U.S. stock futures were on Wednesday cautiously inching higher ahead of the opening of Wall Street trading later, after a brutal prior session for stocks with autos and bank expected to stay in focus.
S&P Futures rose just 1.1 points to 786.70, while Nasdaq 100 futures fell 0.5 points to 1,181.75 and Dow industrials futures rose 3 points to 7,510.
Analysts are eyeballing the S&P 500 closely after it slipped below 800 for the first time in nearly three months on Tuesday. The Dow Jones Industrial Average lost nearly 300 points to close at 7,552.60, just a hair above its bear-market low on Nov. 20 of 7,522.29. Driving the losses were worries over the solvency of General Motors and banking giants Citigroup and Bank of America .
Traders fear that if the S&P dips below 750, a new selling spree could be unleashed. Simon Dimon, managing director of Capital Spreads, said in a note to investors on Wednesday that he expects a small bounce across all indexes today, but the Dow, S&P and the German DAX are all now below serious chart levels.
"After yesterday's savage sell-off we are in wait-and-see mode ahead of housing data, which may come in at an all-time low, and President Obama's speech on a mortgage foreclosure prevention plan. The FOMC minutes later in the day will also be watched for signals on quantitative easing plans," added Martin Slaney, head of derivatives at GFT, in a note to investors.
U.S. housing data is due at 8:30 a.m. Eastern, along with import prices. Industrial production is expected at 9:15 a.m. and later in the day Federal Reserve Chairman Ben Bernanke will be speaking and the Fed will release minutes of the Jan. 28 meeting.
European shares were facing a third straight session of losses as banks, hard hit in the prior session, couldn't hold onto early gains and insurers and oil producers also fell
Shares fell across Asia as financials followed U.S. and Europe stocks lower from the previous session, though Hong Kong recovered some ground. China's Shanghai Composite saw its biggest single-day percentage loss - of 4.7% -- since November.
The dollar continued to trade firmer across the board, with a euro fetching $1.2580, while gold futures were down $1.50 to $966 after jumping over $25 in New York on Tuesday.
March crude oil futures, after Tuesday's tumble, were up 7 cents.
For Wednesday, GM and Chrysler will stay in focus after both submitted requests to the U.S. Treasury late Tuesday that could provide up to $39 billion in emergency loans to keep the carmakers from falling into bankruptcy. Separately, the United Auto Workers union said it has reached a tentative deal to modify labor contracts hammered out in 2007, due to the "extraordinary difficult economic climate."
General Motors shares rose to $2.26 in Frankfurt, up slightly on Tuesday's close.
Banks will also stay in focus with President Obama and Urban Development Secretary Shaun Donovan due to discuss their plan to prevent mortgage foreclosures at 12:15 p.m. Eastern. The banking sector was hit earlier Tuesday after word that PNC Financial Services declared a moratorium on home foreclosures.
Earnings in focus include Comcast, Deere & Co. and Goodyear Tire & Rubber , with Hewlett-Packard and Whole Foods Market results coming after the close.
