Premarket: 7 things to know before the bell
1. Investment restrictions: The White House is expected to announce new investment restrictions on Wednesday.
The United States has long accused China of intellectual property theft, which it says has cost the US economy billions of dollars in revenue and thousands of jobs.
The Trump administration announced tariffs on $ 50 billion of Chinese goods over the issue, some of which are set to go into effect next month. Now it’s looking into potentially restricting Chinese investment into some industries and technologies.
The Chinese yuan lost ground against the dollar on Wednesday. The benchmark Shanghai Composite shed 1.1%, dropping further into bear market territory.
2. Oil jumps on Iran: US crude futures increased 0.4% on Wednesday to trade at $ 70.80 per barrel.
Prices jumped by over 3.5% on Tuesday after the US State Department said it expects all countries to end imports of Iranian oil by November 4.
The news suggests the Trump administration is holding a hard line as it withdraws from the 2015 Iran nuclear agreement under which Iran rolled back its nuclear program in exchange for broad sanctions relief.
A new report on US crude inventories will be released at 10:30 a.m. ET.
3. Financial health check: The Bank of England will publish its Financial Stability Report on Wednesday, offering its views on risks to the UK financial system.
Central bank governor Mark Carney will speak about the report at 6:00 a.m. ET.
4. GE spikes: Shares in General Electric jumped 8% on Tuesday, the biggest gain in three years, after the company announced plans to sell off more businesses.
Cash-strapped GE (GE) said Tuesday it will spin off its health care business and sell its stake in oil and gas company Baker Hughes (BHGE).
The announcement came on the same day that GE was removed from the Dow Jones Industrial Average, ending its 110-year run in the elite 30-stock index.
5. Global market overview: US stock futures were lower.
European markets opened down, following a negative trading session in Asia.
The Dow closed 0.1% higher on Tuesday. The S&P 500 gained 0.2% and the Nasdaq added 0.4%.
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6. Earnings and economics: General Mills (GIS) will release earnings before the open. Bed Bath & Beyond (BBBY), Pier 1 Imports (PIR) and Rite Aid (RAD) will follow after the close.
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7. Coming this week:
Wednesday — Bed Bath & Beyond (BBBY), General Mills (GIS), Rite Aid (RAD) earnings
Thursday — Nike (NKE), Walgreens Boots Alliance earnings; Foxconn (TPE) breaks ground in Wisconsin; Stress test results
Friday — University of Michigan Consumer Sentiment report, US inflation data
