Economic anxiety

[notiCIas]

Economic anxiety

Forecasts of a strong GDP report raise concerns about higher interest rates, hitting stock futures.

November 30, 2005: 6:21 AM EST

NEW YORK (CNNMoney.com) - Stocks could trip over good news early Wednesday, as investors worry that more strong economic readings expected before the market open could again raise concerns of higher interest rates.

U.S. stock futures were down, indicating a lower opening for stocks, ahead of the 8:30 a.m. ET revision of the third quarter gross domestic product. Economists surveyed by Briefing.com forecast that the annual growth rate in the quarter will be raised to 4 percent, up from the initial reading of a 3.8 percent gain.

At 2 p.m. ET, the Federal Reserve could give further clues on its interest rate plans when it releases its so-called Beige Book. The Chicago PMI report could also give an early look at manufacturing strength in the Midwest, with economists forecasting slightly slower pace of growth.

Stocks are coming off a narrow decline Tuesday when stronger-than-expected readings on new home sales, durable goods orders and consumer confidence added to concerns about the Fed staying with its course of interest rate hikes into the new year. Treasuries also sold off on the news.

Oil prices were lower again early Wednesday ahead of the weekly U.S. fuel inventory report, due at 10:30 a.m. ET. The January light crude futures contract for NYMEX lost 29 cents to $56.17 a barrel in electronic trading, while the January contract for Brent crude lost 55 cents to $53.77.

Major markets in Asia closed mixed Wednesday, as Japan's Nikkei hit the 15,000 mark for the first time in five years before ending slightly lower. Major European markets were lower in early trading.

Treasury prices rebounded from Tuesday's sell-off, cutting the yield on the 10-year treasury to 4.40 percent from 4.48 percent late Tuesday. The dollar lost ground against the euro and the yen.