Stock futures are little changed as investors brace for more earnings reports

U.S. stock futures were little changed Wednesday as traders continued to review corporate reports in a busy earnings season.

Dow Jones Industrial Average futures dipped 15 points, or 0.05%. S&P 500 dipped 0.03% and Nasdaq 100 futures gained 0.02%.

Investors are bracing for a choppy earnings season, even after coming off a sharp rally in the previous session, as they search for more clues into the state of the economy.

"Despite Tuesday's more positive trading session, we don't expect a sustained improvement in market sentiment until investors get greater clarity on the outlook for the economy, central bank policy, and political risks," UBS' Mark Haefele wrote in a Wednesday note.

A report from the Mortgage Bankers Association pointed to more pain for U.S. consumers as they deal with higher prices and interest rates. Mortgage demand declined more than 6% last week compared with the prior week, dropping to its lowest level in 22 years.

Netflix surged more than 7% in after-hours trading after saying it lost only 970,000 subscribers in the second quarter, less than the 2 million it had previously projected. The streaming giant's earnings per share also came in above analyst expectations.

Biogen and Baker Hughes are among the companies set to report later in the morning. Tesla and United Airlines are slated to post their latest quarterly results after the close.

About 10% of S&P 500 companies have reported earnings thus far. Of those companies, nearly 69% have beaten analyst expectations, according to FactSet. Investors had been awaiting this earnings season as they search for clues on how companies are faring with inflation at levels not seen in 40 years.

The market was coming off a strong session, with the Dow rallying more than 700 points Tuesday. The S&P 500 and Nasdaq soared 2.8% and 3.1%.

The three benchmarks also closed above their respective 50-day moving averages for the first time since April, as traders bet the market had found a bottom.

"We view this bullish breadth day as a sign that the summer rebound for US equities can continue," Bank of America strategist Stephen Suttmeier wrote in a Wednesday note.

Bank of America's latest survey of professional investors showed that deteriorating investor sentiment has potentially set up a buying opportunity in the market. The U.S. dollar, which recently surged to a 20-year high against the euro, softened, giving the rally more steam.