9:00AM U.S. stock futures dropped, reflecting plunge in Chinese market.

U.S. stock futures moved sharply lower on Wednesday, reflecting a plunge in Chinese stocks and cautiousness ahead of the Fed Reserve''s release of minutes from its latest meeting. The main Shanghai Composite Index dropped 6.5% after Beijing tripled a tax on stock trading. FOMC minutes are expected to indicate a rate cut by the end of the year rather than a rate hike.

In corporate news, International Business Machines (IBM: chart) said it repurchased $12.5 billion of common stock through accelerated share-buyback agreements. IBM said it bought 118.8 million, or 8%, of its shares for an initial price of $105.18 each, under its $15 billion buyback authorization. IBM also said it expects 2007 earnings per share to increase 13% to 14%, up from its previous estimate of 11%. The stock fell 0.5% in pre-market trading. Among other pre-market highlights, Pulte Homes (PHM: chart) said late Tuesday it will cut about 16% of its work force, or about 1,900 jobs.

Coca-Cola (KO: chart) was upgraded to buy from hold at Citigroup. The broker lifted its price target by $9 to $59. In deal news, technology accessory distributor CDW Corp. (CDWC: chart) agreed be bought by a private equity company for $7.3 billion. eSpeed Inc., a publicly owned electronic trading house, said it is buying BGC Partners in a $1.3 billion deal. Dow Jones industrial futures expiring in June fell 63, or 0.47%, to 13,495. Standard & Poor''s 500 index futures fell 7.70, or 0.51%, to 1,514.80. Nasdaq 100 index futures dropped 11.25, or 0.59%, to 1,895.25.


8:30AM Asian markets end lower Wednesday after China’s decision to triple duties on stock trades.

Asian markets finished lower Wednesday. The Shanghai Composite Index finished down 6.5% at 4,053.09. Premier Wen Jiabao cabinet ordered China''s Ministry of Finance early Wednesday to triple a trading transaction charge, called the stamp tax, to 0.3% from 0.1%. In response, Chinese stocks marked a broad-based decline in heavy trading. Investors fear that the current measures may to lead to a broad decline, as the measures may hurt the newly emergent middle-class in China. Foreigners are largely barred from trading in the country as the quota for foreign investment has only recently been raised to $30 billion from $ 10 billion. That leads to worries that a big setback in prices could hurt consumer spending and weaken economic growth.

Elsewhere in the region, Japanese Nikkei 225 Average closed 0.5% lower, losing 84.30 points to 17,631.56. Hong Kong Hang Seng Index pared sharper losses in early session to end 0.9% lower, losing 175.83 points to 20,253.17. South Korean Kospi Index advanced 0.1% to a record 1,662.72, Australian S&P/ASX 200 lost 1.2% to 6,243.4 and New Zealand NZX-50 shed 0.7% to 4,279.62. Taiwan Weighted Price Index retreated 0.4% and Singapore Straits Times Index recovered from sharp losses mid-session to end 0.5% lower. Thailand SET Index added 0.9%.


8:15AM CDW announced after the Bell Tuesday that it agreed to be bought by Madison Dearborn Partners for $7.3 B.

CDW (CDWC: chart) announced after the closing bell on Tuesday that it agreed to be acquired by private-equity firm Madison Dearborn Partners in a cash deal worth $7.3 billion. Under terms of the deal, Madison Dearborn will pay $87.75 a share for the technology products reseller. The transaction is 16.1% premium over CDW''s May 25 closing price of $75.56 a share. Morgan Stanley will represent CDW and will solicit other proposals during the next 30 days. Reports that CDW was in talks with Madison Dearborn sent CDW''s shares up 10% to their Tuesday close of $83.11. The stock traded up 3.35 in pre-opening hours.


7:30AM NY-6:30PM Mumbai Sensex ends lower on late-hour drop in IT stocks.

The Sensex on BSE finished Wednesday 96.83 points, or 0.67%, lower at 14,411.38.

The market-breadth was negative with three decliners for every two advancers. As there were 991 stocks which advanced, 1,594 stocks declined and 67 stocks remained unchanged. Of the 30 stocks in the Sensex, only seven advanced, while the rest declined. The turnover on BSE was Rs 4,737 crore, compared with Rs 4,605.18 crore on Tuesday. On NSE, the turnover was Rs 11,123.09 crore, much higher than Rs 9,340.58 crore on Tuesday.

Economic news

The oldest stock exchange in India has joined the ranks of eighteen stocks markets around the world with more than $1 trillion in valuations. After China and Russia, India has joined the ranks of trillion dollar market valuation on steady flow of new companies listed on the exchange, flow of more than $40 billion of foreign portfolio investing and sustained high economic growth never since 1947. Corporate earnings listed in BSE 500 Index have gained more than 30% annually for the last five years.

The rupee ended yesterday at its highest level in nine years on speculation that the size of capital inflows will offset the Reserve Bank of India’s efforts to curb the surge of the rupee.

India will buy only 300,000 tons of wheat, less than one million tons expected in the earlier tenders in the international markets. Higher than expected quoted wheat prices led government to revise the purchase to a lower level.

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