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Futures Tumble Amid Ongoing Economic Fears

Futures continued to decline Wednesday after the previous session's sharp rally as investors remained cautious over the prospects for the U.S. economy and the ongoing euro zone crisis.

On Tuesday, stocks surged to see its biggest one-day gain since May 2010in wild day of trading even after the Federal Reserve's statement promising interest rates would remain at their current low level for the next two yearsdid little to alleviate fears over the economy.

According to a Reuters poll, economists saw odds of around one-in-three that the U.S will slip back into recession, heightening expectations the Fed will launch another round of monetary easing.

Goldman Sachs also reviewed its position on monetary stimulus, saying there is a chance that the Fed will resume quantitative easing later this yer or in early 2012.

Meanwhile, gold prices held steady, hovering near an all-time high around $1,778 an ounce. (Read More: What's the Best Way to Invest in Gold?)

In corporate news, HSBC confirmed it was selling its $30 billion U.S. credit card arm to Capital One Financial for a premium of $2.6 billion, as Europe's top bank streamlines its operations by getting rid of unwanted businesses.

On the earnings front, Macy's gained after the department-store chain reported a higher-than-expected profitand raised its earnings forecast.

Disney beat both profit and revenue expectations, thanks to strong performances at ESPN and its theme-park division. However, Evercore Partners cut its price target on the conglomerate to $44 from $50.

Tech bellwether Cisco and media giant NewsCorp are slated to post earnings after-the-bell tonight.

GE was added to Citi's "top picks" list.

On the economic front, weekly mortgage applications gained last weekas interest rates plunged to their lowest level in 2011, according to the Mortgage Bankers Association.

Wholesale trade inventories for June are due at 10:00 am ET and crude inventories data for the week ending August 6 is also due out at 10:30am ET.

European shares turned negative, led lower by Italian and French banks as renewed concerns over the euro zone sovereign debt crisis overturned some earlier enthusiasm in choppy trade.

Coming Up This Week:

WEDNESDAY: Wholesale trade, oil inventories, 10-yr note auction, treasury budget; Earnings from Macy's, Cisco
THURSDAY: International trade, jobless claims, 30-yr bond auction, money supply; Earnings from Kohl's, Nordstrom, Nvidia
FRIDAY: Retail sales, consumer sentiment, business inventories; Earnings from JCPenney

Symbol
Price
 
Change
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COF
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CSCO
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DIS
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GE
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HSBA
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M
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FOXA
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