MARKET SNAPSHOT: U.S. Stocks: Futures Slip; Rate Fears Resurface

By Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- U.S. stock futures lost ground Wednesday ahead of Wall Street's open as fears about interest-rate hikes from the Federal Reserve resurfaced as Treasury yields rose to highest level in six weeks.

Apple Inc. could see pressure after one analyst downgraded its shares. The company unveiled a new iPhone and its Apple Watch on Tuesday. Krispy Kreme Doughnuts Inc., Land's End and GT Advance Technologies shares were active premarket.

Futures for the Dow Jones Industrial Average (DJU4) were down 14 points at 17,020, while those for the S&P 500 index (SPU4) were off 2 points to 1,987.70. Futures for the Nasdaq-100 index (NDU4) slipped 3 points to 4,062.

A thin economic calendar will keep the spotlight on recent consolidation for Wall Street. A report on wholesale inventories for July is expected Wednesday at 10 a.m. Eastern, the sole data release expected.

The S&P 500 (SPX) fell 0.7% to 1,988.44 on Tuesday, its fourth loss in the last five trading days.

Fed triggers jitters: Craig Erlam, market analyst at Alpari, said a lack of fresh economic data is weighing on stocks globally, but rising bond yields, particularly in the U.S., may be the bigger culprit.

"Rising yields may reflect a slight repricing of the first rate hike, with some believing that markets had priced in a later hike than the Fed is suggesting," he said in a note. But he said there isn't any recent evidence to suggest the Fed has indeed brought rate-hike expectations forward.

Investors will look to next week's Federal Open Market Committee meeting for fresh guidance on rates.

European markets came off intraday lows. Asian markets were lower, with the exception of a small rise for the Nikkei 225 index .

Stocks to watch: Analysts at Pacific Crest cut Apple (AAPL) to sector perform, citing a lack of new "profit drivers" to maintain an outperform rating after the iPhone maker unveiled the latest version of its popular phone and a new Apple Watch wearable device on Tuesday.

GT Advanced Technologies Inc. (GTAT) shares slid 8.23% after it became clear that Apple won't move toward broad use of sapphire cover screens, which GT provides.

Shares of Microsoft (MSFT) could grab attention on a report in The Wall Street Journal that the technology group is set to pay about $2 billion in a deal to buy the maker of the popular "Minecraft" videogame.

Land's End Inc. (LE) shares rallied nearly 6% after the clothing retailer posted better-than-expected sales and profit in its fiscal second quarter.

Dollar General (DG) may see action as the company takes its $9.1 billion offer to buy Family Dollar Stores (FDO) directly to its rival's shareholders. The move comes after Family Dollar's board rejected the takeover offer.

Krispy Kreme Doughnuts (KKD) skidded more than 6% in after-hours trading Tuesday after the doughnut chain posted stronger sales, but adjusted profit missed forecasts.

Other markets: As investors backed away from stocks, gold prices(GCZ4) rose and the dollar continued to climb, hitting another nearly six-year high against the yen (USDJPY).

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