Before the bell: Stocks to start lower following Alcoa cuts, ahead of jobs report

Posted Jan 7th 2009 7:45AM by Melly Alazraki
Filed under: Before the Bell, International Markets, Market Matters, Alcoa Inc (AA), Economic Data, Oil

U.S. stock market futures were lower Wednesday morning following metals giant Alcoa (NYSE: AA) announcement from late Tuesday it would be cutting production and jobs. Meanwhile, after warning that the nation could face trillion-dollar deficits for years to come, Obama vowed long-term fiscal discipline along with his massive $775 billion stimulus plan.

Overseas, Asian markets were mixed, but European stock markets fell Wednesday as the hopes of recovery in 2009 is still that, a hope. Meanwhile, Russia has shut off all its gas supplies to Europe through Ukraine and has reduced or halted fuel deliveries to a dozen countries during a winter cold snap. Oil prices dipped to near $48 a barrel Wednesday as the continued geopolitical tensions affecting oil prices were weighed against likely slower demand.

On the economic front, ADP is set to release its December private sector payroll estimate, two days ahead of the government jobs report. Around 10:30 am, weekly energy inventories data is due as well.

Tags: aa