Before the bell: Stock futures lower ahead of data, following bank downgrades

U.S. stocks futures are indicating another day of losses ahead of consumer confidence data and the release of the last FOMC meeting minutes. Several bank downgrades could be affecting the Street as well as data regarding credit-card defaults. Together with yesterday's lower-than-expected housing data, investors may feel more concerned about the subprime meltdown and the credit crunch rippling effects.

Yesterday, stocks finished lower following a report on existing home sames that recorded its fifth monthly decline in a row with housing prices falling a record 12th consecutive month. The Dow industrials dropping 56 points, or 0.4%, the S&P 500 down 12 points (0.6%) and the Nasdaq Composite losing 15 points (0.85%).

More housing data will be released today. At 9:00 a.m., before the opening bell, the June S&P/Case-Shiller Home Price index is due and prices are expected to show a decline.

At 10:00 a.m. the Conference Board will report the August consumer confidence index. Economists (surveyed by Brieifing.com) are expecting the index to decline sharply, from 112.6 in July to 104.5. The Street will likely focus on the outcome of this report and the session affected accordingly.

Finally, at 2:00 p.m. EDT, the minutes from the Federal Reserve's meeting on Aug. 7 are due out. While this is usually closely watched, events since have changed its significance as many now expect a rate cut in the next Fed meeting. The deep slump in housing, subprime meltdown, credit crunch, turmoil in financial markets, all raised concerns about a possible recession and many believe a rate cut would help stabilize the economy.

Overseas, stocks in Europe and Asia declined, led by financial companies.

Merril Lynch indeed downgraded financial firms. Citigroup Inc. (NYSE: C), Lehman Brothers Holdings (NYSE: LEH) and Bear Stearns Cos. (NYSE: BSC) were downgraded to Neutral from Buy. BSC is trading down 1.9% in premarket trading (7:29 a.m.), C down 1.67% (7:20 a.m.) and LEH down 3% (7:24 a.m.).

State Street (NYSE: STT) has exposure to $22 billion of asset-backed commercial paper conduits, the types of vehicles that have caused problems at European banks, according to a report in The Times of London newspaper.