US pre-open: Futures trade lower as Treasury yields rise

Wall Street futures were firmly in the red ahead of the bell on Wednesday as Treasury yields rose and earnings remained in focus.

As of 1300 BST, Dow Jones futures were down 0.28%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.47% and 0.70% weaker, respectively.

The Dow closed just 10.55 points lower on Tuesday following a handful of quarterly earnings reports.

Treasury yields rose in pre-market trading, with the two-year note yielding 4.276% and its benchmark ten-year counterpart sitting at around 3.623% as market participants put money on the Federal Reserve having to again raise rates when it meets on 3 May after news from across the pond revealed inflation had risen 10.1% year-on-year in the UK.

Also in focus, streaming behemoth Netflix posted disappointing earnings overnight, with the group beating on earnings estimates but falling short of revenue expectations. Elsewhere in the corporate space, Morgan Stanley and Tesla will both report earnings on Wednesday.

On the macro front, mortgage applications slumped 8.8% in the week ended 14 April, according to the Mortgage Bankers Association of America, a stark reversal from the prior week's 5.3% rise. Applications to purchase a home tumbled 10%, while applications to refinance a home loan dropped 5.8%. MBA chief economist Joel Kan said: "Affordability challenges persist and there is limited for-sale inventory in many markets across the country, so buyers remain selective on when they act."

Still to come, the Federal Reserve's beige book will be published at 1900 BST.

Reporting by Iain Gilbert at Sharecast.com