Futures tumbled Wednesday after a report showed a much sharper drop in durable-goods orders than expected. Plus, a sharp selloff in China dragged on oil prices, which also weighed on the market.
This came after a mixed session Tuesday that nonetheless had some bullish components — primarily that the Dow pared almost all of a 100-plus-point loss by the close and the Nasdaq rallied to finish the day higher by 0.4 percent — all that despite a disappointing batch of earnings reports and a slump in consumer confidence.
Orders for durable goods, big-ticket items such as refrigerators and cars, fell 2.5 percentin June amid weak demand for communications and transportation equipment. That was much sharper than 1.3-percent decline in May and the 0.6-percent drop economists had expected.
Behold, the day is finally here: Microsoft and Yahoo have finally reached an agreement! The tech titans put years of flirtation to a clsoe with a deal that will combine their search capacities to compete against Google .
Investors, though, were cool to the news finally breaking, sending Yahoo shares lower by 7 percent and Microsoft up less than 0.5 percent in premarket trading.
Another heavy batch of earnings for investors to consider this morning and afternoon.
Earnings before the bell include Coca-Cola Enterprises, ConocoPhillips, Hess, Martha Stewart, Qwest, Sprint Nextel and Time Warner.
After the bell will see quarterly reports from Owens-Illinois, Symantec, and Visa.