Morning Market Update: December 15th, 2010

U.S. stock futures are trading lower Wednesday following Spain's warning that its credit rating may be downgraded, extending concerns over Europe's debt crisis.

Moody's Investor Services put Spain's Aa1 rating on review for possible downgrade due to its high refinancing needs, a potential rise in the debt burden and increased concerns over the ability of the government to get its public finances in order.

Economic reports due out include the Empire State manufacturing survey for December and consumer-price-inflation data for November at 8:30 AM ET. Data on industrial production for November will be released at 9:15 AM ET. At 10 AM ET, the NAHB housing-market index for December is due out.

In corporate news, Novartis AG (NYSE:NVS) said it will take full ownership of Alcon Inc. (NYSE:ACL) for $12.9 billion.

Yahoo (NASDAQ:YHOO) may be in the spotlight after the company said on Tuesday that it is laying off about 4% of its employees.

Dynegy (NYSE:DYN) said it will be acquired by Icahn Enterprises (NYSE:IEP) for $5.50 per share.

The Dow Jones Industrial Average (DJI) futures are trading 19.00 points below fair value, the S&P500 (INX) futures are trading 2.50 points below fair value, and the Nasdaq Composite (IXIC) futures are trading 3.00 points below fair value.

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