Here are five things you must know for Wednesday, Jan. 31:

1. -- Dow Set for a Rebound

U.S. stock futures suggested Wall Street was poised for a rebound on Wednesday, Jan. 31, following the biggest two-day decline on Wall Street in more than two year.

Stocks dropped sharply on Tuesday, Jan. 30, with the Dow Jones Industrial Average tumbling by 362 points, or 1.37%, to 26,076 after healthcare and energy stocks took it on the chin. The S&P 500 dropped 1.09% while the Nasdaq declined 0.86%.

Futures contracts tied to the blue-chip index gained 100 points early Wednesday, while those tied to the broader S&P 500 rose 10.25 points.

The Federal Reserve isn't expected to raise interest rates at its meeting Wednesday but economists do expect the central bank to lift rates when it next meets in March. An announcement on interest rates is expected Wednesday at 2 p.m. ET. The meeting is Fed Chair Janet Yellen's last.

Analysts at BofA Merrill Lynch Global Research said the Fed is likely "to send a modestly hawkish signal," as officials "become more convinced of the shift from the disinflation of 2017 and emphasize the momentum in the real economy." 

Eli Lilly & Co. (LLY) posted fourth-quarter adjusted earnings of $1.14 a share, 7 cents ahead of estimates. The stock rose 1.9% in premarket trading.

Boeing Co. (BA) posted adjusted earnings in the fourth quarter of $3.06 a share vs. Wall Street estimates of $2.89. Revenue in the quarter of $25.37 billion topped forecasts of $24.64 billion. The aerospace giant also provided upbeat guidance for 2018. Shares rose 3.2% in premarket trading.

Earnings are also expected Wednesday from AT&T Inc. (T) , Facebook Inc. (FB) , Microsoft Corp. (MSFT) , Qualcomm Inc.  (QCOM) , eBay Inc. (EBAY)  and U.S. Steel Corp. (X)  .

Facebook, Microsoft and Eli Lilly are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells the stocks? Learn more now.

Besides the announcement from the Federal Reserve on interest rates, the economic calendar in the U.S. on Wednesday includes the ADP National Employment Report for January at 8:15 a.m., Chicago PMI for January at 9:45 a.m., the Pending Home Sales Index for December at 10 a.m. and Oil Inventories for the week ended Jan. 26, at 10:30 a.m. 

If you'd like to receive the free "5 Things You Must Know" newsletter, please register here.   

2. -- Trump Touts the Economy

Donald Trump delivered his first State of the Union address on Tuesday, Jan. 30, covering immigration, infrastructure, foreign policy and the booming economy.

It was one of the longest State of the Union addresses on record, at about one hour and 20 minutes.
 
Trump devoted significant time to touting the new tax law he signed in December, promising the plan will "provide tremendous relief for the middle class and small businesses." He also highlighted a decision he made early in his first year to withdraw the U.S. from a sweeping Asia-Pacific trade pact, declaring: "The era of economic surrender is totally over."

Trump called for $1.5 trillion in new infrastructure spending and partnerships with states and the private sector. 

"There are a lot of reasons why you hate Trump," said David Nelson, chief strategist at Belpointe, "but the economy is not one of them."

3. -- AMD Earnings Beat Estimates

Advanced Micro Devices Inc. ( AMD)  shares were up 2.8% in premarket trading on Wednesday after the chipmaker beat fourth-quarter earnings and sales estimates.

AMD reported adjusted earnings of 8 cents a share, 3 cents above estimates, on revenue of $1.48 billion, which beat forecasts of $1.41 billion. Full-year revenue rose nearly 25% to $5.33 billion.

The company's computing and graphics segment saw revenue rise 60% year over year to $958 million, well above consensus of $863 million.

AMD shares have risen more than 25% so far this year, following a weak 2017 when the stock fell 9%.

4. -- Fujifilm to Take Over Xerox

Fujifilm Holdings Corp. ( FUJIF) reached an agreement with document company Xerox Corp. ( XRX) to combine the company and their longstanding Fuji Xerox joint venture, following pressure from activist investor Carl Icahn. Fujifilm also said it would cut 10,000 jobs globally at the joint venture to cut costs.

Under terms of the deal, Fujifilm will own 50.1% of Xerox shares, and combine Xerox with Fuji Xerox, their joint venture that is 75% owned by Fujifilm.

Xerox shares rose 4% in premarket trading.

Xerox shareholders will receive a $2.5 billion special cash dividend, or about $9.80 a share, funded from the combined company's balance sheet, and own 49.9% of the combined company at closing. The cash dividend represents a 30% premium to Xerox's unaffected share price of $30.35 on Jan. 10 before reports of a possible deal surfaced.

The combined company will be named Fuji Xerox and trade on the New York Stock Exchange under ticker symbol "XRX."

Icahn and fellow large shareholder Darwin Deason in mid-January called for Xerox to evaluate strategic options related to the joint venture. Icahn and Deason also agreed to work together to install a minority slate of four director candidates to Xerox's board in an effort Icahn already had been pursuing to oust Xerox CEO Jeff Jacobson.

5. -- Apple Set for a Third Down Day

Shares of Apple Inc. (AAPL)  looked set to decline for a third consecutive session as the world's biggest tech company continues to suffer from concerns that disappointing sales of its flagship iPhone X will hit the company's first-quarter earnings when they are released on Thursday, Feb. 1

Apple also is reportedly in the crosshairs of both the U.S. Department of Justice and Securities Exchange Commission over its handling of information related to the slowing of older iPhone models during a comprehensive software update last year. According to Bloomberg, Apple has been asked to provide details regarding the update while officials look into public statements made by the Cupertino, Calif.-based company during the uproar that followed the software release.

Apple shares were down 0.5% in premarket trading to $166.20.

This article has been updated to include earnings from Boeing.

More of What's Trending on TheStreet:

 

 
 
 

 

More from Futures

Big Banks Pass the Stress Tests and 4 Other Stories to Watch Friday Morning

Big Banks Pass the Stress Tests and 4 Other Stories to Watch Friday Morning

Futures Fall on Further Trade Rhetoric from China and 4 Other Stories to Watch

Futures Fall on Further Trade Rhetoric from China and 4 Other Stories to Watch

GE Loses Its Spot on the Dow and 4 Other Stories to Watch Wednesday Morning

GE Loses Its Spot on the Dow and 4 Other Stories to Watch Wednesday Morning

Trump Threatens More Tariffs and 4 Other Stories to Watch Tuesday Morning

Trump Threatens More Tariffs and 4 Other Stories to Watch Tuesday Morning

Google Invests $550 Million in JD.com and 4 Other Stories to Watch Monday

Google Invests $550 Million in JD.com and 4 Other Stories to Watch Monday