11/21/2007 8:57:02 AM After ending the previous session higher, stocks are likely to pullback sharply in early trading on Wednesday, with the major U.S. index futures indicating a significantly lower open for the markets. Nonetheless, trading activity is likely to be somewhat subdued ahead of the Thanksgiving Day holiday. The downward momentum for the markets is partly due to significant weakness in the overseas markets, which comes amid some concerns about the outlook for the U.S. economy and the potential global impact of a recession in the U.S. Asian stocks saw substantial weakness after turning in a mixed performance in the previous session, with Japan's Nikkei 225 Index closing down 2.5 percent. With the loss, the index fell to its lowest closing level since July of 2006. The European markets have also come under pressure after seeing some strength on Tuesday, as traders worry about weakness in the U.S. economy and the increasing value of the Euro. The U.K.'s FTSE 100 Index is currently down 1.5 percent. Some selling pressure has also been generated by a continued increase by the price of oil, which is once again climbing near the $100 a barrel level. In early trading, crude for January delivery is currently up $0.58 at $98.61 a barrel. On the economic front, the Labor Department released its report on initial jobless claims in the week ended November 17, showing that jobless claims fell to 330,000 from the previous week's revised figure of 341,000. After the start of trading, the Conference Board is due to release its report on leading economic indicators in the month of October, while reports on November consumer sentiment and weekly oil inventories are also due to be released. Among individual stocks, shares of Limited Brands (LTD) are likely to come under pressure after the apparel retailer reported third quarter earnings that fell year-over-year. The company also lowered its fourth quarter same-store sales outlook and forecast weaker than expected earnings for the quarter. Gymboree (GYMB) could also see some early weakness after the children's apparel retailer forecast fourth quarter and full year earnings below analyst estimates. The company also reported third quarter sales that came in below expectations. On the other hand, shares of MeadWestvaco (MWV) could move to the upside after the packaging manufacturer said that it has entered into an agreement to repurchase $400 million of its common stock from Goldman Sachs (GS).

11/21/2007 8:57:02 AM After ending the previous session higher, stocks are likely to pullback sharply in early trading on Wednesday, with the major U.S. index futures indicating a significantly lower open for the markets. Nonetheless, trading activity is likely to be somewhat subdued ahead of the Thanksgiving Day holiday. The downward momentum for the markets is partly due to significant weakness in the overseas markets, which comes amid some concerns about the outlook for the U.S. economy and the potential global impact of a recession in the U.S. Asian stocks saw substantial weakness after turning in a mixed performance in the previous session, with Japan's Nikkei 225 Index closing down 2.5 percent. With the loss, the index fell to its lowest closing level since July of 2006. The European markets have also come under pressure after seeing some strength on Tuesday, as traders worry about weakness in the U.S. economy and the increasing value of the Euro. The U.K.'s FTSE 100 Index is currently down 1.5 percent. Some selling pressure has also been generated by a continued increase by the price of oil, which is once again climbing near the $100 a barrel level. In early trading, crude for January delivery is currently up $0.58 at $98.61 a barrel. On the economic front, the Labor Department released its report on initial jobless claims in the week ended November 17, showing that jobless claims fell to 330,000 from the previous week's revised figure of 341,000. After the start of trading, the Conference Board is due to release its report on leading economic indicators in the month of October, while reports on November consumer sentiment and weekly oil inventories are also due to be released. Among individual stocks, shares of Limited Brands (LTD) are likely to come under pressure after the apparel retailer reported third quarter earnings that fell year-over-year. The company also lowered its fourth quarter same-store sales outlook and forecast weaker than expected earnings for the quarter. Gymboree (GYMB) could also see some early weakness after the children's apparel retailer forecast fourth quarter and full year earnings below analyst estimates. The company also reported third quarter sales that came in below expectations. On the other hand, shares of MeadWestvaco (MWV) could move to the upside after the packaging manufacturer said that it has entered into an agreement to repurchase $400 million of its common stock from Goldman Sachs (GS).
Stocks Fall Sharply At The Start Of Trading - U.S. Commentary []