NEW YORK (AP) -- Stocks appeared headed for a second straight day of losses Wednesday after the Federal Reserve objected to Bank of America's plan to raise its dividend and the Japanese government said that rebuilding costs would make the recent earthquake and tsunami the most expensive natural disaster on record.
The Japanese government announced that it estimated the damage from the recent earthquake and tsunami at more than $300 billion. The widespread devastation is expected to drag the growth rate of the Japanese economy down by 0.5 percent this year. Japanese companies such as Toyota and Honda have suspended production at some plants. Japan's benchmark Nikkei 225 index closed 1.6 percent lower.
In the U.S., Bank of America Corp. stock fell 1.8 percent in pre-market trading after it said that the Federal Reserve rejected its plan to raise its dividend in the second half of this year. The Fed allowed major banks to increase their dividends last week if they passed stress tests. Banks slashed their payouts to shareholders following the financial crisis in order to save cash. Bank of America said that it expects to submit another request to increase its dividend to the Fed this year.
Before the opening bell, Dow Jones industrial average futures were down 15 points, or 0.1 percent, to 11,940. S&P 500 futures were down 2, or 0.2 percent, to 1,286. Nasdaq 100 futures were down 8, or 0.4 percent, to 2,249.
Investors will get a reading on the sales of new single family homes in February after the market opens. Economists have estimated a small increase from January, but are expecting that sales are still far below what is considered a healthy market.
Stocks edged lower Tuesday, ending a three-day rally that had lifted the Dow Jones industrial average above 12,000 for the first time since an earthquake hit Japan more than a week ago. The Dow dipped 17.90 points to close at 12,018.63. The broader Standard & Poor's 500 index fell 4.61, or 0.4 percent, to 1,293.77.