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Stock Futures Slip as Traders Look to Take Profits

Mike Taylor

Premarket futures were predicting a lower open for stocks in the U.S. Wednesday, as traders looked to take profits after a three-day rally in the blue-chip indices and geared up for a day chock full of economic-data releases.

Futures for the S&P 500 were down 11 points at 843 and were 14 short of fair value. Nasdaq futures were lower by 8.3 at 1127 and were 16 below fair value.

On Tuesday, stocks fluctuated following the Federal Reserve's announcement of an $800 billion program to bolster mortgage- and consumer-lending markets. The blue-chip indices finished with gains, while the Nasdaq ended lower.

The schedule Wednesday is heavily loaded with economic reports. The Census Bureau's durable-goods orders for October are due for release, as are the Department of Labor's weekly initial claims for the week ended Nov. 22.

The Commerce Department also is slated to roll out its personal income and spending figures for October. Also on the docket is a November manufacturing index reading from the Chicago Purchasing Managers Association, a consumer-sentiment survey from the University of Michigan and the Commerce Department's new-home sales data.

Outside of domestic indicators, China's central bank announced it cut its benchmark interest rate by 1.08%, a move that reflects increasing concern that one of the world's fastest-growing economies has slowed considerably.

As for the day's corporate earnings, industrial firm Deere (DE Quote) is expected to report earnings before the market opens.

In other company news, Fitch Ratings cut its debt rating on Toyota (TM Quote), putting a negative outlook on the company. Both domestic and foreign automakers have had a rough go of it thanks to flagging demand.

Among financial firms, Goldman Sachs (GS Quote) ended discussions with Panasonic (PC Quote) about a potential sale of Goldman's stake in Sanyo. Goldman cited concerns about the price and deal structure as it walked away.

In the commodities space, crude oil was rising $1.05 to $51.82 a barrel. Gold was slipping $3 to $813.50.

Longer-dated U.S. Treasury securities were rising in price. The 10-year was adding 28/32 to yield 3.01%, and the 30-year was up 1-18/32, yielding 3.54%. The dollar was higher vs. the euro and pound but softening against the yen.

Globally speaking, European exchanges such as the FTSE in London and the DAX in Frankfurt were trading lower. In Asia, Japan's Nikkei closed with losses, and Hong Kong's Hang Seng ended with gains.