Updated from 6:43 a.m. EST
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
were down 14 points at 835 and were 14 points short of fair value.
futures were lower by 28 points and were 25 points 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
narrowed its earnings forecast but said it would maintain its dividend. Automakers
also presented business plans to Congress in hopes of garnering a federal bailout.
, 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, numerous companies announced changes in their business models and financial policies as the economic environment shifted. Among financial firms,
The Wall Street Journal
was thinking about starting an Internet banking business.
Bank of America
may reduce its headcount by 30,000 as it merges with
, according to a report by
Elsewhere, mining company
said it was suspending its dividend on declines in copper and molybdenum prices.
Research In Motion
cut its third-quarter revenue and earnings-per-share forecasts, saying a stronger dollar and weaker U.S. economy would hurt its results.
On the merger front,
Electricite de France
said it was planning to issue a bid of $4.5 billion for U.S. power company
As for economic data, November employment figures from Automatic Data Processing showed that 250,000 jobs had been lost that month, more than the 205,000 anticipated by economists. The October unemployment figure was revised to 179,000 from 157,000.
Revised third-quarter productivity numbers from the Department of Labor showed a 1.3% reading, above consensus estimates of 0.9% and up from 1.1% in the second quarter.
Also on the docket is a November non-manufacturing report from the Institute for Supply Management and the
so-called beige book of anecdotal economic reports.
Shifting to commodities, crude oil was falling 10 cents to $46.86 a barrel. Gold was losing $17 to $766.30 an ounce.
Longer-dated U.S. Treasury securities were falling in price. The 10-year note was down 16/32 to yield 2.73%, and the 30-year was losing 16/32 to yield 3.20%. 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.