Wall Street Seen Lower on Alcoa Layoffs

By Madlen Read

NEW YORK -- Wall Street headed for a lower open Wednesday, sobered by aluminum producer Alcoa's(AA Quote) decision to slash jobs and production to navigate through the global downturn.

The announcement was a harsh reminder that the economy both domestically and abroad remains in rough shape. Alcoa said late Tuesday it is reducing its global work force by about 13,500, or 13%, by the end of the year and lowering total output by more than 18% annually.

The market's economic worries had been calmed a bit in recent days by President-elect Barack Obama's proposal to slash taxes and help businesses. The stimulus package could cost as much as $775 billion, though, and Obama said Tuesday the nation could face trillion-dollar deficits "for years to come." ...