Here are five things you must know for Wednesday, April 17:
1. -- Stock Futures Point to a Second Day of Gains for Wall Street
U.S. stock futures rose Wednesday, following on from Tuesday's gains that were spurred by generally solid earnings reports, especially from the financial sector.
Contracts tied to the Dow Jones Industrial Average rose 28 points, futures for the S&P 500 gained 5.85 points, and Nasdaq futures were up 23 points.
PepsiCo (PEP) - Get Report posted stronger-than-expected first-quarter earnings after recording the fastest pace of organic sales growth in more than three years. The stock rose 2.4% in premarket trading.
Earnings are also expected Wednesday from Alcoa (AA) - Get Report , Abbott Laboratories (ABT) - Get Report , U.S. Bancorp (USB) - Get Report , Bank of New York Mellon (BK) - Get Report , Las Vegas Sands (LVS) - Get Report and Textron (TXT) - Get Report .
The economic calendar in the U.S. Wednesday includes International Trade for February at 8:30 a.m. ET, Wholesale Trade for February at 10 a.m., and the Federal Reserve's "Beige Book" at 2 p.m.
Stocks in Asia closed Wednesday's session mostly to the upside after China announced that the world's second-largest economy grew at a 6.4% annual pace in the January-March quarter.
2. -- Qualcomm Surges After Ending Dispute With Apple
Qualcomm (QCOM) - Get Report was rising 9.9% in premarket trading Wednesday to $77.40 after the chipmaker ended its long-running dispute with Apple (AAPL) - Get Report over royalty payments for Qualcomm's smartphone equipment.
Qualcomm shares jumped 23.2% on Tuesday after the settlement was announced.
The settlement ends all litigation between the two companies and includes an unspecified payment from Apple to Qualcomm, according to a press release issued by Apple following the settlement.
As part of the settlement, Apple and Qualcomm also reached a six-year license agreement, effective as of April 1, including a two-year option to extend, and a "multiyear chipset supply agreement." That could mean that Apple is returning to using Qualcomm as its supplier for modem chips after switching to Intel (INTC) - Get Report when the dispute with Qualcomm began.
Intel announced Tuesday that it was dropping out of the 5G modem business, just hours after Qualcomm and Apple announced their settlement.
Qualcomm said that the deal with Apple will add about $2 in "incremental EPS" as its chip shipments ramp up.
Apple rose 0.3% in premarket trading to $199.79.
3. -- Netflix's Second-Quarter Forecast Disappoints
Streaming giant Netflix (NFLX) - Get Report said it added 9.6 million paid streaming subscribers in the first quarter, beating guidance of 8.9 million, but its outlook for the second quarter disappointed and the stock fell 1.1% in premarket trading Wednesday.
First-quarter earnings of 76 cents a share rose from year-earlier profit of 64 cents. Revenue jumped to $4.5 billion from $3.7 billion a year earlier.
Analysts were forecasting earnings of 58 cents a share on revenue of $4.5 billion.
Netflix said it expects to add 5 million paid subscribers in the second quarter, an 8% decline from a year earlier, with 300,000 new subscribers in the U.S. and 4.7 million new subscribers internationally. Analysts were calling for 5.5 million paid new subscribers. In addition, Netflix said its expects revenue in the quarter of $4.93 billion, slightly below consensus, while earnings were forecast at 55 cents a share, well below expectations of 99 cents.
The company said it expects to see "some modest short-term churn effect as members consent" to the company's recently announced price changes. While U.S. net adds were seemingly unaffected by the change, the international market may be less forgiving.
To combat this, the company said it was "looking forward to a strong slate of global content in the second half of the year."
- Netflix Delivers Mixed Subscriber Numbers: 10 Key Takeaways
- Netflix Isn't Afraid of Disney or Apple -- Here's Why
4. -- Sprint and T-Mobile Slide After Report Says Merger Hitting Resistance
Shares of Sprint (S) - Get Report declined 5.2% in premarket trading and T-Mobile US (TMUS) - Get Report tumbled 4.2% following a report that suggested the Justice Department wouldn't approve the merger of the telecommunications giants as currently structured.
Justice Department officials are balking at approving the $26.5 billion acquisition of Sprint by T-Mobile over antitrust concerns, The Wall Street Journal reported, citing people familiar with the matter.
In a meeting earlier this month, Justice Department staff members laid out their concerns with the all-stock deal and questioned the companies' arguments that the combination would produce important efficiencies for the merged company, the people told the Journal.
T-Mobile CEO John Legere responded to Journal article in a tweet, saying, "The premise of this story, as summarized in the first paragraph, is simply untrue. Out of respect for the process, we have no further comment."
5. -- IBM Tumbles After First-Quarter Revenue Misses Forecasts
International Business Machines (IBM) - Get Report fell 3.6% in premarket trading Wednesday to $141.50 after the tech giant's adjusted earnings in the first quarter beat expectations but revenue fell shy of Wall Street's expectations.
IBM earned $2.25 a share on an adjusted basis in the quarter as revenue fell to $18.18 billion from $19.07 billion a year earlier.
Analysts had expected earnings of $2.22 a share on revenue of $18.47 billion.
IBM said revenue in its Global Technology Services segment fell 7% to $6.88 billion, while revenue in the company's Cloud & Cognitive Software segment declined 1.5% to $5.04 billion.
IBM said it expects adjusted earnings for the fiscal year of "at least $13.90" a share, 1 cent below forecasts.