With traders once again focusing on developments in Europe, stocks are likely to come under pressure in early trading on Wednesday. The major index futures are currently pointing to a sharply lower open for the markets, with the Dow futures down by 95 points.
The downward momentum for the markets comes as traders are expressing caution ahead of a meeting of European leaders in Brussels.
The European Union summit is expected to focus on ways to boost the struggling European economy as well as the ongoing uncertainty about Greece following the debt-plagued nation's failure to form a government.
Noting yesterday's reaction to remarks by former Greek Prime Minister Lucas Papademos, Peter Boockvar, managing director at Miller Tabak, said, "The markets are on edge and sensitive to every possible out of control scenario coming out of Europe."
Trading could also be impacted by the release of the Commerce Department's monthly report on U.S. new home sales. Economists expect new home sales to rise to an annual rate of 335,000 in April from 328,000 in March.
In corporate news, shares of Dell (DELL) are likely to move sharply lower at the open after the PC giant reported weaker than expected first quarter results and provided disappointing second quarter revenue guidance. Dell is down by 13.9 percent in pre-market trading.
by RTT Staff Writer
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