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- Top 4 things you need to know about the market on Wednesday
Top 4 things you need to know about the market on Wednesday
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Loading...1. China trade data shows exports weakening
China's exports unexpectedly shrank in April but imports surprised with their first increase in five months, painting a mixed picture of the Chinese economy as Washington attempts to increase pressure on Beijing ahead of high-level negotiations starting Thursday with threats of more tariffs.
President Donald Trump has ordered tariffs on Chinese imports to increase from Friday. While Trump has insisted that China will bear the majority of the costs in the tariff increase, economists are skeptical.
2. Global stocks decline ahead of trade discussions
A sharp selloff on Wall Street a day earlier - with the Dow registering its second-largest percentage drop of the year, while both the S&P 500 and Nasdaq saw their third biggest drop - tainted global stocks on Wednesday.
U.S. futures pointed to a further drop ahead of the arrival of Chinese officials in Washington for two days of trade negotiations on Thursday and Friday. Dow futuresdropped 86 points, or 0.3% by 5:45 AM ET (9:45 GMT), while S&P 500 futures fell 9 points, or 0.3%, and Nasdaq 100 futures traded down 30 points, or 0.4%.
3. Disney on tap for earnings
Amid a handful of earnings due Wednesday, Walt Disney will take pride of place after the market close.
On average, analysts expect that Disney earned $1.57 per share, according to forecasts compiled by Investing.com. Revenue is seen coming in around $14.5 billion.
Expectations have been buoyed by the unprecedented success of “Avengers: Endgame”, which has brought in more than $600 million at the domestic box office alone.
Disney shares are up 22% on the year, sixth among the 30 Dow stocks.
4. Lyft loss casts shadow over Uber IPO
Shares in Lyft fell 1.4% in premarket trade Wednesday after the company reported its first quarterly results since becoming a public company.
The ride-sharing company posted a wider-than-expected quarterly loss, although it managed to top revenue forecasts and provide second-quarter sales guidance that beat consensus. It said it expects losses to peak this year.
Lyft’s results are a reminder of the struggle of ride-hailing companies to turn a profit, creating an awkward backdrop as rival Uber gears up for its own initial public offering. Uber is expected to price the offering on Thursday, with official trading set to start on Friday.
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