×

Futures Higher on Earnings, but Apple Slumps

U.S. stock market futures jumped Wednesday, following three days of sharp declines, as a batch of stronger-than-expected earnings reports helped offset disappointment from Apple's results and worries over the euro zone.

Apple tumbled after the iPhone missed quarterly resultsby a wide margin and handed in current-quarter guidance that disappointed analysts. In addition, at least three brokerages cut their price targets on the firm. Apple's weak results will likely weigh on the tech sector. (Read More: Apple Rivals Swoop Into China, iPhone Learns Mandarin)

Among other earnings, Caterpillar topped Wall Street's profit expectationsand boosted its 2012 earnings forecast. And fellow Dow component Boeing posted earnings that beat estimatesas gains in airplane deliveries trumped higher pension costs.

PepsiCo posted better-than-expected earnings, thanks to price increases, and maintained its full-year outlook.

Meanwhile, ConocoPhillips reported a decline in earnings, hurt by lower energy prices and a drop in output.

Netflix plunged after the movie-streaming company issued a cautious subscriber outlook and said a push into a fourth international market in the fourth quarter will lead to a loss. But the company still topped earnings expectations. Netflix shares have dropped more than 30 percent in the last six months.

Symantec jumped after the security-software maker unexpectedly ousted its CEO Enrique Salem, who had been under heavy criticism from investors for financial disappointments. Separately, the company announced a quarterly outlook that was below projections.

European shares recovered their lossesafter European Central Bank policymaker Ewald Nowotny raised the prospect of steps that could boost the firepower of the euro zone's new bailout fund.

But Spain's 10-year yield continued to rise, hitting a new record high of 7.75 percent, amid worries the country will need a full-scale bailout. And Germany's business confidence index fell for a third-consecutive month in July, touching the lowest level in more than two years.

U.S. Treasury Secretary Timothy Geithner will address the House of Representatives Financial Services Committee on the Financial Stability Oversight Council's annual report to Congress at 9:30 am ET.

New home sales for June, due at 10am ET, are expected to show a total of 370,000 annualized units, up from 369,000 in May, according to Reuters.

Weekly mortgage applications gained last week as record-low interest rates fueled demand for refinancing, according to the Mortgage Bankers Association.

The government is scheduled to auction $35 billion in 5-year notes with the results due shortly after 1pm ET.

—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)

Coming Up This Week:

WEDNESDAY: New home sales, oil inventories, 5-yr note auction, USDA food prices outlook; Earnings from Visa, Symantec, Western Digital, WholeFoods, Zynga
THURSDAY: Durable goods orders, jobless claims, pending home sales, 7-yr note auction, CFTC emergency meeting; Earnings from AstraZeneca, ExxonMobil, 3M, Credit Suisse, Dow Chemical, Pulte, Sprint, Amazon.com, Amgen, Facebook, Expedia, Starbucks
FRIDAY: GDP, consumer sentiment, summer Olympics start, 100 days to election; Earnings from Chevron, Merck, Barclays, DR Horton

More From CNBC.com: