Here are five things you must know for Tuesday, May 7:
1. -- Stock Futures Point Lower Ahead of Trade Talks
U.S. stock futures slumped on Tuesday, indicating a second straight day of losses on Wall Street, as investors focused on trade talks later this week between Washington and Beijing.
Stocks tumbled Monday in the wake of a threat from Donald Trump to raise tariffs on billions worth of China-made goods but pared losses on news that China's powerful vice premier, Liu He, confirmed he would be traveling to Washington Thursday for two days of high-level talks with U.S. officials.
U.S. Treasury Secretary Steve Mnuchin and Trade Representative Robert Lighthizer both cited China's backtracking on previous reform commitments during the later stages of the months-long talks as the reason for the president's ire on Twitter over the weekend.
"They were trying to go back on language that had been previously negotiated, very clear language, that had the potential of changing the deal dramatically," Mnuchin said. "The entire economic team are completely unified and recommended to the president to move forward with tariffs if we are not able to conclude a deal by the end of the week."
Contracts tied to the Dow Jones Industrial Average fell 155 points, futures for the S&P 500 were down 17.40 points, and Nasdaq futures declined 51.25 points.
The economic calendar in the U.S. Tuesday includes the Job Openings and Labor Turnover Survey for March at 10 a.m. ET.
2. -- Lyft to Issue First Earnings Report as Public Company
Lyft's (LYFT) first earnings report as a public company is scheduled for after the bell Tuesday.
Since its March 29 public offering, the stock has declined about 20% - and it's among the most-shorted stocks on the market with 80% short interest as a percentage of overall float. For Lyft and its investors, it is also impossible to escape one big event looming over its shares: The upcoming initial public offering of its larger rival, Uber.
Analysts surveyed by FactSet expect Lyft to report an adjusted loss of $4.85 a share on revenue of $740.1 million, higher than year-earlier revenue of $397.2 million.
Earnings reports are also expected Tuesday from Allergan (AGN) , Electronic Arts (EA) , Sprint (S) , Emerson Electric (EMR) , Dean Foods (DF) , SeaWorld Entertainment (SEAS) , Lumentum Holdings (LITE) , Papa John's International (PZZA) and Wynn Resorts (WYNN) .
3. -- Anadarko Favors 'Superior' Proposal From Occidental
Anadarko Petroleum (APC) moved closer to sealing its planned takeover by Occidental Petroleum (OXY) after its board approved the $38 billion bid over a rival approach from Chevron (CVX) and it agreed to sell some of its African assets to France's Total (TOT) .
Anadarko said Occidental's move to secure financing for the cash portion of its revised bid, which includes a $59 per share consideration and 0.2934 in Occidental common stock, makes it a "superior proposal" to Chevron's 75% stock and 25% cash deal.
Chevron has four business days to make another offer, Anadarko said. If Chevron doesn't submit another bid and the deal is terminated, Anadarko will have to pay Chevron a $1 billion breakup fee.
A Chevron spokesman told The Wall Street Journal it had received Anadarko's notification and had no further comment at this time.
4. -- AIG Surges Following Big First-Quarter Earnings Beat
American International Group (AIG) jumped in premarket trading Tuesday after the insurance giant's first-quarter adjusted earnings came in better than expected.
Earnings adjusted for net realized capital gains and restructuring costs were $1.58 a share, beating forecasts of $1.06 a share. Revenue in the quarter was $12.46 billion, which also beat analysts' forecasts of $12.07 billion.
Underwriting income at AIG's general insurance unit was $179 million in the first quarter, a swing from a year-earlier underwriting loss of $251 million. It was AIG's first underwriting profit since the financial crisis, according to Reuters.
"We achieved an underwriting profit on a calendar year and accident year basis in the first quarter and we expect that to continue for the full year," said CEO Brian Duperreault.
Shares rose 7.2% to $50.50 in premarket trading.
5. -- AB InBev's Earnings Rise, Says Considering IPO for Asia Unit
Anheuser-Busch InBev (BUD) , the world's largest brewer, posted first-quarter earnings of $3.57 billion, a jump from a year-earlier profit of $1.02 billion.
Earnings before interest, taxes, depreciation and amortization rose 8.2% to $4.99 billion. First-quarter revenue rose 5.9% to $12.56 billion.
The brewer of Budweiser and Stella Artois also confirmed it was considering an initial public offering of its Asian unit on the Hong Kong stock exchange, a deal that could value the business at as much as $70 billion, according to Bloomberg. Debt at Anheuser-Busch InBev has grown to more than $100 billion following its acquisition in 2016 of SABMiller.
"The merits are really connected to creating a local champion in the consumer space," Chief Financial Officer Felipe Dutra told Bloomberg. "It's a good platform for potential consolidation, and if we decide to proceed with the listing, we'll get to our deleveraging target faster."
American depositary receipts of Anheuser-Busch InBev declined 2.1% to $85.96 in premarket trading.