The major indices remain on track for a downward start to the session, according to stock futures (S&P futures -6.90, Nasdaq futures -19.00).
Analysts at Morgan Stanley slashed their earnings estimate for Goldman Sachs. Persistent uncertainty in financial markets and a clouded economic outlook have resulted in lower earnings expectations for many firms, and has also led to mounting job cuts on Wall Street. Recent reports indicate Goldman Sachs has informed some 3,200 employees, or 10% of its workforce, they will lose their jobs. Meanwhile, Citigroup has begun notifying some of the 9,100 employees, or 2.6% of its workforce, whose jobs will be eliminated. The announcements coincide with continued government reports indicating a relatively weak labor market. Jobless claims for the week ending November 1 totaled 481,000, marking a 4,000 decrease from the prior week's upwardly revised claims number. The latest figures exceeded the 477,000 claims that were widely expected.
Cisco and Spectra Energy posted better-than-expected earnings per share results for the latest quarter. Williams Companies missed the consensus EPS estimate. Media giant Newscorp also reported earnings per share results that were below expectations, but had its shares downgraded to Neutral from Overweight by analysts at JPMorgan.
Wal-Mart continues to attract bargain hunters; the discount retail giant reported October same-store sales growth of 2.4%. It expects November same-store sales to grow between 1% and 3%.