Investing.com - Here are the top five things you need to know in financial markets on Wednesday, July 25:
1. U.S.-EU Trade Talks
Investor sentiment is somewhat cautious ahead of a meeting between U.S. President Donald Trump and European Commission President Jean-Claude Juncker at the White House this afternoon.
The meeting comes amid strained trade relations between the European Union and the United States.
Trump has already slapped tariffs on steel and aluminum imports from the EU and has threatened to extend those measures to the European auto sector, which would prompt retaliatory action from Brussels.
Ahead of the talks Trump tweeted that tariffs are “great”, and claimed the U.S. is being treated as a “piggy bank” by countries who run a trade surplus with it.
He also called for both sides to completely abolish tariffs, subsidies and other trade barriers.
2. Facebook, Boeing Earnings To Grab Attention
Facebook earnings after the bell will be the day’s most anticipated report, as the busiest week of the second-quarter earnings season continues.
The consensus at the Street shows another blowout quarter, with revenue rising to $13.35 billion, up from $9.32 billion in the year-ago period, and adjusted earnings per share rising to $1.71 from $1.59.
The stock (NASDAQ:FB) is trading near an all-time high after a tumultuous start to the year.
Besides Facebook, Wednesday will be a very busy day for corporate results with Boeing (NYSE:BA), General Motors (NYSE:GM), Coca-Cola (NYSE:KO), United Parcel Service (NYSE:UPS), and Grubhub (NYSE:GRUB) the notable reporters before the market open.
And after the market close, Facebook earnings will also be accompanied by results from PayPal (NASDAQ:PYPL), Ford (NYSE:F), Visa (NYSE:V), Advanced Micro Devices (NASDAQ:AMD), Gilead Sciences (NASDAQ:GILD), Qualcomm (NASDAQ:QCOM), Mondelez (NASDAQ:MDLZ), and Mattel (NASDAQ:MAT).
AT&T (NYSE:T) will also be in focus after the telecom giant missed analysts' revenue expectations, generating $38.99 billion versus the $39.39 billion that was expected.
3. U.S. Stock Futures Point To Subdued Open
U.S. stock futures pointed to a subdued open, with the topic of trade resurfacing as the head of the European Commission meets with President Trump.
At 5:20AM ET, the blue-chip Dow futures were down 12 points, or less than 0.1%, while the S&P 500 futures and the tech-heavy Nasdaq 100 futures were both set to open little changed from the previous session.
Elsewhere, European markets hovered around the flatline, with the different sectors taking opposite directions. Basic resources and autos were the worst-performers in early deals given their link to trade.
Earlier, Asian markets closed mixed, with benchmarks in Japan and Hong Kong tracking higher. Mainland China stocks finished the session near breakeven.
4. Dollar Ticks Lower Ahead Of Housing Data
Away from equities, the U.S. dollar was a shade lower, as investors looked ahead to U.S. housing data for further clues on when and how fast the Federal Reserve will raise interest rates.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down almost 0.2% at 94.23.
Elsewhere, in the bond market, U.S. Treasury prices ticked higher, pushing yields lower across the curve, with the benchmark 10-year yield dipping to around 2.94%, while the Fed-sensitive 2-year note was near 2.64%.
Economic data set for release on Wednesday include the June report on new home sales, which are expected to fall 2.8% from the prior month.
5. Weekly EIA Oil Supply Report In Focus
The U.S. Energy Information Administration (EIA) will release its official weekly oil supplies report for the week ended July 20 at 10:30AM ET, amid forecasts for an oil-stock drop of 2.3 million barrels.
After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories fell by 3.16 million barrels last week. The API data also showed supplies of gasoline fell by 4.87 barrels, while distillate stockpiles slid 1.32 million barrels.
Oil prices were higher for the second day in a row.
U.S. West Texas Intermediate rose 12 cents, or 0.2%, to $68.64 a barrel, having settled the previous session up 63 cents, or nearly 1%.
Brent crude gained 60 cents, or 0.8%, to $74.04.