

• Leucadia National Corp. (LUK) shares fell 0.52%  premarket following a 3.03% slide Monday as the company announced the purchase of Jefferies (JEF). Jefferies needed to be rescued following its rescue of Knight Capital Group (KCG).
• Microsoft (MSFT) shares fell 0.82%  premarket as the company announced that the head of its Windows division would leave the company active immediately and will be replaced by a company insider. The move is said to be so that the company can have a new vision for the next version of Windows. (Microsoft owns and publishes Top Stocks, an MSN Money site.)
  
• Smith & Wesson (SWHC) shares fell 0.28% following a 4.09% gain yesterday as the company increased guidance.

Earnings

• Dicks Sporting Goods (DKS) is expected to report third quarter earnings per share of $0.37 vs. $0.32 a year ago.
• Cisco Systems (CSCO) is expected to to report third quarter earnings per share of $0.46 vs. $0.43 a year ago.
• Home Depot (HD) is expected to report third quarter earnings per share of $0.70 vs. $0.60 a year ago.
• The TJX Companies (TJX) is expected to report third quarter earnings per share of $0.61 vs. $0.53 a year ago.

Economics

On the economics calendar Tuesday, the NFIB Small Business Optimism Index is due out at 7:30 a.m. ET followed by the ICSC Goldman Store Sales report and the Redbook. Later, the Treasury is set to auction four-week, three-, and six-month bills and the Treasury budget statement is due out this afternoon. Also, Fed Vice-Chairman Janet Yellen is set to speak at 3:30 p.m. ET at the University of California, Berkley on central bank communications and will answer questions.

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