The Mortgage Bankers Association reported that its index of mortgage loan application volume declined 11.3% for the week ended June 17. The organization's index of purchase activity dropped 9.4%, while its refinance index lost 13.2%.

No major economic data are due to be released on Wednesday.

Dow Jones futures were recently up 28 points, Nasdaq futures were ahead 4.50 points and S&P futures were up 2.60 points.

Crude-oil prices declined 15 cents to $58.89 a barrel early Wednesday ahead of the latest Department of Energy inventory report. Analysts forecast another drop in crude stocks, but growth in petroleum-product shares. Crude futures hover around 50% higher vs. a year earlier.

The dollar traded at 108.90 yen, up versus 108.24 yen late Tuesday, while the euro slid versus the greenback to $1.2110 from $1.2177.

The 10-year Treasury note gained 14/32, or $4.38 per $1,000 invested, to yield 3.995%. The 30-year note advanced 26/32 to yield 4.284%. Yields move inversely to prices.

European shares were higher at mid-day Wednesday as the euro dropped and crude oil remained below $60 a barrel. French conglomerate Bouygues SA gained on a higher quarterly profit, but DaimlerChrysler AG (DCX: chart) lost ground after Ford's lower profit warning.

The German DAX 30 index added 0.4% to 4,627 and the French CAC 40 index gained 0.3% to 4,236. The U.K.'s FTSE 100 index advanced 0.5% to 5,106.

The major Asian markets closed higher on Wednesday. Tech stocks led the rally, with further help coming due to the moderation in crude oil prices. The Japanese Nikkei 225 index gained 58.54 to close at 11,547.28, while Hong Kong's Hang Seng index added 181.67 points to 14,161.02.

In earnings news, investment bank Morgan Stanley (MWD: chart) releases fiscal second-quarter earnings before the opening bell Wednesday. The company has warned investors its earnings could drop about 15% to 20% versus a year ago on poor market conditions. Analysts expect the company firm to earn $1 a share.

Some other companies scheduled to report earnings Wednesday Worthington Industries (WOR: chart), Kerr-McGee (KMG: chart) and Bed Bath & Beyond (BBBY: chart).

Financial services company Bear Stearns (BSC: chart) disclosed in a regulatory filing Wednesday that it may be fined by the Securities and Exchange Commission for its mutual fund practices.

The European Commission Wednesday reported that it has reached an antitrust agreement with Coca-Cola Co. (COKE: chart) that will help Coca-Cola escape a fine if it changes its business practices. The settlement is binding on Coca-Cola until 2010 and it is threatened by penalty equivalent to 10% of worldwide revenue if it breaches the terms of the settlement.

Ford Motor (F: chart) cut its full-year earnings outlook for 2005 for the second time this year and said it plans to make deeper job and cost reductions than previously announced. The auto maker blamed the worse-that-anticipated sales on the slump among its core sport-utility vehicles amid rising gasoline prices. In terms of production Ford said it would terminate 5% of its salaried work force in North America automotive operations, or 1,700 jobs, to cut costs.