Futures on major U.S. stock indices point to a lower opening on Wednesday with futures on the S&P 500 down 0.21 percent, futures on the Dow Jones Industrial Average down 0.26 percent and Nasdaq100 futures down 0.03 percent.
On Tuesday, a moderate stock rally fueled by a compromise between President Obama and Republicans on tax extensions and unemployment benefits petered out in late-session trading, resulting in narrowly mixed results for major equity indices.
On the corporate front, Texas Instruments narrowed its earnings and revenue forecasts for the fourth quarter on late Tuesday. The company said quarterly earnings are currently expected to range from $0.61 to $0.65 per share compared to previous estimation of $0.59 to $0.67 per share.
U.S. retailer Costco Wholesale Corp reported 18 percent rise in first quarter net income on higher total and comparable sales. The company earned $312 million or $0.71 per share against analysts’ estimation of $0.69 per share.
The dollar strengthened against most of its counterparts for the second day as extension of tax cuts brightened the outlook for U.S. growth. The euro declined 0.21 percent to 1.3234 against the dollar and the yen declined 0.44 percent against the greenback.
Crude oil futures declined 0.59 percent to $88.37/barrel ahead of inventory data and gold futures declined 0.82 percent.
Late Tuesday, the Irish government presented what was likely the toughest austerity budget in its history, comprising spending cuts of 6 billion euros ($8-billion) and an increase in taxes, in addition to other measures already outlined last month in the so-called “National Recovery Plan.”
European stock markets are currently trading mixed with FTSE 100 down by 6.53 points and DAX30 down by 20.43 points, while CAC 40 up by 3.86 points.