By Chuck Mikolajczak
NEW YORK (Reuters) - Stock index futures fell on Tuesday, putting the S&P 500 on track for a third straight decline, on renewed fears the euro zone's sovereign debt crisis was worsening, and tracking a slump in European stocks.
* European shares fell for a third straight session early Tuesday, led by euro zone banks as rising debt yields and an increasingly fractious political backdrop to the region's debt crisis continued to spook investors.
* European stocks <.FTEU3> fell 4 percent on Monday, with financial shares falling to their lowest in more than two years. U.S. markets were closed for the Labor Day holiday on Monday.
* Swiss shares bucked the trend, boosted after Switzerland's central bank intervened to drive down the value of the franc, buoying exporter shares such as Transocean Ltd
* S&P 500 futures lost 22.6 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 fell 173 points, and Nasdaq 100 futures dropped 21.75 points.
* Investors awaited the Institute for Supply Management's August non-manufacturing index at 10:00 a.m. EDT for insight into the pace of economic recovery. Data on Friday showed zero net U.S. employment growth and stoked recession concerns.
* Big U.S. banks, in talks with state prosecutors on settling claims of improper mortgage practices, have been offered a deal that could limit legal liability in return for a multibillion-dollar payment, the Financial Times reported.
* Bank of America Corp
* Sunoco Inc
* Dell Inc
* Asian shares fell on Tuesday on fears that Europe's sovereign debt troubles could trigger a second full-blown banking crisis.
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)
