* Obama to meet with CEOs from Goldman, Deloitte
* Costco to pay $7 special dividend on Dec 18
* Getco proposes $3.50 per share for Knight Capital merger
* EU approves Spain bank restructuring, opens door to aid
* Futures off: S&P 7 pts, Dow 39 pts, Nasdaq 8.75 pts
By Angela Moon
NEW YORK, Nov 28 Wall Street was set for a lower
open on Wednesday, putting the S&P 500 on course for a third
straight day of decline, as investors remained on edge given the
lack of details on U.S. budget talks.
The decline came despite encouraging corporate news,
including Costco's special dividend and a merger proposal for
Investors will get readings on new-home sales and the
Federal Reserve's Beige Book view of the economy later on
Wednesday, but the market is mainly focused on the negotiations
about long-term federal budget deficit reduction.
President Barack Obama has invited to the White House chief
executives from top corporations, including Goldman Sachs
, Deloitte LLP, and Caterpillar Inc, to discuss
U.S. fiscal problems.
Obama's meeting with influential leaders from the corporate
world is part of his push for Congress to extend tax cuts for
middle income Americans, one flashpoint in a standoff with
Republicans in Congress over a series of tax hikes and spending
cuts, dubbed the "fiscal cliff," that will go into effect next
year if lawmakers and the president cannot come up with a deal
to stop them.
"These CEOs know that the market will sell off without any
resolution, so I think it's encouraging that they are meeting
with the president," said Sal Arnuk, co-founder at Themis
Trading at Chatham, New Jersey.
One possible result of the deficit reduction talks is a rise
in the tax rate on dividends, prompting some firms to issue
special dividends or move up plans for dividends.
The latest example is retailer Costco Wholesale Corp
, which said it will pay a special $3 billion dividend
to investors. The company posted monthly same-store sales that
beat forecasts. The stock was up 3.4 percent at
$99.74 in premarket trade.
U.S. stocks slid on Tuesday after Senate Majority Leader
Harry Reid expressed disappointment that there has been "little
progress" in dealing with the fiscal cliff.
S&P 500 futures were down 7 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 fell 39
points and Nasdaq 100 futures were down 8.75 points.
Knight Capital Group Inc shares jumped nearly 20
percent to $3.52 in premarket trade on news that Getco LLC has
sent a proposal for a merger between Getco and Knight Capital at
a price of $3.50 per share, according to a regulatory filing.
Deep divisions at the Federal Reserve were on display on
Tuesday, just two weeks before the U.S. central bank's next
policy-setting meeting, with one top Fed official pushing for
more easing, and another advocating limits. The
Fed will release its Beige Book summary of regional economic
conditions at 2 p.m. (1900 GMT).
New home sales data is due at 10 a.m. (1500 GMT). Economists
in a Reuters survey forecast a reading of 390,000 for October
versus the previous reading of 389,000.
Microsoft Corp has sold 40 million Windows 8
licenses in the month since the launch, according to one of the
new co-heads of the Windows unit, setting a faster pace than
Windows 7 three years ago.
Green Mountain Coffee Roasters Inc forecast
quarterly and full year earnings well above analysts'
expectations, helped by an expanded lineup of single-serve
coffee makers and drinks, sending its shares up 22 percent in
Nokia said on Wednesday that an arbitrator has
ruled in its favor in a patent dispute with BlackBerry-maker
Research In Motion over use of Nokia's patents related
to wireless local access network technology.