* Stock index futures point to lower market open
* Economic outlook in focus after Fed rate cut
* Morgan Stanley posts wider-than-expected loss
* For up-to-the-minute market news, please click on
[]
(Updates with Morgan Stanley shares falling, General Mills
results, updates prices)
By Leah Schnurr
NEW YORK, Dec 17 (Reuters) - U.S. stocks were poised for a
lower open on Wednesday as initial enthusiasm over the Federal
Reserve's interest rate cut faded and investors focused on weak
financial results and the dismal economic outlook.
Morgan Stanley <MS.N> shares tumbled more than 6 percent in
premarket trading after reporting a worse-than-expected
quarterly loss as the credit crisis inflicted more writedowns.
For details, see [].
On Tuesday, the Fed rewrote its policy playbook by slashing
borrowing costs to a record low, even zero, and pledging more
unconventional steps to fight the deepest recession in
generations, causing stocks to jump.
"There's a good feeling from the Fed statement, but this is
going to take a long time to work itself out, so I'm not
expecting any long-term miracles," said Paul Mendelsohn, chief
investment strategist at Windham Financial Services in
Charlotte, Vermont.
"Nothing has changed from yesterday to today in terms of
where we are in this economic disaster that's taking place
here." The United States fell into recession a year ago, and
the economies in Japan and the European Union are also
contracting, among others.
S&P 500 futures <SPc2> fell 10.60 points and were below
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc2> were down
115 points, and Nasdaq 100 <NDc2> futures gave up 13.75
points.
Apple Inc <AAPL.O> said that Chief Executive Steve Jobs
will not deliver the keynote address at the Macworld trade show
next month, reviving concern about his health and sending the
company's shares down more than 4 percent in trading before the
bell. []
Food company General Mills Inc <GIS.N> reported
higher-than-expected profit and raised its full-year profit
forecast. General Mills and other food companies have benefited
from consumers trying to save money by eating at home more.
[]. General Mill's shares were up 3.8 percent at
$63.56 in premarket trading.
OPEC oil ministers were meeting to remove a record 2
million barrels per day from oil markets in an attempt to
balance supply with falling global demand for fuel.
[].
In the autos sector, Japan's Honda Motor Co <7267.T> gave
its third profit warning this year, cutting its operating
forecast by two-thirds as the global recession hits car sales.
[].
The industry has been on investors' minds as the fate of an
aid package from Washington for U.S. carmakers remains
uncertain.
Tuesday's rally pushed the benchmark Standard & Poor's 500
index to its highest closing level since Nov. 10 and drove each
of the major U.S. stock indexes to their best one-day
performance for the month. However, so far this year the S&P is
down about 38 percent.
(Editing by Kenneth Barry)
