BEFORE THE BELL:US Stock Futures Drop





U.S. stock futures dropped Wednesday before the release of inflation and manufacturing data, while euro-zone debt worries returned to the spotlight after a major ratings agency warned it may downgrade Spain's credit rating.

Gold and oil futures also declined, while the dollar advanced against its major rivals.

Futures on the Dow Jones Industrial Average slipped 28 points to 11393, S&P 500 futures fell 3.40 points to 1233.40 and Nasdaq 100 futures dropped 6.25 points to 2207.70.

On Tuesday, the blue-chip Dow index rose 0.4%, posting its highest closing value since September 2008.

Investors were awaiting a string of U.S. economic reports early Wednesday.

The Empire State manufacturing survey for December and consumer-price-inflation data for November are due at 8:30 a.m. Eastern time.

At 9:15 a.m. Eastern, data on industrial production for November will be released.

After the market opens, at 10 a.m. Eastern, the NAHB housing-market index for December is due.

In Europe, Spain led regional stock markets lower after Moody's Investors Service put Spain's Aa1 ratings on review for a possible downgrade. The agency said Spain is vulnerable to funding stress, given its high refinancing needs in 2011 and fragile market confidence.

Madrid's IBEX 35 stock index slumped 1.8% in intraday trading.

The euro pared earlier losses against the dollar to trade little changed at $1.3366.

The dollar index, which tracks the performance of the greenback against a basket of other major currencies, rose 0.2% to 79.539.

Commodity prices posted losses, with gold futures dropping $12.20 to $1,392.10 an ounce in electronic trading on Globex. Oil futures retreated 65 cents to $87.63 a barrel ahead of weekly data on U.S. inventories.

On the corporate front, U.S.-listed shares of Novartis AG (NVS) rallied 8.7% in premarket trading. The Swiss drug giant said Wednesday that it will take full ownership of eye-care specialist Alcon Inc. (ACL) for $12.9 billion. Previously, Novartis controlled about 77% of Alcon. After the merger is completed, Alcon will become the new eye-care division of Novartis.

Shares of Alcon rose 2.5% in premarket trade.

In the technology sector, shares of Yahoo Inc. (YHOO) may be active after the firm said late Tuesday that it's laying off 4% of its roughly 14,000 employees.

Shares of Joy Global Inc. (JOYG) advanced nearly 6% in premarket trading after the mining-equipment company reported quarterly profit that beat market expectations.

In deal news, Dynegy Inc. (DYN) said it will be acquired by Icahn Enterprises L.P. (IEP) for $5.50 a share in cash. Shares of Dynegy gained 3% in premarket trade.