U.S. stock futures headed lower Wednesday after a series of worse-than-expected earnings results.

Ambac Financial Group swung to a loss for the first quarter on a further US$1.73 billion in collateralized-debt-obligation losses and US$1.04 billion in loss provisions, as the second-biggest bond insurer in the U.S. continued to be weighed down by the credit crunch.

Moody’s reported a 31% drop in first-quarter net income, as the credit ratings and research agency posted revenue declines in many of its segments, reflecting credit-market turmoil.

Delta Air Lines reported losses of US$6.4 billion during its first quarter, as the company took a noncash charge of US$6.1 billion, reflecting a decline in its market value as sustained record fuel prices take their toll.

Tech bellwether Apple reports after the close of trading.

Here at home, retailers reported their first sales decrease in five months in February. Retail sales fell 0.7% in February to an estimated $35.5 billion, Statistics Canada reported today.

None of the eight retail trade sectors showed higher sales in February, and two posted reductions of 1.0% or more. Despite the decline in February, and moderate sales in the middle of 2007, retail sales have generally been rising at a rapid clip since 2004, StatsCan said.

The Canadian dollar opened at US99.19¢, down 0.02 cent from Tuesday.

In other earnings news, Precision Drilling Trust reported a 33% decline in first-quarter earnings to $106.3 million as revenue fell 17% from a year earlier to $342.7 million.

Norbord Inc. reported a first-quarter loss of US$31 million, or 21¢ a share, as U.S. home-building continues to collapse.

Light sweet crude for June delivery was at US$117.63 a barrel on the New York Mercantile Exchange, off 44¢ from Tuesday’s close, while gold declined US$7.40 to US$917.80 an ounce.

Overseas, the Nikkei 225 stock index rose 0.2% to 13,579.16 in Tokyo, while Hong Kong’s Hang Seng rose 350.09 points or 1.4% to 25,289.24.

In Europe, the UK FTSE 100 gained 0.5% to 6,064.80, the German DAX 30 Index climbed 0.6% to 6,767.82 and the French CAC-40 index advanced 0.9% to 4,915.84.

Toronto stocks closed lower on Tuesday, ending a six-session rally, amid disappointing earnings and comments from the Bank of Canada about the health of the Canadian economy.

The S&P/TSX composite index closed down 54.82 points, or 0.38%, at 14,266.34.

The central bank cut its key interest rate by a half a percentage point but said its outlook for the United States has worsened since January, underscoring worries over the impact a slowing U.S. economy could have on Canada.

The junior TSX Venture Exchange dipped 2.34 points to 2,557.48.

U.S. stocks sank on Tuesday as oil prices neared $120 a barrel a series of disappointing profit outlooks from AT&T, DuPont and McDonald’s made the mood even worse.

The Dow Jones industrial average fell 104.79 points, or 0.82%, to 12,720.23. The S&P 500 slid 12.23 points, or 0.88%, to 1,375.94. The Nasdaq composite index dropped 31.10 points, or 1.29%, to 2,376.94.