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Wall Street Stocks Set for Downside Opening

Mike Taylor

Premarket futures were suggesting a downside open for stocks in New York Wednesday, as traders eyed the prospect of a bailout for the automakers and prepped for an array of economic reports.

Futures for the S&P 500 were down 13 points at 835 and were 12 short of fair value. Nasdaq futures were lower by 20 and were 16 below fair value.

During Tuesday's trading session, the major averages finished with gains in a rebound from a broad selloff on Monday. Tuesday's gains were bolstered somewhat when General Electric (GE Quote) narrowed its earnings forecast but said it would maintain its dividend. Automakers Ford (F Quote) and General Motors (GM Quote) also presented business plans to Congress in hopes of garnering a federal bailout.

Toyota (TM Quote), meanwhile, announced it would cut production in December and reduce managers' winter bonuses as it copes with the economic downturn.

Ahead of Wednesday's trading, the Wall Street Journal reported that Goldman Sachs (GS Quote) was thinking about starting an Internet banking business.

As for economic data, November employment figures from Automatic Data Processing and revised third-quarter productivity numbers from the Department of Labor are due for release. Also on the docket is a November non-manufacturing report from the Institute for Supply Management and the Fed's so-called beige book of anecdotal economic reports.

Shifting to commodities, oil was rising 35 cents to $47.31 a barrel. Gold was losing $7.40 to $775.90 an ounce.

Longer-dated U.S. Treasury securities were falling in price. The 10-year note was down 22/32 to yield 2.75%, and the 30-year was losing 1-5/32 to yield 3.23%. The dollar was rising vs. the euro and pound but falling against the yen.

European exchanges, including the FTSE in London and the DAX in Frankfurt, were trading lower. Asian markets, such as Japan's Nikkei and Hong Kong's Hang Seng, finished on the upside.