Here Are 3 Hot Things to Know About Stocks Right Now

  • The Dow Jones Industrial Average gave up slim gains on Wednesday after closing with gains for three consecutive sessions. The S&P 500 ended a five-day win streak.
  • General Motors Co. (GM) reported stronger-than-expected fourth-quarter earnings and confirmed its 2019 profit outlook. Shares rose 1.6%.
  • Walt Disney Co. (DIS)   fell 1.1% after the media giant's fiscal first-quarter earnings and revenue beat Wall Street estimates.

Wall Street Overview

Stocks traded lower on Wednesday, Feb. 6, as investors found little from Donald Trump's State of the Union Address to extend recent market gains amid worries that the lack of detail on progress in trade talks with China raises the risk the two sides will fail to reach an agreement by their self-imposed March 1 deadline.

"We are now making it clear to China that after years of targeting our industries, and stealing our intellectual property, the theft of American jobs and wealth has come to an end," Trump said in his speech Tuesday evening. "I have great respect for President Xi, and we are now working on a new trade deal with China. But it must include real, structural change to end unfair trade practices, reduce our chronic trade deficit, and protect American jobs."

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin reportedly will travel to Beijing next week to resume talks aimed at tackling alleged intellectual property theft, but with the deadline looming, the risk of tariffs on $250 billion worth of China-made goods - including clothes, shoes and consumer electronics - is suddenly a very real concern.

The Dow Jones Industrial Average fell 21 points, or 0.08%, to 25,390 after trading lower for most of Wednesday's session. The S&P 500 fell 0.22%, and the Nasdaq was down 0.36%.

General Motors Co. (GM) reported stronger-than-expected fourth-quarter earnings and confirmed its 2019 profit outlook. The stock rose 1.6%.

General Motors said earnings for the three months ended in December were $1.43 a share, down 13.3% from the same period last year but ahead of Wall Street consensus of $1.24. Revenue was $38.4 billion, a 1.8% increase that beat analysts' estimates of $36 billion.

The automaker also confirmed its full-year adjusted earnings range of between $6.50 and $6.70 a share, and said free cash flow from its core car business could come in between $4.5 billion and $6 billion.

Eli Lilly and Co. (LLY) posted weaker-than-expected fourth-quarter earnings and lowered its 2019 profit guidance to reflect the impact of its planned acquisition of Loxo Oncology Inc.  (LOXO) . The stock fell 1%.

Eli Lilly said earnings for the quarter were $1.33 a share, just shy of the consensus forecast of $1.34. Revenue was $6.44 billion, up nearly 4% from last year and ahead of the $6.28 billion forecast.

Looking into 2019, however, Eli Lilly said full-year earnings would be in the range of $5.55 to $5.65 a share on a non-GAAP basis, down from its previous forecast of between $5.90 and $6.10, thanks to the Loxo purchase and a negative phase 3 confirmatory trial for its Lartruvo treatment for rare soft tissue cancers.

Shares of Walt Disney Co. (DIS)  declined 1.1% on Wednesday after the media giant's fiscal first-quarter earnings and revenue beat Wall Street estimates.

Adjusted earnings in the quarter were $1.84 a share, better than forecasts of $1.55. Disney reported revenue of $15.3 billion, topping analysts' estimates of $15.05 billion.

Disney, which is buying the bulk of media assets from Twenty-First Century Fox Inc. (FOXA) in an effort to challenge online streaming services from Amazon.com Inc. (AMZN) and Netflix Inc. (NFLX) , said it will unveil its own digital offering, Disney+, at its investor day on April 11. The move to bring Disney content onto that platform, however, will mean foregoing licensing revenue earned from other providers, and likely will clip $150 million from Disney's operating income over the course of the year, the company told investors, with most of it weighted in the final two quarters.

Disney and Amazon.com are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells DIS or AMZN? Learn more now.

Snap Inc. (SNAP) , parent company of Snapchat, jumped 22% after the social media company's fourth-quarter loss was narrower than expected.

Snap posted an adjusted loss of 4 cents a share, narrower than Wall Street's call for a loss of 8 cents. The GAAP loss was 14 cents a share, narrower than estimates of a loss of 19 cents. Revenue in the quarter was $390 million, beating expectations of $377.5 million.

Snap reported daily active users of 186 million in the fourth quarter, flat with the previous quarter, and average revenue per user of $2.09 vs. analysts' expectations of 184.3 million users and average revenue per user of $2.05.

Snap said it expects revenue of between $285 million and $310 million in the first quarter, and said beta testing of its app for Android devices could significantly boost user growth in the coming year.

Electronic Arts Inc. (EA)  fell 13.3% after fiscal third-quarter sales for the video game company missed analysts' expectations.

Adjusted earnings in the quarter were $2.30 a share, above estimates of $1.94, but revenue of $1.29 billion missed Wall Street forecasts of $1.75 billion.

Net bookings in the quarter were $1.61 billion vs. analysts' expectations of $1.76 billion.

Fellow video game maker Take-Two Interactive Inc. (TTWO)   tumbled 13.8% after the company issued a weak fourth-quarter outlook.

Watch Wednesday's Show and All Cramer Replays Here: