Stock index futures fell on Wednesday, extending the previous day's slide, as signs the U.S. economy's recovery is slowing and worries about European debt weighed on sentiment.
Recent weak U.S. data, including soft manufacturing figures from the Atlantic region and disappointing New York and Philadelphia Fed manufacturing surveys, pointed to a slowdown in the pace of economic growth.
For more insight into manufacturing, investors will focus on U.S. durable goods orders for April due at 8:30 a.m. (1230 GMT).
Orders for goods made to last three or more years are expected to have dropped 2.2 percent in April, a sharp correction from the gain of 4.1 percent the month. April's performance is likely to be hurt by weak aircraft orders.
Home price numbers are due at 10 a.m. (1400 GMT).
The S&P 500 closed at its lowest level in over a month on Tuesday and ended below its 50-day moving average for a second straight day. The Dow fell for the third session in a row.
It seems like some of the industrial-type market segments that initially led this decline, such as copper and oil, have stabilized. Yet, the U.S. market couldn't really hold it together yesterday, said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.
I expect a choppy trade again, given how oversold we are at this point.
S&P 500 futures fell 1.8 points and were below 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 lost 17 points and Nasdaq 100 futures fell 2.75 points.
In earnings news, Costco Wholesale Corp
Other quarterly earnings set for release include Computer Sciences Corp
The U.S. Treasury made a small profit when it sold a portion of its shares in American International Group Inc
Greece's battle to win support for new austerity measures aimed at bringing its public finances under control and securing the next tranche of bailout funding also weighed on riskier assets.
Finland's parliament approved Portugal's bailout package on Wednesday, with opponents outnumbered by supporters of the 78 billion euro ($110 billion) plan by the European Union and IMF.
U.S. regulators launched one of the biggest ever crackdowns on oil price manipulation on Tuesday, suing two well-known traders and two trading firms owned by Norwegian billionaire John Fredriksen for allegedly making $50 million by squeezing markets in 2008.
In economic news, the OECD said global economic recovery is on track, helped by a stronger United States, but threats ranging from high oil prices to European sovereign debt crises could yet combine to create a bout of stagflation.
(Reporting by Angela Moon, Editing by Kenneth Barry)