NEW YORK -
Stock index futures pointed to slight losses at the open on Wednesday as Intel joined the ranks of tech companies to cut their outlooks in a sign of how tepid economic conditions worldwide are hurting revenue.
Financials will also be in focus following results from Bank of America Corp
The Dow component rose 1.3 percent to $8.02 in volatile premarket trading, following similar rallies by JPMorgan Chase
"We're clearly seeing softness in company revenue because of Europe and the global slowdown, and that's a concern," said Oliver Pursche, president at Gary Goldberg Financial Services in Suffern, New York.
"We're seeing those fears spread across industries, but Bank of America is another example of financials being surprisingly strong. That could be a sector that shines because expectations are so low."
Among tech stocks, Advanced Micro Devices
Investors will be looking to Ben Bernanke, the U.S. Federal Reserve chairman, who will deliver the semi-annual "Monetary Policy Report to the Congress" before the House Financial Services Committee.
Bernanke testified before a Senate committee on Tuesday, and while he didn't give any specifics over what the central bank might do to accelerate growth amid signs of weakness, he left the door open to more stimulus if it became clear unemployment was not falling or if deflation risks mounted.
S&P 500 futures fell 4.1 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 25 points and Nasdaq 100 futures lost 5 points.
With 7 percent of S&P 500 companies having reported thus far in the earnings season, 65 percent have beaten profit expectations, according to the latest Thomson Reuters data. Only 15 percent have missed.
In other company news, Vivus Inc
A number of key reports will be released on Wednesday, including those of American Express Co
Groundbreaking on new U.S. homes rose in June to its fastest pace in over three years, lending a helping hand to an economy that has shown worrisome signs of cooling. Futures were little impacted by the data.
Wall Street rose on Tuesday, lifted by strong results from Goldman Sachs
(Editing by Bernadette Baum, Dave Zimmerman)