Here are five things you must know for Wednesday, July 25:
1. -- Stocks Fall Ahead of Trump-Juncker Summit
U.S. stock futures traded lower on Wednesday, July 25, as investors continued to focus on the strength of the corporate earnings season and a key summit on trade between Europe and the United States was set to begin in Washington.
European Commission President Jean-Claude Juncker will lead a delegation from the 28-member EU to the U.S. as he attempts to broker an impasse with the Trump administration on trade and tariffs that began earlier this year when the White House imposed import levies on steel and aluminum.
Reports have suggested the EU was prepared to expand its own list of tariffs on U.S.-made goods, which has already topped €2.8 billion, if it's not able to advance talks with the U.S. president.
The economic calendar in the U.S. on Wednesday includes New Home Sales for June at 10 a.m. ET, and Oil Inventories for the week ended July 20, at 10:30 a.m.
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2. -- AT&T Slips as Revenue Misses Estimates
AT&T Inc.'s (T) - Get Report newly constructed digital advertising, media and telecom machine got a cool reception on Tuesday, July 24, despite an earnings beat from the company, wrote TheStreet's Chris Nolter.
The parent of Time Warner, DirecTV and AT&T communications networks earned an adjusted 91 cents a share in the second quarter, topping analysts' estimates of 87 cents. Revenue in the quarter fell 2.1% from a year earlier to $39 billion and missed analysts' estimates.
"We've now assembled the key elements of a modern media company," Chairman and CEO Randall Stephenson said on a call with analysts after the earnings report was released on Tuesday. The CEO touted acquisitions such as Time Warner and ad-tech platform AppNexus.
Despite Stephenson's excitement, shares of AT&T dropped 1.2% to $31.30 in after-hours trading on Tuesday. The stock was down 1.3% in premarket trading on Wednesday.
3. -- Facebook Leads Wednesday's Earnings Charge
Coca-Cola Co. (KO) - Get Report earned 61 cents a share on an adjusted basis in the second quarter, beating estimates by 1 cent. Revenue fell 8% to $8.9 billion but topped analysts' forecasts. Shares rose 0.3%.
General Motors Co. (GM) - Get Report posted adjusted profit in the second quarter of $1.81 a share, beating estimates by 3 cents. Revenue fell 3.1% to $36.8 billion. The automaker said it expects adjusted earnings in 2018 of $6 a share, below estimates of $6.42.
Boeing Co. (BA) - Get Report posted second-quarter adjusted earnings of $3.33 a share, higher than estimates of $3.25. Revenue of $24.26 billion topped forecasts of $24.04 billion. The aerospace giant raised its revenue outlook for the year to $97 billion to $99 billion.
4. -- Profit at Texas Instruments Rises 36%
The chipmaker on Tuesday reported second-quarter revenue of $4.02 billion and earnings of $1.40 a share. While revenue rose 9% year over year, per-share earnings, boosted by margin expansion, stock buybacks and a lower tax rate, rose 36%.
Those numbers had already been disclosed last week, when Texas Instruments announced that recently appointed CEO Brian Crutcher had resigned due to unspecified code of conduct violations.
The company said it expects third-quarter earnings of $1.41 to $1.63 a share on revenue of $4.11 billion to $4.45 billion. Analysts had been calling for earnings of $1.49 a share on revenue of $4.27 billion.
5. -- One Winner Takes Home $522M Mega Millions Prize
A single ticket sold in San Jose won the Mega Millions drawing on Tuesday, matching all six numbers and giving the winner an estimated prize of $522 million, or a one-time cash option of $308 million.
It was the fifth largest jackpot in Mega Millions history.
The winning numbers: 1, 2, 4, 19 and 29, with the Mega Ball number 20.
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