November 21, 2012-Stocks Look to Slightly Higher Open

The major U.S. index futures are pointing to a slightly higher opening on Wednesday, with sentiment evenly poised despite the release of a report showing a decline in jobless claims in line with expectations. Risk appetite has not perked up, as too many uncertainties linger. The eurozone debt crisis that is threatening more damage to global growth is likely to be exemplified by the indecision in disbursing additional financing to Greece. Meanwhile, domestically, despite the willingness shown by the lawmakers, the fiscal cliff is posing a grave threat. At this juncture and against the backdrop of a softening global economy, the markets are unlikely to see a sustainable uptrend. U.S. stocks scrambled to a mixed close on Tuesday, as profit taking took some sheen out of the previous session’s solid advance. The lukewarm showing came as traders digested mixed catalysts, including weak corporate results, better than expected housing data and a warning from Federal Reserve Chairman Ben Bernanke that the central bank may not be able to offset the full impact of the fiscal cliff.