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Top 4 things you need to know about the market on Wednesday
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Loading...1. China's Gross Domestic Product grew by 6.4%, which mitigated concerns about slowdown.
China has published better economic data than expected, lifting concerns about the slowdown in the world's second-largest economy.
Gross domestic product grew by 6.4% in the first quarter, surprising economists who forecast a slowdown of 6.3%.
Industrial production and retail sales also rose more than expected in March, showing economic strength despite US-China trade tensions.
2. IBM and Netflix disappointed investors.
Tech earnings released after the prior session’s close were set to dampen investor sentiment on Wednesday as the first-quarter reporting season stays on track to see the first decline in quarterly profit from S&P 500 firms since 2016.
IBM shares fell 2.6% in pre-market trading after the computer giant reported a higher-than-expected revenue drop, shadowing IBM's strategy to get into the cloud business.
Netflix also disappointed investors after forecast for second quarter profit missed analysts expectations. Shares declined by 1.2%.
3. US Futures are backed up by data in China.
If we leave aside companies earnings, US futures point to a higher opening, as China's positive economic data has increased risky moods. At 12:30 (GMT +3), Dow's futures rose 22 points, or 0.1%, S & P 500 futures were trading at a 5-point increase, or 0.2%, while Nasdaq 100 futures rose by 18 points, or 0.2% .
With US and Chinese negotiations in the background, US economic data will be worth attention when it is published at 15:30 GMT +3. On average, economists expect the US trade deficit to have increased to $ 53.5 billion in February.
4. Qualcomm shares rose due to a positive agreement with Apple, followed by Intel.
Qualcomm shares rose 6% during pre-market trading on Wednesday after reaching a surprising deal with Apple, which will force iPhone to use the company's chips again.
Intel, the only chip provider for Apple's smartphone, announced hours later that it would leave the business of 5G smartphones. Markets seem to have welcomed the company's decision, which led to a 2.6% share growth.
Trader Milko Zashev Read more:
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