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Futures Slip on Durable Goods, Debt Worries

Futures moved lower Wednesday following an unexpected drop in durable goods orders and as ongoing worries over a possible U.S. debt default weighed on sentiment.

House Republicans delayed a vote on the debt bill until Thursday.

Most people still expect a last-minute deal but it is still likely the rating agencies could downgrade the United States’ credit rating.

The deadlock over raising the U.S. debt ceiling hit European markets as well on Wednesday.

New orders for durable goods dropped 2.1 percent in June, reversing the previous month's downwardly revised 1.9 percent increase, according to the Commerce Department. Durable goods are items that are meant to last three years or more. Economists expected orders to gain 0.3 percent, according to a poll from Reuters.

Banks were among the top losers, also hit by a Reuters report that German Finance Minister Wolfgang Schaueble was against a carte blanche for the euro zone’s rescue fund to buy bonds on the secondary market.

On the earnings front, Boeing gained after the world's largest aerospace and defense company said earnings jumped 20 percent, helped by higher commercial airplane sales.

Dow Chemical also rose after the chemical maker posted a better-than-expected profit as higher prices and volumes helped offset a jump in raw material costs.

And Aetna climbed after the health insurer posted a profit far above estimates and raised its full-year forecast. Meanwhile, rival WellPoint said while quarterly earnings beat estimates, the company warned that costs for its Medicare plans for seniors were higher than expected this year.

Amazon.com jumped after the online retailer reported better-than-expected earnings Tuesday afternoon. At least four brokerages raised their price targets on the firm.

Meanwhile, Juniper Networks plunged almost 20 percent after the tech firm warned that its results would miss expectations. The firm also forecast weak results in the current quarter and said it expects reductions in spending in the near-term. At least eight brokerages reduced their price targets on the company.

Dunkin Brands lists on the Nasdaq. The parent company of Dunkin Donuts and Baskin Robbins raised $422.75 million after pricing its IPO at $19 per share, well above the range set by underwriters. The company plans to use proceeds from its IPO to repay debt and to help double the number of Dunkin' Donuts outlets in the U.S. over the next 20 years.

On the economic front, the Fed's Beige Book on the economy is released at 2 pm ET.

Weekly mortgage applications declined last weekfollowing a sharp jumped in the prior week as interest rates edged higher, according to the Mortgage Bankers Association.

On Tap This Week:

WEDNESDAY: Oil inventories, 5-yr note auction, Beige Book; Earnings from Aflac, Symantec, Visa, WholeFoods
THURSDAY: Weekly jobless claims, pending home sales, Kansas City Fed survey, Richmond Fed Lacker speaks, 7-yr note auction, San Francisco Fed Williams speaks, money supply; Earnings from AstraZeneca, Credit Suisse, DuPont, ExxonMobil, Royal Dutch Shell, Sanofi, Bristol-Myers Squibb, DR Horton, Kellogg, Motorola Solutions, Sprint, Time Warner Cable, Chesapeake Energy, MetLife, Motorola Mobility, Starbucks
FRIDAY: Employment cost index, GDP, Chicago PMI, consumer sentiment, farm prices; Earnings from Chevron, Merck

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