October 10, 2012-Stocks Remain Guarded on Economic Concerns

Sentiment on Wall Street remains guarded, as economic worries continue to blanket markets. The U.S. index futures point to a lower opening on Wednesday. Most recently, the International Monetary Fund warned that European banks may be required to liquidate more assets if policy actions do not support. Meanwhile, Alcoa's (AA) earnings, though ahead of expectations, reflected the impact the economic slowdown is having on demand. Traders may also stay tuned to the Beige Book due to be released after the markets open and a few key earnings reports scheduled for the day. The Dow futures are declining 33 points and the S&P 500 futures are moving down 2.40 points, while the Nasdaq 100 futures are slipping 6.75 points. U.S. stocks declined sharply on Tuesday, as growth worries pre-occupied the minds of traders. The Dow Industrials fell 110.12 points or 0.81 percent before closing at 13,474 and the S&P 500 Index closed at 1,442, down 14.40 points or 0.99 percent. Meanwhile, the Nasdaq Composite ended 47.33 points or 1.52 percent lower at 3,065. On the economic front, the Federal Reserve is due to release its Beige Book, a compilation of anecdotal evidence on economic conditions from each of the 12 Federal Reserve districts, at 2 PM ET. The report is normally released about two weeks before the monetary policy meeting is held.