Here are five things you must know for Wednesday, April 24:
1. -- Stock Futures Mixed as Wall Street Awaits Earnings From Microsoft and Facebook
U.S. stock futures were mixed on Wednesday, following record highs on Wall Street, as investors paused ahead of another wave of corporate earnings reports.
Contracts tied to the Dow Jones Industrial Average rose 17 points, futures for the S&P 500 were down 0.85 points, and Nasdaq futures rose fell 2 points.
The S&P 500 and the Nasdaq closed at record highs on Tuesday as solid earnings reports from a number of blue-chip companies buoyed investors on Wall Street.
As for Wednesday, broader market sentiment may find support from news that both U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will return to Beijing next week to re-start talks on a trade deal that has remained elusive since the self-imposed March 2 deadline came and went without a major breakthrough.
White House Economic Adviser Larry Kudlow told reporters at the National Press Club in Washington on Tuesday that he was "cautiously optimistic" about a trade deal, noting the U.S. has come "further and deeper, broader, larger-scale than anything in the history of U.S.-China trade."
Earnings reports are also expected Wednesday from Boeing (BA) - Get Report , Caterpillar (CAT) - Get Report , Microsoft (MSFT) - Get Report , Facebook (FB) - Get Report , American Airlines (AAL) - Get Report , Dunkin' Brands (DNKN) - Get Report , Biogen (BIIB) - Get Report , Norfolk Southern (NSC) - Get Report , General Dynamics (GD) - Get Report , Lam Research (LRCX) - Get Report , Domino's Pizza (DPZ) - Get Report , PayPal Holdings (PYPL) - Get Report , Tesla (TSLA) - Get Report and Visa (V) - Get Report .
The economic calendar in the U.S. Wednesday includes Oil Inventories for the week ended April 19, at 10:30 a.m. ET.
2. -- Snap Beats Expectations, Highlights New Android App
Quarterly revenue of $320 million rose 39% from a year earlier. The adjusted loss in the quarter was 10 cents a share.
Analysts were expecting Snap to report revenue of $306 million and a loss of 12 cents a share.
The company reported 190 million daily active users in the first quarter, a 2% increase sequentially, but a slight decline from the 191 million daily active users it had a year earlier.
For the second quarter, Snap said it expects revenue to increase between 28% and 37% year over year to between $335 million and $360 million. Wall Street was modeling $345 million in revenue in the period.
"In the first quarter we delivered strong results across our business with growth in daily active users and revenue," said CEO Evan Spiegel. "Our new Android application is available to everyone, with promising early results. This month we announced several new products that we believe will drive further engagement and monetization. As we look towards the future, we see many opportunities to increase our investments, and will continue to manage our business for long-term growth."
Snap's improved Android app, months in the making and intended to broaden its user base, was one of the main events on the company's first-quarter earnings call.
- Snap's Android App Comes Into Focus on First-Quarter Earnings Call
- Snap Surges as Android Improvements Driver User, Revenue Growth in First Quarter
3. -- Texas Instruments Falls After Casting Doubt on Chip Rebound
Shares of Texas Instruments (TXN) - Get Report fell 1.6% in premarket trading Wednesday after the chipmaker cautioned that a much-anticipated rebound in global semiconductor demand could be delayed into the early half of next year.
The company posted first-quarter earnings of $1.26 a share, which included a tax benefit of 4 cents a share on revenue of $3.59 billion. Wall Street was calling for earnings of $1.13 a share on revenue of $3.48 billion.
Texas Instruments said it expects second-quarter earnings of $1.12 to $1.32 a share on revenue of $3.46 billion to $3.74 billion; analysts forecast earnings of $1.23 a share on revenue of $3.66 billion.
However, the company's near-term outlook pressured shares as it cautioned that historical downturns in the semiconductor sector last between four and five quarters, a figure that would put the expected rebound in global demand into the early part of 2020, a forecast that contrasts with the second-half recovery that most sector rivals have been predicting since the start of the year.
"We believe that after 10 quarters of year-on-year growth, the weakness we are seeing is primarily due to the semiconductor cycle. We have just completed our second quarter of year-on-year declines for TI," Chief Financial Officer Richard Lizardi told investors on a conference call. "If you look at history, cycles are always different, but typically the industry would have four to five quarters of year-on-year declines before year-on-year growth resumes. We are not trying to forecast the cycle, but simply offer some historical perspective."
4. -- eBay Jumps on Earnings Beat and Raised Guidance
EBay (EBAY) - Get Report rose 4.2% in premarket trading Wednesday after the online marketplace posted adjusted first-quarter earnings that beat analysts' expectations and lifted its earnings and sales guidance for the year.
Adjusted earnings in the quarter were 67 cents a share on revenue of $2.6 billion, an increase of 2% from a year earlier. Analysts were calling for adjusted earnings of 63 cents a share on revenue of $2.58 billion.
EBay said it expects adjusted earnings in 2019 of $1.94 to $2.04 a share on revenue of $10.83 billion to $10.93 billion.
5. -- CBS Extends Contract for Acting CEO Ianniello
Ianniello was named chief operating officer in 2013. He served in that role until September 2018, when the company tapped him to take over while it searched for a replacement for chairman and CEO Les Moonves, who was ousted amid allegations of sexual misconduct.