Stocks set for lower start
Investors back off from previous session's surge. GM bondholders reject offer; existing home sales due out.
NEW YORK (CNNMoney.com) -- U.S. stocks appeared set for a lower start Wednesday, as GM confirmed that bondholders rejected the automaker's offer to swap $27 billion in debt for equity.
At 8:40 a.m. ET, Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were slightly lower.
Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.
Futures lost their earlier gains, which Art Hogan, chief market strategist at Jefferies & Co., had attributed to oil prices' six-month highs. He referred to oil prices as "a barometer for global demand and global growth."
Stocks could still get a boost after the bell, said Hogan, referring to expectations for a slight month-to-month increase in existing home sales.
U.S. stocks surged Tuesday, lifted by an upbeat reading on consumer confidence. The Dow climbed 2.4%, the S&P 500 added 2.6% and the Nasdaq surged 3.5%.
General Motors: GM (GM, Fortune 500) confirmed reports that bondholders rejected an offer from the company to trade $27 billion of debt for equity stakes. This all but ensures that the automaker will move into bankruptcy.
Economy: On Wednesday, a report on April existing home sales is due out at 10 a.m. ET. In total, 4.66 million existing home sales are expected for April, according to a consensus forecast from Briefing.com. That would be an increase from 4.57 million in March.
A report issued Tuesday showed that the drop in home prices deepened during the first three months of the year.
A survey released Wednesday showed that business economists expect the recession to end this year. Almost three out of four survey respondents expect the recession will end by the third quarter of 2009, the report said.
Companies: Office supplies retailer Staples (SPLS, Fortune 500) reported a one-third drop in quarterly profit to $147 million, or 20 cents per share, but still managed to beat analyst expectations. Excluding restructuring expenses, Staples reported earnings of 22 cents per share, one cent ahead of analyst consensus from Thomson Reuters.
Other stocks to watch include bookseller Borders Group (BGP), which posted a narrower quarterly loss late Tuesday.
World markets: Stocks in Asia soared, boosted by the overnight gains on Wall Street. European markets were mostly lower in midday trading.
Oil and money: The dollar rose against the euro and the yen, but slipped against the British pound. The price of oil rose 25 cents to $62.70 a barrel. 
