Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average ended lower for the second straight session Wednesday as optimism over a near-term trade deal with China faded.
- Tesla (TSLA - Get Report) shares declined after founder and CEO Elon Musk suggested the carmaker could have a record quarter of deliveries but said that profitability was hard for companies growing as fast as Tesla. Tesla is Real Money's Stock of the Day.
- Dave & Buster's Entertainment (PLAY - Get Report) sank after the restaurant chain reported fiscal first-quarter earnings and sales below estimates and issued fiscal-year guidance lower than its previous forecasts.
Wall Street Overview
Stocks finished lower for the second straight session Wednesday as investors' optimism about a near-term trade deal between the U.S. and China faded.
The Dow Jones Industrial Average fell 44 points, or 0.17%, to 26,005, the S&P 500 declined 0.20%, and the Nasdaq fell 0.38%. Semiconductor stocks, such as Lam Research (LRCX - Get Report) , led the Nasdaq lower.
President Donald Trump said Tuesday he wouldn't agree to a trade deal unless China agrees to four or five "major points" that the president didn't specify.
"This morning's inflation data adds more fuel to the rate cut fire and increasingly supports the Fed's dovish stance," said Mike Loewengart, vice president of investment strategy at E*Trade. "We could likely see the markets react well to this news. While we are experiencing pockets of weakness on the jobs front, the big takeaway for investors ... is that economic fundamentals are still quite strong and there continues to be reasons to be optimistic about the state of our economy-sure growth is slowing, but that does not mean its shrinking. It will be interesting to see how jobs and inflation inform Friday's retail read."
Global oil prices extended declines after the U.S. Energy Information Administration reported a much larger-than-expected increase in domestic crude inventories. Brent crude contracts for August delivery, the global benchmark, were down 4% to $59.80 a barrel, while West Texas Intermediate crude contracts for July were down 4.2% to $51.01.
Shares of Beyond Meat (BYND) jumped 12.6% to $141.97 after the company announced Canadian coffee chain Tim Hortons said it was now offering breakfast sandwiches made with Beyond Meat products at almost 4,000 locations. Tim Hortons is a subsidiary of Restaurant Brands International (QSR - Get Report) .
Beyond Meat also received a second downgrade in as many days on Wednesday, this time from analysts at Sanford Bernstein, who lowered their rating on the stock to market perform from outperform on "valuation considerations."