MARKETS / FINANCE

Federal Reserve Chairman Ben Bernanke on Wednesday fought hard to protect the independence of the U.S. central bank and keep responsibility for consumer protection on financial products in its hands.

General Electric Co has received approval to step back from a U.S. government-backed debt program, a change that the largest U.S. conglomerate said will allow it to issue some debt more cheaply.

Share of Advanced Micro Devices Inc fell 12.50 percent to $3.57 Wednesday morning as it posted second quarter yesterday evening with another loss deeper than expected.

Investment gains are likely to boost valuations of U.S. property-casualty insurers when they report second-quarter results, after bruising investment losses marred recent quarters.

The Nasdaq climbed on Wednesday following Apple's strong earnings, while gains in the Dow industrials and S&P 500 were curbed as top banks' disappointing results sparked renewed concerns about the financial sector's health.

Morgan Stanley on Wednesday reported a third straight quarterly loss, falling further behind chief rival Goldman Sachs as fixed income and asset management results disappointed.

Wells Fargo said on Wednesday the loan losses increased in the second quarter as borrowers battled to keep their payments up to date. The bank dropped as much as 7.6 percent in New York trading.

Stocks seesawed on Wednesday as disappointing quarterly results from top banks sparked caution over the health of financials, though sentiment rose after a robust earnings report from Apple Inc .

The Australian Dollar opens largely unchanged on Wednesday at 0.8160 and is pausing for breath after six days of steady gains versus its US counterpart. During the domestic session on Tuesday, the Aussie traded as high as 0.8178 after the minutes of the RBA's July 7 board meeting painted a picture of an economy in recovery mode.

Warnings that the world economy still faces a rocky road tempered market enthusiasms on Wednesday, with Japan indicating it might need to do more to ease credit pressures and Britain biding its time.

All derivatives dealers should meet capital, margin, conduct and record-keeping rules, Commodities Futures Trading Commission Chairman Gary Gensler said in a prepared text on Wednesday.

Bernanke on the Hill; Earnings Watch; Housing Index

U.S. stock index futures pointed to a lower open on Wednesday after a batch of corporate earnings mostly beat lowered expectations, but the key financial sector continued to show signs of weakness.

The Obama administration's plan to form a new Consumer Financial Protection Agency, a central part of its bold regulatory reform agenda, sailed onto the shoals of congressional delay on Tuesday.

The moribound U.S. job market still

The global recession has now passed its nadir but the financial crisis still has some time to run and it will be a year at least before banks start lending again in earnest, a Reuters poll showed on Wednesday.

Alternative energy jobs can provide vocations across many sectors of the economy but policy to spark them can take years to develop, U.S. governors told a Senate committee on Tuesday.

Federal Reserve Chairman Ben Bernanke told the market just what it wanted to hear on Tuesday when he promised the central bank has the will and the tools to guide the economy out of recession without spurring inflation.

(Corrects revenues figures in 4th paragraph)

The Housing Price Index will be released at 10am EST today by the Office of Federal Reserve Housing Enterprise Oversight. The index provides an estimated value of housing market conditions. It is an important indicator as the housing market is considered as a sensitive factor to the US economy.

SunTrust Banks Inc , a large U.S. Southeast regional bank, posted its third straight quarterly loss on Wednesday, hurt by an increase in soured commercial and residential loans.

CIT Group Inc said it may post a loss exceeding $1.5 billion for the second quarter and could file for bankruptcy protection if bondholders reject a debt restructuring, raising new fears that the lender to some 1 million businesses might fail.

U.S. stock index futures pointed to a lower open on Wednesday after disappointing quarterly banking results dented recent optimism about the financial sector's recovery.

SunTrust Banks Inc posted its third straight quarterly loss on Wednesday , hurt by an increase in soured commercial and residential loans.

Wells Fargo & Co on Wednesday said quarterly profit increased 47 percent as strong mortgage banking results and the acquisition of Wachovia Corp offset rising credit losses.

General Electric Co said on Wednesday its finance arm has been cleared to exit the government's Temporary Liquidity Guarantee Program, in a show of strength as rival business lender CIT Group Inc faces possible bankruptcy.

Stock index futures fell on Wednesday, a day after the Nasdaq stock index clinched a 10-day winning streak, as investors braced for another round of quarterly results from bellwethers including Morgan Stanley and Boeing Co .

U.S. stock index futures pointed to a lower open on Wall Street on Wednesday, following recent gains, as investors braced themselves for more results from bellwethers such as Morgan Stanley , PepsiCo , Pfizer , Boeing and Wells Fargo .

World stocks clung close to nine-month highs on Wednesday with some profit taking in Europe keeping a lid on further gains and cautious words from U.S. Federal Reserve Chairman Ben Bernanke dampening sentiment.