U.S. stocks lower as sentiment wanes; Dow Jones down 0.33%

Investing.com - U.S. stocks opened lower on Wednesday, after the release of a string of earings reports, as market sentiment waned ahead of the European Central Bank's upcoming policy-setting meeting

During early U.S. trade, the Dow Jones Industrial Average fell 0.33%, the S&P 500 index shed 0.25%, while the Nasdaq Composite index edged down 0.18%.

The ECB was widely expected to keep rates unchanged at 0.75% on Thursday, while a post-policy meeting press conference by President Mario Draghi would be closely watched for indications on the future direction of monetary policy.

Sentiment had improved on Tuesday after data showed that the euro zone’s final services purchasing managers' index improved to a 10-month high of 48.6 in January from a final reading of 47.2 the previous month, adding to signs of recovery in the region.

The data overshadowed concerns over political uncertainty in Spain and Italy which pushed peripheral borrowing costs higher on Monday.

Among earnings, Disney jumped 1.49% after posting quarterly results that exceeded analysts' expectations amid strong revenue growth in its media networks business and its theme parks.

Time Warner added to gains, with shares surging 3%, after the media company topped earnings expectations as cable network growth offset declines in film, TV, and publishing.

Internet-linked companies were also active, as online gaming firm Zynga rallied 2.74% after reporting an unexpected fourth-quarter profit.

Separately, Take-Two Interactive Software soared 7.44% after it reported higher revenue and earnings in the third quarter, beating analysts' expectations, as the company prepares to launch a new title from its mega-blockbuster "Grand Theft Auto" series.

In addition, online photo-sharing service provider Shutterfly skyrocketed 18.01%, as fourth-quarter results beat analysts' estimates, thanks to higher demand during the holiday season.

Financial stocks were broadly lower on the other hand, as shares in Goldman Sachs slipped 0.27% and Citigroup dropped 0.51%, while Bank of America and JP Morgan tumbled 0.70% and 0.84% respectively.

Bloomberg reported earlier that JP Morgan paid investment bankers and traders about 3% less in 2012, due to the U.S. and Europe's shaky economies.

Other stocks in focus included News Corp, Visa and Yelp, due to report quarterly results after the closing bell.

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 plunged 1.35%, France’s CAC 40 plummeted 1.57%, Germany's DAX tumbled 1.36%, while Britain's FTSE 100 slipped 0.17%.

During the Asian trading session, Hong Kong's Hang Seng Index climbed 0.47%, while Japan’s Nikkei 225 Index surged 3.77%.

Later in the day, the U.S. was to release government data on crude oil inventories.