A woman walks past an Intel logo at the 2012 Computex in Taipei June 5, 2012.STRINGER/TAIWAN/Reuters
U.S. stock index futures were lower on Wednesday as Intel joined the ranks of technology companies that recently cut their earnings outlooks, as tepid growth in the U.S. and slowing global economies dent consumer spending.
Intel Corp late Tuesday cut its full-year revenue outlook, and the company said consumer spending in Europe and the United States was softer than previously thought.
Financials will be in focus following results from Bank of America Corp, which reported a drop in its second-quarter sales and trading revenue. The Dow component fell 0.6 percent to $7.87 in premarket trading.
Advanced Micro Devices and Applied Materials have also cut their guidance in recent weeks, contributing to month-to-date losses of more than 2 per cent in the S&P information technology index. The group is considered a proxy for business spending, and the weak views in the sector could have broader implications.
S&P 500 futures fell 4.8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 38 points and Nasdaq 100 futures lost 7.25 points.
Still, earnings reports at large continue to be solid. With 7 per cent of S&P 500 companies having reported, 65 per cent have beaten profit expectations, according to the latest Thomson Reuters data. Only 15 per cent have missed.
Wall Street rose on Tuesday, lifted by strong results from Goldman Sachs and Coca-Cola Co. Still, the S&P has posted losses in seven of the last nine sessions, falling about 1 per cent.
A number of key reports will be released on Wednesday, including those of American Express Co and International Business Machines Corp. Bank of New York Mellon and PNC Financial reported earlier on Wednesday.
The Canadian dollar opened at 98.68 cents U.S., down 0.08 of a cent from Tuesday's close.