US stocks head for lower open after rally

[November 26, 2008]  NEW YORK (AP) -- Wall Street appeared ready to take a break Wednesday, ahead of the Thanksgiving holiday, after a steep market rally. Stock futures pointed moderately lower as investors awaited reports on jobless claims and orders on big-ticket items.

A pullback is to be expected given the magnitude of the rally that began Friday, giving the Dow Jones industrial average and the Standard & Poor's 500 index their first triple-session advance in more than two months. Tuesday's buying was more selective than in the prior two sessions, but was seen as a welcome sign of stability after months of violent swings in the market.

A spate of reports are due Wednesday, including figures on personal spending, orders to factories for big-ticket durable goods, new home sales and weekly applications for unemployment benefits. Investors will be looking to the reports for further insight on the health of the economy.

Ahead of the figures, Dow Jones industrial average futures fell 66, or 0.78 percent, to 8,379. Standard & Poor's 500 index futures fell 10.90, or 1.28 percent, to 842.30, while Nasdaq 100 index futures fell 8.25, or 0.73 percent, to 1,127.25.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.01 percent from 3.10 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.12 percent from 0.09 percent late Tuesday.

The dollar was mixed against other major currencies, while gold prices fell.

Light, sweet crude rose 75 cents to $51.52 in premarket electronic trading on the New York Mercantile Exchange.

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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 TIM PARADIS]

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