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 Morgan Stanley will release fourth-quarter results before the market opens, and analysts are anticipating a loss of 39 cents a share. The investment bank estimated in early November it would have to write down $3.7 billion due to losing bets on the subprime mortgages. A larger write-down, or comments that imply deteriorating conditions, could spur more investors to sell off already pummeled financial stocks.
Investors are also interested to see how much of the $20 billion the Fed offered in 28-day credit on Monday was taken by commercial banks. With Wall Street in such a somber mood these days, any result could be taken as a worrisome sign; investors could interpret strong interest on the part of commercial banks as desperation, or weak interest as a sign that the Fed's move was ineffective.
Dow Jones industrial futures fell 49, or 0.37 percent, to 13,279, while Standard & Poor's 500 index futures lost 5.00, or 0.34 percent, to 1,461.50. Nasdaq 100 futures dipped 1.75, or 0.09 percent, to 2,048.50.
On Tuesday, stocks finished higher on relief that the European Central Bank was willing to issue $500 billion in 16-day loans to banks, but it was a volatile session due to the prospect of a U.S. recession next year.
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 The dollar rose against other most major currencies, except the yen. Gold prices fell.
Light, sweet crude rose 12 cents to $90.20 a barrel in premarket trading on the New York Mercantile Exchange.
There is little in the way of economic data Wednesday, but Wall Street will be paying attention when Treasury Secretary Henry Paulson speaks in Los Angeles about trade, and when Richmond Fed President Jeffrey Lacker speaks in Charlotte on the outlook for the U.S. economy.
Overseas, Japan's Nikkei stock average fell 1.17 percent, and Hong Kong's Hang Seng index rose 1.11 percent. Britain's FTSE 100 dipped 0.14 percent, Germany's DAX index slid 0.34 percent and France's CAC-40 decreased 0.11 percent.
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On the Net:
New York Stock Exchange: http://www.nyse.com/
Nasdaq Stock Market: http://www.nasdaq.com/
[Associated Press; By MADLEN READ]
Copyright 2007 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
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