* Bleak economic reports fuel more financial worry
* Tiffany, Deere outlooks disappoint
* China rate cut, Toyota downgrade also weigh on sentiment
* For up-to-the-minute market news, please click on
STXNEWS/US
(Recasts first paragraph, updates prices)
By Ellis Mnyandu
NEW YORK, Nov 26 (Reuters) - U.S. stocks headed for a slide
at the open on Wednesday that would snap the Dow's three-day
rally as bleak outlooks from jeweler Tiffany & Co <TIF.N> and
manufacturer Deere & Co <DE.N> fanned recession fears.
A government report showing that new orders of durable
goods had a steeper-than-expected slide in October offered yet
more evidence that the downturn is deepening.
"Businesses have shut down, and the consumer has basically
frozen his wealth. Along with the credit market, we've seen an
economic implosion," said Steve Goldman, market strategist at
Weeden & Co in Greenwich, Connecticut. "We're forecasting a
very sharp decline in fourth-quarter gross domestic product."
S&P 500 futures <SPc1> fell 14 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 <DJc1> declined
115 points, and Nasdaq 100 <NDc1> shed 2 points.
Adding to nervousness, China announced its biggest interest
rate cut in 11 years to help cushion a faltering economy and
Toyota <7203.T> has had its top-notch credit ratings cut for
the first time in a decade. For details, see []
Analysts said as the market had rallied strongly on Friday
and on Monday, there remained a sense that news on the economy
was likely to turn gloomier, making it likely investors would
opt to take profits off the table, derailing a recovery bid
from 11-year lows.
China, a key destination for U.S. exports, slashed interest
rates on Wednesday for the fourth time since mid-September,
suggesting demand from China for the world's goods will slow.
[]
Fitch Ratings slashed Toyota's long-term foreign and local
debt ratings to AA from AAA, with a negative outlook, saying
the company needed to review its global investments, product
mix and speed of expansion. []
The news on Toyota comes just as investors fret about the
fate of U.S. automakers, including General Motors Corp <GM.N>,
whose executives warned of calamity if Washington did not
provide a $25 billion bailout.
Tiffany shares slid 11 percent to $18.55 before the bell
after the company forecast a tough selling climate ahead.
Deere, the world's biggest farm equipment maker, posted a
lower fourth-quarter net profit, hurt by faltering commercial
and consumer demand, and weakness in its financial services
arm. Looking ahead, it forecast a lower 2009 profit.
[]
Also trash hauler Waste Management <WMI.N> warned of
further deterioration in fourth-quarter results. Reports on
November consumer sentiment are due at 9: 55 a.m. (1455 GMT)
and October new home sales and 10 a.m. (1500 GMT).
(Additional reporting by Ryan Vlastelica; Editing by Kenneth
Barry)
