Here are five things you must know for Wednesday, May 16:  

1. -- Stock Futures Slip as North Korea Threatens to Call Off Summit 

U.S. stock futures were mostly lower on Wednesday, May 16, as investors reacted to news that North Korea may cancel a planned summit with the United States and as government bond yields traded at multi-year highs amid renewed bets of faster inflation and quicker rate hikes from the Federal Reserve.

North Korea has threatened to pull out of the June 12 meeting with Donald Trump in Singapore if Washington insists on complete denuclearization for the rogue nation.

"If the U.S. is trying to drive us into a corner to force our unilateral nuclear abandonment, we will no longer be interested in such dialogue and cannot but reconsider our proceeding to the DPRK-U.S. summit," North Korea said in a statement that was issued through its state broadcaster.

The situation in Korea, along with solid retail sales and factory data from the United States on Tuesday, May 15, boosted the dollar to the highest levels since late December and took benchmark 10-year U.S. Treasury bonds yields to a July 2011 high of 3.065%.

Contracts tied to the Dow Jones Industrial Average  fell 15 points, those linked to the broader S&P 500   slipped 0.75 points, and Nasdaq futures rose 0.75 points.

If you'd like to receive the free "5 Things You Must Know" newsletter, please register here.

2. -- Cisco and Macy's Report Earnings

Earnings reports are scheduled Wednesday from Cisco Systems Inc. (CSCO) , Macy's Inc. (M) , Jack in the Box Inc. (JACK) and Take-Two Interactive Software Inc. (TTWO) .

The U.S. economic calendar on Wednesday includes Housing Starts for April at 8:30 a.m. ET, Industrial Production for April at 9:15 a.m., and Oil Inventories for the week ended May 11, at 10:30 a.m.

3. -- Tesla Plans 6-Day Factory Stoppage

Tesla Inc. (TSLA) plans a six-day production stoppage at its California factory to work on fixes to its assembly line for its new Model 3 sedan, sources inside the company told Reuters.

Two sources confirmed to Reuters that the next stoppage on the general assembly line at the plant in Fremont, Calif., was scheduled for May 26-31.

The electric carmaker previously had warned of 10 days of temporary shutdowns this quarter as the company addresses manufacturing problems that have delayed volume production of the Model 3 sedan, Reuters noted.

Tesla fell 0.2% in premarket trading.

4. -- Amazon Rolls Out Whole Foods Discounts for Prime Members

Amazon.com Inc. (AMZN) has begun rolling out discounts for Prime members at Whole Foods, which was acquired last year for $13.7 billion.

The benefits start Wednesday at stores in Florida and will expand nationwide this summer. Prime members will get an additional 10% off sale items and exclusive deals on certain groceries.

Amazon is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AMZN? Learn more now.

5. -- Paddy Power Holds Merger Talks With FanDuel 

Dublin bookmaker Paddy Power Betfair PLC (PDYPF) has discussed a combination with fantasy sports website FanDuel.

The move marks the latest in a series of reported deals, including the potential $2.2 billion purchase of the Carolina Panthers by hedge fund billionaire David Tepper, that follow the U.S. Supreme Court's decision earlier this week to lift a ban on sports betting in New Jersey. Analysts have said the ruling that opens the $150-billion-a-year sports betting market around the U.S. could enrich the value of professional leagues and franchises along the way.

"Paddy Power Betfair confirms it is in discussions, regarding a potential combination of the Group's US business and FanDuel to create a combined business to target the prospective US sports betting market," the company said in a statement on Wednesday. "Discussions are ongoing and there is no certainty as to whether agreement will be reached, or as to the terms or timing of any transaction."

 

More from Markets

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers

OPEC Deal Doesn't Boost Production Enough to Drive Down Crude, Gasoline Prices

OPEC Deal Doesn't Boost Production Enough to Drive Down Crude, Gasoline Prices