Futures Drop in Late Pre-Market Trading

FUTURES

As of 8:35 AM ET

INDEX	CHANGE	LAST	LOSS/GAIN
S&P 500	+0.18%	1,489.75	+2.75
NASDAQ 100	+0.38%	2,109.25	+8.00
DJIA	+0.16%	13,477	+21
10-Year Treasury	+0.017%	102-07+	-0-04+
Oil	-1.06%	$86.56	-$0.93
Gold	-1.28%	$793.40	-$10.30

U.S. MARKET PREVIEW

U.S. index futures fell in late pre-market trading Thursday morning following sharp gains Wednesday after stronger-than-expected economic reports and a more proactive role by President Bush in fighting the subprime crisis soothed nervous investors. Wednesday's ADP employment estimate saw November private payrolls up 189,000, sparking speculation Friday's non-farm payroll number may exceed economist estimates of 70,000 new jobs (full story). President Bush will most likely announce a plan Thursday to freeze all adjustable-rate mortgages [ARMs] for a five-year period (full story).

The Bank of England's [BoE] decision to cut its key rate by 25 bps was somewhat of a surprise to economists, the majority of whom were expecting the BoE to hold rates steady (full story). The European Central Bank [ECB] did not follow the BoE's lead, holding its key rate steady at 4% (full story). The yuan fell the most against the dollar since its peg to the dollar was lifted in July 2005 (full story).

Costco (COST) November same-store-sales [SSS] jumped 9%, beating estimates (full story). Wal-Mart (WMT) saw November comps rise 1.9%, topping consensus estimates for a 1.2% rise. Macy's (M) comps jumped 13.4%, vs. analyst expectations for an 8.2% rise, but the firm projected a December SSS decline of 4% to 7%. November Same-Store Sales Roundup: Mixed Bag

Homebuilder Toll Brothers (TOL) reported its first quarterly loss since going public in 1986, but still managed to top estimates (full story).

U.S. weekly initial jobless claims fell by 15,000, but the four-week average edged up slightly to 340,250.

RELATED LINKS

• Wall Street Breakfast
• European Markets Up Thursday Ahead of ECB, BoE Rate Decisions
• Asian Markets Thursday: Japan Jumps, China Falls on Yuan Concerns