U.S. Pre-Market Up as Rate-Cut Pressure Mounts

Futures

As of 8:25 AM ET

INDEX	CHANGE	LAST	LOSS/GAIN
S&P 500	+0.56%	1,471.50	+8.25
NASDAQ 100	+0.70%	2,076.75	+14.50
DJIA	+0.57%	13,338	+76
10-Year Treasury	+0.033%	102-20¼	-0-08¾
Oil	+1.36%	$89.54	+$1.22
Gold	-0.44%	$804.1	-$3.50

U.S. Market Preview

(compiled by SA Editor Jonathan Liss)

U.S. futures are trading significantly higher as of 7:30 AM following market losses Monday and Tuesday, as pressure mounts for the Fed to cut interest rates again when it meets next Tuesday. According to Fed-watcher Greg Ip, the Fed is "likely to deliver [its] third 'insurance' interest-rate cut this year" on December 11. Wall Street is currently betting on a 0.50% cut.

OPEC said it won't boost crude output, sending futures up 1.36% in Wednesday morning trading (full story). New York State prosecutors subpoenaed a number of Wall Street investment firms in order to better understand their role in the packaging, selling and evaluating of high-risk mortgages (full story).

Fannie Mae (FNM) fell nearly 2% in pre-market action after announcing a plan to raise $7 billion through preferred stock sales while cutting its dividend by 30% in an attempt to bolster its balance sheet (full story). Shares of cable provider Comcast (CMCSA) were down 8.7% in pre-market action following the company's lowering of its cable revenue growth and other full-year 2007 forecasts Tuesday (full story).

Wall Street gets a healthy serving of economic data Wednesday, beginning with a revision of Q3 non-farm productivity numbers at 8:30 AM, October factory orders and November's ISM Services report at 10:00 AM, and crude inventories at 10:30 AM. Factory orders are expected to be flat, while the expected ISM Services reading is 55, indicating slight growth. There are no significant corporate earnings reports before the bell Wednesday.

Related Links

• Wall Street Breakfast
• European Markets Post Solid Gains Early Wednesday
• Asian Markets Up Sharply Wednesday