9:45AM U.S. stocks opened in the negative on rate concerns.

Wall Street opened lower on Wednesday, reflecting inflation and interest rate concerns, sparked by increased European key interest rate and higher unit labor costs Q1. First-quarter productivity came in line with expectations, rising 1%, down from the previous estimate of 1.7%. However, unit labor costs rose a higher-than-expected 1.8%.

Among companies in focus, Guess (GES: chart) climbed 6.2% after the retailer lifted its full-year earnings outlook. TD Ameritrade (AMTD: chart) was another gainer in early trading. The stock rose 4% after two hedge funds with a stake in the brokerage suggested that it should consider a merging deal.

On the side of the losers, Panera Bread (PNRA: chart) tumbled 13% after the retailer cut its Q2 earnings and same-store sales guidance on lower same-store sales expectations and rising costs. Company''s stock was downgraded by Morgan Keegan. Whole Foods Market (WFMI: chart) declined 3.4% after the Federal Trade Commission filed a lawsuit to prevent it from merging with Wild Oats (OATS: chart). Following the news, Morgan Stanley cut Whole Foods rating to equal-weight from overweight.

The blue-chip average was led lower by Alcoa Inc. (AA: chart), Home Depot Inc. (HD: chart) and IBM (IBM: chart), each falling 1.2%. 3M Co (MMM: chart) was another decliner on the Dow, losing 0.7%. The Dow Jones industrial average fell 68.27, or 0.50%, to 13,527.19. The Standard & Poor''s 500 index fell 9.49, or 0.62%, to 1,521.46, and the Nasdaq composite index fell 21.48, or 0.82%, to 2,589.75.


9:30AM The FTSE 100 is lower in afternoon trade Wednesday on banks, retailers.

In late morning trade Wednesday, the FTSE 100 which plunged 67 points, or 1%, to 6,555.4.

Advancers

GlaxoSmithKline, having lost 12% in two weeks, led the gainers on Wednesday, adding 1.72 %, as the pharmaceuticals company defended its diabetes drug Avandia.

The battle for Baggeridge Brick, up 0.2%, intensified as Austrian building group Wienerberger raised its all-cash offer. Recruiting company SThree remains upbeat, 2.4% higher, saying it has continued to perform strongly in the first half and is well-positioned to make further progress for the full year.

Decliners

Next led the large-caps decliners. It lost 4.1% a day after a British Retail Consortium survey announced British retail sales growth slowed in May to its weakest rate in six months. Marks and Spencer shed 3.9 %, and Kingfisher fell 3.2%.

Northern Rock lost 2.9% after JP Morgan downgraded its recommendation from neutral to underweight. Shares in Oxonica slumped 54% after the nanomaterials group terminated a supply agreement and added that it may need to raise additional funds in the next few months.


9:00AM U.S. stock futures pointed lower ahead of economic data.

U.S. stock futures predicted weak market opening on Wednesday, reflecting interest rate concerns after a rate hike in Europe and before data on Q1 productivity.

Declines in European stock markets weighed on U.S. stock futures, as he ECB lifted its key interest rate by 0.25% to 4%, in line with expectations. The Labor Department is expected to report worker productivity increase by 1%, down from the previous estimate of 1.7%. Stronger growth could add to recent worries that the Fed Reserve will increase rates rather than cut them in the near term.

Among pre-market highlights, TD Ameritrade Holding (AMTD: chart) climbed 8% after hedge funds SAC and Jana Partners suggested that the online brokerage firm should either merge with Charles Schwab & Co (SCHW: chart) or E-Trade Financial Corp. Whole Foods Market (WFMI: chart) dropped 2.1% in the pre-open after the Federal Trade Commission decided to file a lawsuit to block the merger of the company with Wild Oats (OATS: chart).

In other corporate news, Guess (GES: chart) rose 4% after the retailer lifted its full-year earnings outlook. Dow Jones industrial futures expiring in June fell 54, or 0.40%, to 13,561. Standard & Poor''''s 500 index futures dropped 6.60, or 0.43%, to 1,527.10. Nasdaq 100 index futures declined 8.50, or 0.44%, to 1,927.50.