U.S. stock index futures were little changed on Wednesday as investors digest Federal Reserve Chair Janet Yellen\’s comments on raising rates of interest and await the end result of a Greek parliament vote around the terms of a third bailout.
The Bank of Canada will announce its rate decision at 10 a.m. Fifteen of 29 economists surveyed by Bloomberg predict the overnight rate will be reduced to 0.5 percent.Bank of America\’s quarterly profit a lot more than doubled as legal costs dropped sharply, driving expenses right down to their lowest since 2008. Its shares rose 2.5 percent to $17.55 in premarket trading.Treasuries erased gains as Fed Chair Janet Yellen reiterated in congressional testimony the Fed will probably raise interest rates this year.At her semi-annual testimony on monetary policy, Yellen will probably face questions on how concerns such as the Chinese stock exchange slump and also the Greece crisis will modify the Fed\’s decision to lift rates. The testimony is at 10 a.m. ET. A duplicate of her speech was offered at 8:30 a.m.Greek Pm Alexis Tsipras is struggling to persuade deeply unhappy leftist lawmakers to prefer a package of austerity measures and economic reforms to secure a new bailout.China\’s second quarter gross domestic product grew in an annual rate of seven per cent, slightly greater than analysts\’ forecast, but the data didn\’t stem the slide in its stock markets in which a quarter of stocks continue to be suspended.The uncertainty in the Chinese market and the strong dollar will be in focus this U.S. earnings season. Corporate America is anticipated to report its worst sales decline in nearly six years in the second quarter, while profit is anticipated to have fallen 2.9 percent, according to Thomson Reuters estimates.Fuel prices will report results before the bell, while Intel and Netflix are scheduled to report following the close.Receptos jumped 10.2 percent to $228.40, a day after Celgene said hello will the smaller biotech company for $7.2 billion. Celegene was up 5.9 percent at $130.20.
Among a raft of economic data due Wednesday, Canada releases factory sales and existing home sales.The Fed will release June industrial output data, that is expected to have increased 0.2 per cent after falling 0.2 percent in May. The information is due at 9:15 a.m. ET.The Fed will even issue, at 2 p.m. ET, its so-called Beige Book, an compendium of anecdotes around the health from the economy.Yum Brands slipped 1.6 percent to $90.50 following the owner of Pizza Hut and KFC reported its fourth straight quarter of falling sales.Netflix will trade on Wednesday for the first time after a seven-for-one stock split.
? Thomson Reuters 2015