US STOCKS-Futures drop on renewed European banking concerns

                                

                                
 * Futures fall on European bank reports
                                
 * Oracle hires Mark Hurd as president
                                
 * Futures off: Dow 41 pts, S&P 5.5 pts, Nasdaq 8 pts
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Adds bank stocks, updates prices)
                                
 By Chuck Mikolajczak
                                
 NEW YORK, Sept 7 (Reuters) - U.S. stock index futures fell
on Tuesday after reports on the European banking system
rekindled concerns about the financial health of the region.
                                
 The Wall Street Journal reported the European bank stress
tests to measure the strength of major banks understated some
lenders' holdings in potentially risky government debt.
                                
 Separately, Germany's banking association said the
country's 10 biggest banks may need 105 billion euros ($141
billion) in additional capital as it revamps regulations
designed to prevent future crises. For details, see
[ID:nLDE6850Q9]
                                
 Barclays Plc <BCS.N> U.S.-traded shares dropped 5.4 pct to
$19.18 premarket, and Deutsche Bank AG's <DB.N> ADRs were down
2.7 percent to $62.85 in premarket trading.
                                
 U.S. banks were lower, with Bank of America Corp <BAC.N>
shedding 1.4 percent to $13.31, and JP Morgan Chase & Co
<JPM.N> losing 1.2 percent to $38.70.
                                
 "The apparently never-ending European debt crisis is coming
back to visit the markets and with it, will bring a bout of
doubt," said Andre Bakhos, director of market analytics at Lek
Securities in New York.
                                
 "We were up three solid sessions to start the month of
September. We are looking now at a situation that may take some
recent enthusiasm away."
                                
 Wall Street posted its best week in the last two months,
bolstered by stronger-than-expected economic data that had
reduced fears of a double-dip recession.
                                
 S&P 500 futures <SPc1> lost 5.5 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> shed 41
points, and Nasdaq 100 futures <NDc1> fell 8 points.
                                
 Oracle Corp <ORCL.O>, the world's third-largest software
maker, said Monday it hired Mark Hurd, the former chief
executive of Hewlett-Packard Co <HPQ.N>, as president. Hurd
resigned in August after a probe into sexual harassment
allegations. Oracle shares climbed 5.6 percent to $24.21 in
premarket trade. [ID:nN06144965]
                                
 The U.S. Justice department is looking into Google Inc's
<GOOG.O> takeover of airline ticketing software firm ITA
Software Inc on concerns the deal would exert too much
influence on the online travel industry, the Wall Street
Journal reported. [ID:nSGE68604D]
                                
 Air Products and Chemicals Inc <APD.N> raised its bid for
Airgas Inc <ARG.N> to $5.5 billion, the latest salvo in a
hostile bid for its rival. [ID:nN06162722]
                                
 European shares fell 0.7 percent Tuesday to move below a
key index retracement level, with banks lower after a Journal
report on European bank stress tests. [ID:nLDE6860RA]
                                
 Asian stocks dropped on caution over the global economy,
with the Nikkei average down 0.8 percent. [ID:nSGE68602L]
  (Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)