With tech earnings continuing to exert pressure on the markets, Wall Street looks set to start Wednesday's session weaker. Apple's earnings, despite beating expectations have elicited a negative reaction from the Street, attributable to soft iPhone numbers. Yahoo's mixed quarterly numbers together with Microsoft's hefty loss could leave traders a little unsettled. Commodities continue to be weaker, with gold at 5-year lows, even as the dollar has turned mixed. The domestic markets may stay tuned to the earnings flow, existing home sales data and the Greek Parliamentary vote on further austerity measures required for an eventual bailout.
At 6:15 am ET, the Dow futures are slipping 78 points and the S&P 500 futures are receding 8.50 points, while the Nasdaq 100 futures are down 51 points.
U.S. stocks declined sharply on Tuesday, weighed down by some weak earnings amid a lack of any major economic catalysts.
On the economic front, the Federal Home Finance Agency is scheduled to release its house price index for May at 9 am ET. Economists expect a 0.4 percent month-over-month increase in house prices compared to a 0.3 percent increase in April.
The National Association of Realtors is due to release its existing home sales report for June at 10 am ET. Economists expect existing home sales to come in at a seasonally adjusted annual rate of 5.40 million units compared to a 5.35 million rate in May.
The Energy Information will release its weekly petroleum status report for the week ended 17th at 10:30 am ET.
In corporate news, Apple (AAPL) reported better than expected third quarter results, while its iPhone unit sales trailed estimates by some analysts. The company's fourth quarter revenue guidance was lackluster.
Yahoo! (YHOO) reported below-consensus adjusted earnings per share, while its revenues sneaked past estimates. Microsoft (MSFT) reported a loss for its June quarter, weighed down by charges related to its acquisition of Nokia's (NOK) devices and services business. However, adjusted earnings per share and revenues exceeded estimates.
Linear Technology (LLTC) reported fourth quarter earnings and revenues that trailed estimates. The company also cautioned of a tough first quarter and sees a 7-12 percent sequential revenue decline for the quarter.
Vmware (VMW) reported better than expected second quarter earnings per share, while its revenues trailed expectations. GoPro's (GPRO) second quarter results beat estimates. Insurer ACE (ACE) reported better than expected second quarter operating earnings per share.
American Express (AXP), Ameriprise Financial (AMP), Cheesecake Factory (CAKE), Discover Financial Services (DFS), F5 Networks (FFIV), Las Vegas Sands (LVS), Logitech International (LOGI), Newmont Mining (NEM), Qualcomm (QCOM), Sallie Mae (SLM), SanDisk (SNDK), Texas Instruments (TXN) and Xilinx (XLNX) are among the companies due to release their quarterly results after the close of trading.
The Asian markets closed on a mixed note, as the weak lead from Wall Street overnight rendered the mood cautious. The Chinese, Indian, New Zealand and Indonesian markets ended higher, while most other markets came under selling pressure.
The Japanese market succumbed to the rebound by the yen. With Bank of Japan Governor Haruhiko Kuroda stating that inflation would return to the central bank's target by the end of 2016, the yen moved to the upside. The Nikkei 225 average ended down 248.30 points or 1.19 percent at 20,594. Australia's All Ordinaries languished below the unchanged line throughout the session before ending down 85 points or 1.49 percent at 5,604.
Hong Kong's Hang Seng Index ended at 25,283, down 253.81 points or 0.99 percent, while China's Shanghai Composite Index ended a volatile session up 8.37 points or 0.21 percent at 4,026.
On the economic front, a report released by Japan's Ministry of Economy, Trade and Industry showed that an index measuring all industry activity fell 0.5 percent month-over-month in May, smaller than the 0.6 percent drop expected by economists. Twin reports released by the Australian Bureau of Statistics and the Reserve Bank of Australia's showed that inflation in Australia remains tame. Meanwhile, in a speech, Reserve Bank of Australia said further rate cuts could be in the offing, although such an action would be taken only after assessing longer-term risks.
European stocks are lower for a second straight day after seeing a 9-day run up on Greek optimism. Traders exercised caution as the Greek Parliament is set to vote on further austerity measures to resume the negotiations on a third bailout that is widely expected to bring the economy back on the rails.
In corporate news, easyJet reported a small drop in third quarter revenues, hurt by French air traffic control strike and a fire at its base in Rome. The company's full year guidance was also largely in line. Spanish utility Iberdrola reported better than expected results for its first half. BHP Billiton (BHP) reported a strong increase in iron ore output for the June quarter. ARM Holdings (ARMH) reported below consensus revenues for its second quarter.
On the economic front, the minutes of the Bank of England's July Monetary Policy Committee meeting showed that the decision to hold rates and the size of the asset purchase program unchanged was unanimous. The committee had judged that the actual path of rates over the next few years is data dependent.
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