After seeing some notable upside during the previous session, stocks are likely to move back to the downside in early trading on Wednesday, as investors take some profits while looking over some big earnings news and a report on mortgage applications.

Earlier in the day, Dow component Boeing (BA) reported first quarter net income of $610 million, down 50 percent from last year quarter's $1.21 billion. Earnings per share came in at $0.86, versus the prior year quarter's $1.62.

Revenues for the quarter rose 3 percent to $16.5 billion from last year period's $15.99 billion. Analysts polled by Thomson Reuters expected the company to report earnings for the quarter of $0.91 per share on revenues of $16.70 billion.

Additionally, the aerospace said that 2009 revenue guidance is reaffirmed at $68 to $69 billion. However, the company lowered its earnings per share guidance to $4.70 to $5.00 range from its previous outlook of $5.05 to $5.35 due to lower earnings at its commercial airplanes business.

Meanwhile, fast food giant McDonald's (MCD) reported first quarter net income of $0.87 per share, compared to $0.81 per share in the same quarter of last year, while analysts expected the company to report earnings of $0.82 per share.

Total revenues for the quarter were $5.08 billion, compared to $5.61 billion in the prior year quarter. Fifteen analysts had consensus revenue estimate of $5.19 billion for the quarter.

Additionally, Yahoo (YHOO), owner of Internet's second most popular search engine, said Tuesday after the markets closed that its first quarter profit fell 78 percent from last year. The company also said it expects to reduce its current global workforce by about 5 percent.

On the economic front, the Mortgage Bankers Association said mortgage applications rose 5.3 percent last week due to an uptick in refinance applications.

Refinance applications were up an unadjusted 7.7 percent last week versus the week before, while applications for mortgages to purchase a home were down 4.2 percent.

Stocks showed a strong upward move over the course of the trading day on Tuesday, partly offsetting Monday's sell-off. While stocks saw initial weakness on disappointing earnings news, a positive reaction to comments from Treasury Secretary Geithner drove the markets higher.

After moving lower in early trading, the major averages climbed firmly into positive territory over the course of the morning and saw some further upside in the afternoon. The Dow eventually closed up nearly 130 points after ending Monday's trading down nearly 290 points.

Crude oil futures for June delivery are trading down $0.05 at $48.50 a barrel in their first session as the front month contract. Meanwhile, gold futures, which fell $4.80 to $882.70 an ounce on Tuesday, are currently up $2.40 at $885.10 an ounce.

On the currency front, the U.S. dollar is currently trading at 97.785 yen after it rose to 98.735 yen by the close of New York trading on Tuesday. Meanwhile, against the euro, the dollar is valued at $1.2954.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Wednesday. While notable strength was visible in South Korea, the markets in Hong Kong and mainland China experienced considerable weakness.

The major European markets have all moved lower over the course of the trading day, with the U.K.'s FTSE 100 Index currently down 0.9 percent, while the French CAC 40 Index and the German DAX Index are down 0.8 percent and 1 percent, respectively.

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