Updated from 7:00 a.m. EDTPremarket futures were intimating a lower open for U.S. stocks Wednesday, ahead of a Senate vote on the Bush administration's rescue package for the financial system. Futures for the S&P 500 were down 12 points at 1158 and were 11 below fair value. Nasdaq futures were lower by 21 points at 1584 and were 10 short of fair value. During Tuesday's session, stocks posted large gains, partially recovering from a sharp selloff Monday. Ahead of Wednesday's trading, investors were still waiting for news on a $700 billion financial-sector bailout proposal rejected by the House of Representatives on Monday. The revised bill before the Senate included a temporary increase in government insurance on bank deposits to $250,000 from $100,000. The bill also extends existing tax breaks for individuals and businesses for two years. According to reports by The Wall Street Journal and Reuters, former AIG ( AIG) CEO Maurice Greenberg requested the opportunity to bid on the insurance company's assets. AIG, which has taken out an emergency bridge loan from the government as it struggles to raise capital levels, was reportedly contemplating the sale of various assets to stave off a government takeover. Elsewhere, Bloomberg reported that Swiss bank UBS ( UBS) may be cutting as many as 1,900 investment banking, equities and fixed-income jobs. UBS announced earlier this year that it would split its business after incurring large subprime-related writedowns. Meanwhile, mining concern BHP Billiton ( BHP) gained approval from the Australian government to buy Rio Tinto ( RTP). In analyst actions, Exxon Mobil ( XOM) caught a Barclays Capital upgrade to overweight from equal weight. Barclays said that the company's market value per barrel of oil has fallen despite an increase in oil prices.
As for economic data, Automatic Data Processing's September private nonfarm employment figures showed a loss of 8,000 jobs, far better than economists' estimates for a decline of 50,000. ADP revised its August lost-jobs count to 37,000 from a previous read of 33,000. Also on the economic docket, the Commerce Department's will report on August construction spending. The Institute for Supply Management also is expected to roll out its manufacturing index for September. Longer-term U.S. Treasuries were rising in price. The 10-year note was up 15/32 to yield 3.77%, and the 30-year was gaining 28/32, to yield 4.26%. The dollar was weakening vs. its major foreign competitors. Over in commodities, crude oil was losing $1.33 to $99.31. The Energy Information Administration is set to release its oil inventory numbers for the week ended Sept. 27. Gold was gaining $1.40 to $882.20. In Europe, exchanges were mixed. London's FTSE was edging higher, while Frankfurt's DAX was trading downward. The Nikkei in Japan closed with gains. Markets in Hong Kong, China and Singapore were closed for a holiday.