Futures point to slightly higher open Wednesday ahead of the Fed Beige Book report in the afternoon. Shares around the globe are lower, following the losses seen in the U.S. on Tuesday. Concerns about banks in Europe has created selling and the Nikkei fell more than two percent after the yen hit a 15-year high against the dollar. Traders will also be dissecting President Obama’s new stimulus plan, which will be officially released today.

The biggest problem with the economy is the lack of jobs. The unemployment rate is extremely high at 9.6 percent and we aren’t seeing enough gains in payrolls to even keep up with population increases. President Obama is set to release his newest stimulus package, which would expand business tax cuts and provide $50 billion for infrastructure spending. However, these programs are long term plans and most economists agree they will do little to spur hiring in the near term.

The Fed Beige Book will provide traders a picture of the economy across the U.S. this report helps provide the FOMC with the information they need to make monetary policy decisions. Expectations are for the report to show that the economy is growing, albeit at a slower pace than previously expected. If the data paints a more dismal picture, it could lead to selling on the stock market.

In earnings news, women’s clothing retailer Talbot’s (TLB) reported mixed results, but the stock is taking a beating nonetheless. TLB beat earnings expectations by 9-cents a share, but fell short on revenues and lowered its Q3 guidance. TLB shares are down nearly 10 percent in pre-market trading at price near $10. In related news, the ICSC-Goldman report showed that same-store sales fell 0.4 percent week on week, rising 1.8 percent year on year. However, this is down from a gain of 2.8 percent in the previous week.

Shares of Vodafone (VOD) are slightly higher this morning after the telecom giant announced plans to sell its 3.2 percent stake in China Mobile (CHL). The deal is expected to bring in $6.6 for Vodafone. CHL shares fell four percent Tuesday, but are flat in pre-market trading at a price near $50.

Shares of BP (BP) are higher this morning after the company released the results of an internal investigation into the oil spill that killed 11 and created ecologic havoc in the Gulf of Mexico. BP took blame in the accident, but shared this with others involved, including Transocean (RIG) and Halliburton (HAL).

The Beige Book report is set for release at 2:00 PM ET and could have an impact on trading. However, it is unlikely that the data will move the major market indices out of their currently trading ranges.

Jody Osborne
Senior Writer & Options Strategist
Optionetics.com ~ Your Options Education Site