Stock Futures Slip on Greek Default Fears

NEW YORK (TheStreet) -- Stock futures were sliding Tuesday as the political gridlock in Greece spooked investors.

Reports that Spain will bailout the country's third-largest bank by assets, Bankia, was also adding to ongoing uncertainty in the eurozone.

Futures for the Dow Jones Industrial Average were giving up 33 points, or 26.5 points below fair value, at 12,926. Futures for the S&P 500 were shedding 2.1 points, or 2.2 points below fair value, at 1364, and futures for the Nasdaq were losing 7.3 points, or 6.7 points below fair value, at 2629.

Stocks barely budged Monday as Wall Street reacted with restraint to the shifting political landscape in Europe following weekend elections in France and Greece.

But investor worries intensified Tuesday as the political gridlock in Greece showed no signs of relief.

"Greece is still facing a very, very difficult task in order to stay in the eurozone," said Dan Greenhaus, chief global strategist at BTIG.

The Greek conservative New Democracy party, which garnered most of the votes in Sunday's election, has failed to form a new government. The onus is now on Alexis Tsipras, the leader of the second-biggest party, the radical left Syriza. His party wants to wipe out the European Union austerity measures tied to the financial bailouts.

Expectations are that Tsipras won't reach any breakthroughs either, and that Greece will eventually be forced to hold another general election. Without a government to negotiate the next tranche of a bailout, the global markets face the growing risk of Greece defaulting on its debt and exiting the euro.

The next government must decide by next month if it will pay interest on $250 million of 4.5% notes expiring in 2016, and by next week if it will pay €436 million ($568 million) due on a floating-rate note issued 10 years ago.

No major U.S. economic news is scheduled for Tuesday.