Stocks on Wall Street Appear Headed for Early Decline

Software firm Adobe Systems (ADBE Quote) reported preliminary fourth-quarter results that were ahead of expectations, but also announced plans for an 8% reduction in headcount.

In the pharmaceutical space, Merck (MRK Quote) reaffirmed its 2008 earnings projections but projected 2009 results would fall short of analysts' current estimates.

Homebuilder Toll Brothers (TOL Quote) said its fourth-quarter loss narrowed year over year and said its revenue in the coming year would fall substantially from current levels.

In one bright spot, retail giant Wal-Mart (WMT Quote) announced its same-store sales rose 3.4% in November.

Turning to economic data, the Labor Department said jobless claims for the week ended Nov. 29 fell 21,000 509,000. The result was better than economists' forecast of 540,000 claims for the week. Separately, the Census Bureau's October read on factory orders also is on the schedule.

As the financial crisis was felt overseas, the Bank of England cut its key interest rate by one percentage point to 2%, and the European Central Bank reduced its rate to 2.5% from 3.25%.

Looking at commodities, crude oil was down $1.09 to $46.65 a barrel. Gold was falling $5.40 to $765.10 an ounce.

Longer-dated U.S. Treasury securities were rising in price. The 10-year note was up 4/32, yielding 2.64%. The 30-year was adding 18/32 to yield 3.14%. The dollar was climbing vs. the euro and pound but softening against the yen.

Abroad, European exchanges, including the FTSE in London and the DAX in Frankfurt, were trading lower. In Asia, Japan's Nikkei and Hong Kong's Hang Seng finished on the downside.