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.
"China wants to make a deal very badly," Trump said. "It is me right now that is holding up the deal. And we're going to either do a great deal with China or we're not going to do a deal."
Trump also complained that the Federal Reserve had raised rates "way too high" and that the central bank had "no clue" what it was doing.
In economic news, the Consumer Price Index, a key inflation gauge, rose by just 0.1% in May, representing a slowdown from April's pace of 0.3%, the Labor Department said. The May rate was in line with economists' expectations, based on a survey by FactSet.
"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.
Tesla (TSLA) - Get Report shares were off 3.6% to to $209.26 after founder and CEO Elon Musk suggested the carmaker could have a record quarter of deliveries and insisted the was "not a demand problem" for the flagship Model 3. Tesla is Real Money's Stock of the Day.
Facebook (FB) - Get Report shares fell 1.7% to $175.04 following a report that suggested CEO Mark Zuckerberg was aware of privacy issues at the social media giant linked to the Cambridge Analytica data scandal.
Medidata Solutions (MDSO) - Get Report shares fell 3.6% to $91.37 after the life sciences software company agreed to a takeover offer from France's Dassault Systemes SE at a discount to its current market value.
Shares Dave & Buster's Entertainment (PLAY) - Get Report sank 22.4% to $40 after the restaurant chain reported fiscal first-quarter earnings and sales below estimates and issued fiscal-year guidance lower than its previous forecasts.
Raytheon (RTN) - Get Report and United Technologies (UTX) - Get Report shares went in different directions after William Ackman, who runs the activist hedge fund Pershing Square Capital Management LP, reportedly set plans to oppose their planned $120 billion merger. Raytheon was off slightly to $177, while United Technologies rose nearly 1% to $124.07.
Shares of Beyond Meat (BYND) - Get Report 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."