Sour Earnings Outlooks Point Futures Lower

Premarket futures were hinting at a lower open for U.S. stocks Thursday, as corporate news from the retail, auto and technology sectors suggested continuing economic struggles.

Futures for the S&P 500 were down 5.5 points at 848 and were 2.7 below fair value. Nasdaq futures were down 18 points at 1146 and were 20 short of fair value.

On Wednesday, stocks got pummeled as Treasury Secretary Henry Paulson offered modifications on how the government would spend the remaining money in the $700 billion Troubled Asset Relief Program.

Ahead of the new session, corporate headlines were adding to the selling mood. Retail giant Wal-Mart (WMT Quote) reported a rise in third-quarter profit, but lowered its earnings guidance for fiscal 2009.

As for the automotive sector, Bloomberg reported that staggering automaker General Motors (GM Quote) was hitting a snag in its efforts to sell $4 billion in assets to raise its cash levels. Several lawmakers have begun discussing whether GM, along with Ford (F Quote) and Chrysler, needs a government bailout.

In the technology arena, chipmaker Intel (INTC Quote) cut its fourth-quarter revenue forecast on weakening demand.

Elsewhere among chipmakers, Applied Materials (AMAT Quote) announced a sharp decline in its fiscal fourth-quarter earnings and said it would eliminate 1,800 jobs next year.

German industrial conglomerate Siemens (SI Quote), meanwhile, announced a quarterly loss on charges related to job cuts and money dedicated to costs stemming from a bribery investigation.

Looking at economic data, the Department of Labor's jobless claims figures for the week ended Nov. 8 are due for release. The Census Bureau also is expected to roll out its trade balance report for September.