RTRS: US STOCKS-Futures lower as economic worries weigh
By Leah Schnurr
NEW YORK, Nov 5 (Reuters) - Wall Street looked set for a lower open on Wednesday the day after Barack Obama won the presidency as investors turned their focus back to concerns on the weakening global economy.
Obama, who swept a historic White House victory, now faces the task of trying to lead the world out of its worst financial crisis since the 1930s.
Among economic data, data showed U.S. employers cut a larger-than-expected number of jobs in October, while the Institute for Supply Management services index later in the day is expected to show a contraction in the services sector in September.
Also on the economic horizon, investors were looking ahead to Friday's non-farm payrolls for last month.
"As we look at what's happened over the last four days, we've had a pretty positive tone to this market so we've gotten to the point where it's going to take a new catalyst to get us going," said Art Hogan, chief market analyst, Jefferies & Co in Boston.
"We also have to bear in mind that the president-elect has a major job in front of him - more than any other president-elect in recent history."
S&P 500 futures SPc1 fell 14.60 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 fell 97 points, and Nasdaq 100 NDc1 futures were down 18.50 points.
Highlighting the economic uncertainty, ArcelorMittal (MTP.PA: Quote, Profile, Research, Stock Buzz), the world's largest steelmaker, forecast a weaker fourth quarter, slashed output and froze growth plans.
Shares of Ambac Financial Group (ABK.N: Quote, Profile, Research, Stock Buzz) tumbled 23.5 percent to $2.60 in premarket action after the bond insurer reported a much bigger quarter loss as it was hurt by writedowns and market losses. [ID:nN05529522].
Finance company GMAC LLC, which is 49 percent owned by General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz), reported its fifth straight quarterly loss and said its mortgage unit may not survive. [ID:nN05548526].
Providing some optimism that measures to shore up tight credit markets are taking hold, the interest rate banks charge each other for short term loans fell again on Wednesday.
While credit markets have shown signs of thawing in recent weeks, worries remain about the potential depth and length of an economic slowdown that has yet to be fully played out.
Also among quarterly results, Time Warner Inc (TWX.N: Quote, Profile, Research, Stock Buzz) reported higher-than-expected profit but it lowered its full-year operating profit outlook. [ID:nN04488519].
European stocks also retreated as economic concerns reemerged to take the spotlight, offsetting Asia's early rally.
On Tuesday stocks logged their biggest Election Day rally ever as investors looked forward to the end of the long fight for the White House, and as energy companies' shares followed oil prices higher.
