Futures Point to Weak Open on Wall Street
11/19/08 - 09:04 AM EST
Mike Taylor
Updated from 6:45 a.m. EST
Premarket futures were suggesting a lower open for U.S. stocks Wednesday, as the automakers attempted to secure their future by asking Congress for money, and several industrial heavyweights searched for answers in a troubled economic environment. Futures for the S&P 500 were down 18 points at 848 and were 9.7 points below fair value. Nasdaq futures were lower by 23 points at 1151 and were 5.5 points short of fair value. Last time out, the major averages suffered through a whipsaw session to close with gains, as strong earnings from tech bellwether Hewlett-Packard (HPQ Quote - Cramer on HPQ - Stock Picks) helped traders look past ongoing troubles for financial firms and automakers. Companies were still trying to adjust to the economic downturn and salve wounds inflicted by the faltering economy. After arriving hat in hand on Capitol Hill Tuesday to plead their case for access to federal funding, chief executives of woebegone automakers General Motors (GM Quote - Cramer on GM - Stock Picks), Ford (F Quote - Cramer on F - Stock Picks) and Chrysler will attempt again Wednesday to exchange a grilling by members of Congress for billions of dollars in government aid. The Big Three have been walloped lately by a combination of flagging sales, troubles in their finance divisions and high labor costs. The U.S. auto companies weren't the only ones coping with a tough market. Toyota (TM Quote - Cramer on TM - Stock Picks) said it will cut production in North American plants and lay off 250 of its temporary workers. Boeing (BA Quote - Cramer on BA - Stock Picks), which along with GM is a component of the Dow Jones Industrial Average, is resetting its production schedule as it attempts to recover from a strike by its machinists' union, according to a report by The Wall Street Journal.
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