Here are five things you must know for Wednesday, July 24:
1. -- Stock Futures Lower as U.S.-China Trade Talks Set to Resume
U.S. stock futures pointed to a lower open for Wall Street on Wednesday while Asian shares rose cautiously amid optimism over the resumption of U.S.-China trade talks.
Contracts tied to the Dow Jones Industrial Average declined 63 points, futures for the S&P 500 fell 9 points, and Nasdaq futures slumped 48 points.
Bloomberg reported that trade talks between the world's two largest economies would begin next week. U.S. Trade Representative Robert Lighthizer will lead the U.S. delegation to Shanghai for talks that are expected to start Monday.
Trade negotiations have been on pause since June, after Donald Trump and Chinese President Xi Jinping agreed at the G-20 meeting to resume talks.
"While the resumption of trade talks appears to mitigate any near-term deterioration in U.S.-China tensions, prudent investors will not get carried away, seeing as a meaningful deal still seems a long way off," said Han Tan of FXTM.
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 19 at 10:30 a.m.
2. -- Tesla, Boeing, Facebook, Ford, Caterpillar to Report Earnings
AT&T (T) posted adjusted earnings in the second quarter of 89 cents a share, meeting analysts' estimates. Revenue in the quarter rose 15% to $45 billion.
Earnings reports are also expected Wednesday from Tesla (TSLA) , Boeing (BA) , Facebook (FB) , Ford (F) , Caterpillar (CAT) , Celgene (CELG) , Allergan (AGN) , PayPal (PYPL) , Northrop Grumman (NOC) , General Dynamics (GD) , Norfolk Southern (NSC) , Xilinx (XLNX) and United Parcel Service (UPS) .
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3. -- Justice Department Launches Antitrust Review of Big Tech
Shares of Alphabet (GOOGL) , Amazon.com (AMZN) , Facebook and Apple (AAPL) declined in premarket trading Wednesday after the Department of Justice launched a new probe into whether the online industry giants have been stifling competition.
Justice Department antitrust regulators are "reviewing whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers," according to a statement.
"Without the discipline of meaningful market-based competition, digital platforms may act in ways that are not responsive to consumer demands," said Assistant Attorney General Makan Delrahim of the DOJ's antitrust division in the statement.
The department intends to "assess the competitive conditions in the online marketplace in an objective and fair-minded manner," according to the statement. "If violations of law are identified, the Department will proceed appropriately to seek redress," it concluded.
Meanwhile, the Securities and Exchange Commission is expected to announce Wednesday it has reached a settlement with Facebook over claims it failed to adequately disclose risks related to its privacy practices, and that the agreement will include a fine of more than $100 million, according to The Wall Street Journal.
News of the SEC deal came amid reports that Facebook and the Federal Trade Commission have reached a settlement over the company's privacy violations, and the terms are more than just monetary. The social media giant will pay a penalty of $5 billion, according to Reuters. The settlement also mandates that Facebook establish a board committee to oversee privacy issues at the company, which includes "executive certifications" of proper oversight.
4. -- Snap Soars as User Growth Beats Expectations
Shares of Snap (SNAP) were jumping 10.92% in premarket trading on Wednesday to $16.45 after the social media company posted a second-quarter loss narrower than analysts' estimates and user growth topped expectations.
The adjusted loss in the quarter was 6 cents a share, narrower than a loss of 14 cents a share a year earlier and forecasts of 10 cents a share. Revenue in the quarter soared 48% to $388 million from $262 million a year earlier and ahead of Wall Street forecasts of $359.6 million.
Snap said it had 203 million daily-active users in the second quarter vs. estimates of almost 192 million.
Snap also said average revenue per user jumped 37% to $1.91. North American ARPU soared 42% to $3.14.
"The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months," said CEO Evan Spiegel. "We look forward to building on our momentum and making significant ongoing progress in each of these areas."
For the third quarter, the company expects revenue to jump to between $410 million and $435 million, up from $298 million a year earlier. Analysts were expecting revenue of $402.9 million for the quarter.
Snap said it expects third-quarter daily active users of between 205 million to 207 million, higher than analysts' estimates.
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5. -- Chipotle Jumps as Earnings Top Estimates, Digital Sales Nearly Double
Fast-casual burrito chain Chipotle Mexican Grill (CMG) rose 2.92% in premarket trading to $761.20 after posting second-quarter earnings and sales that exceeded analysts' estimates.
Adjusted earnings in the period were $3.99 a share, up from $2.87 a year earlier, as revenue climbed 13% to $1.43 billion. Digital sales jumped 99.1% and represented 18.2% of sales..
Analysts had predicted quarterly earnings of $3.74 a share on sales of $1.41 billion.
Comparable-restaurant sales in the period rose 10%, beating estimates of up 8.2%. Chipotle said operating margins rose to 20.9% from 19.7% a year earlier,
"We're pleased with our financial performance, which marks the sixth consecutive quarter of accelerating comps and reflects continued progress on our key strategic initiatives," said CEO Brian Niccol. "These strong results were delivered despite a tougher year over year comparison and benefited from better restaurant operations, more effective marketing, and leveraging our digital make line to grow sales and expand access."
The company also raised its outlook for full-year same-store sales, saying it expects sales to rise in the high-single digits.