Yesterday (Tuesday) was the third triple-digit decline in a row for the Dow Jones, and any upward movement today may seem temporary, driven by hopes of QE3.
The main economic indicator today was new home sales, which fell 8.4% in June to an annual pace of 350,000. Analysts had expected the sales rate to be closer to 380,000.
While home prices and permits to build new homes have risen lately, this report could put a damper on the housing market's turnaround.
In Washington, U.S. Treasury Secretary Timothy Geithner appeared before the House Financial Services Committee Wednesday morning to testify on the economy. He appeared as part of his duties as chief of the regulatory group the Financial Stability Oversight Council.
His opening statement drilled home the point that Europe is the biggest threat to the U.S. economy, but that the banks are in much better financial shape than they were four years ago.
Geithner is expected to be questioned regarding his role in the Libor manipulation scandal while he served on the Federal Reserve Bank of New York.