Futures Decline After Tepid Earnings; BAC Falls
U.S. stock index futures were lower Wednesday, pressured by some weaker-than-expected earnings and amid worries over global growth.
Among earnings, Bank of America slipped after the financial giant posted results that that fell short of expectations. In addition, Bank of New York Mellon also declined after the bank missed earnings expectations, while revenue was mostly in line.
Intel traded lower after the chipmaker missed earnings estimates by a penny and expects a current-quarter revenue decline of as much as eight percent due to a drop in PC sales. And Yahoo dipped after the Internet giant posted sales that fell short of forecasts and said it expects current-quarter revenue below Street estimates.
The Financial Times reported on Wednesday that a senior auditor in China had warned that local government debt is "out of control" and could spark a bigger financial crisis than the U.S. housing market crash. The report comes after disappointing growth numbers from China on Monday sparked a sell-off in commodities, which fed through to global equities.
(Read More: Has China's Economy Hit a 'Dead End'?)
In other stocks news, the Wall Street Journal reported that Procter & Gamble plans to increase the time it allows to pay its suppliers by up to 30 days, freeing up to $2 billion in cash.
Meanwhile, a New York appeals judge prevented J.C. Penney from selling certain Martha Stewart Living Omnimedia goods in its stores until Thursday. The court is expected on Thursday to decide whether to extend the block as Macy's continues to appeal.
Macroeconomic releases on Wednesday will include the Federal Reserve's April edition of the Beige Book, its region-by-region assessment of the economy, out at 2 p.m. ET.
Crude oil inventories for last week will be released by the Energy Department at 10:30 a.m. ET. Inventories rose by 250,000 in the prior week.
Also on Wednesday, U.S. Treasury Secretary Jacob Lew will speak at Johns Hopkins University in Washington and Federal Reserve officials James Bullard and Eric Rosengren will speak at the 22nd Annual Hyman P. Minsky conference in New York.
The International Monetary Fund downgraded its outlook for U.S. growth in its latest "World Economic Report". The IMF now forecasts the U.S. will grow by 1.9 percent in 2013 and 4 percent in 2014.
Derek Halpenny, European Head of global markets research at Bank of Tokyo-Mitsubishi, said the growth forecasts were "still respectable" when compared to those of other advanced economies.
"It is essentially the story behind why the financial markets now expect the Fed's quantitative easing program to be tapered later this year and terminated in the first half of 2014," said Halpenny.
(Read More: IMF: There Is No Silver Bullet for Debt Concerns)
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
WEDNESDAY: Oil inventories, Boston Fed's Rosengren speaks, Beige Book, Treasury Secretary Lew speaks, Carnival Corp. annual mtg, Gap investor mtg; Earnings from American Express, Ebay, Noble, Sandisk
THURSDAY: Jobless claims, Minneapolis Fed's Kocherlakota speaks, Philadelphia Fed survey, Richmond Fed's Lacker speaks, leading indicators, natural gas inventories Fed Gov. Raskin speaks, Fed balance sheet/money supply, Ebay shareholders mtg, Texas Instruments annual mtg, G20 finance ministers mtg; Earnings from Morgan Stanley, PepsiCo, Philip Morris, United Health, Verizon, Nokia, Peabody Energy, Google, IBM, Microsoft, Capital One, Chipotle, E-Trade Financial
FRIDAY: Fed Gov. Stein speaks, IMF spring mtg; Earnings from GE, McDonald's, Schlumberger, Baker Huges, Honeywell
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