© Reuters
Investing.com – U.S. stock futures edged lower on Wednesday ahead of the release of key economic data this week. Salesforce (NYSE:) is expected to post record quarterly revenue as analysts are eager to gauge the success of an artificial intelligence push at the software giant's data cloud division. Elon Musk says Tesla has completed the production design of its new Roadster, adding that the electric vehicle giant hopes to deliver the car in 2025.
1. Futures are trending downward
Stock futures pointed lower on Wall Street as investors awaited a slate of incoming U.S. economic data that could impact the timing of possible interest rate cuts by the Federal Reserve this year.
As of 3:12 a.m. ET (08:12 GMT), the contract had lost 60 points, or 0.2%, was down 7 points, or 0.1%, and was down 47 points, or 0.3%.
Major averages were mixed in the previous session, with particular attention focused on Thursday's release of the Personal Consumption Expenditure (PCE) Price Index, a key measure of inflation.
Traders have watched a stock market rally driven by rising enthusiasm for artificial intelligence applications that has pushed shares to record levels. However, as corporate profits slow, the focus is back on economic numbers and the possible direction of US borrowing costs.
While the overall economy showed resilience in the face of elevated interest rates, the easing of price pressures showed signs of abating – a trend that has led several Fed officials to say there is no rush to cut interest rates from more than two-decade highs.
2. Salesforce ahead
After a series of blockbuster reports from some of the biggest names in American companies in recent weeks, quarterly earnings season is starting to slow down.
Wednesday's releases will be highlighted by software giant Salesforce, which will present its latest results after the closing bell. Revenue is expected to rise to a record $9.22 billion, helping the California-based company return to a profit in the fourth quarter after posting a loss in the year-ago period due to restructuring costs had.
Salesforce's data cloud unit could also be in the spotlight, as analysts are eager to find out whether its push to increasingly integrate AI into its products and services has supported customer demand.
Elsewhere, off-price department store chain TJX Companies (NYSE:) and drugmaker Viatris will report ahead of market open.
3. Next-generation Tesla Roadster to be delivered in 2025 – Musk
Tesla (NASDAQ:) Chief Executive Elon Musk said Wednesday that the company has completed production design for a long-planned update to its Roadster electric sports car, adding that deliveries are expected to begin next year.
In a series of posts on the social media site X, which Musk also owns, he said that Tesla aims to unveil the Roadster by the end of 2024.
Musk said that Tesla has “radically increased the design goals” for the upcoming model, which was originally scheduled to launch in 2020. He also said that the new vehicle would be developed in collaboration with SpaceX.
4. Country Garden is facing a winding-up application
Hong Kong-listed Chinese real estate stocks fell on Wednesday, pressured by renewed worries about a property crisis after Country Garden (HK:2007) was hit with a liquidation application.
The troubled developer was the worst performer compared to its peers, sliding 6.7% and further into penny stock territory after Ever Credit Ltd filed a liquidation petition against the company over non-payment of a $1.6 billion loan in Hong Kong dollars.
Other real estate developers also fell in line sound China Holdings (HK:), Longfor Properties Co (HK:) and Logan Property Holdings (HK:) fell between 3% and 9%. The broader index fell 1.4%, mainly due to losses in the real estate sector.
Country Garden Services Holdings (HK:) – a unit of the embattled developer – was the worst performer on Hang Seng, with a loss of 4.6%.
5. Oil slips
Oil prices fell slightly in European trading on Wednesday, with traders eyeing a massive weekly rise in U.S. inventories and a possible ceasefire between Israel and Hamas.
Prices posted strong gains from the previous session after media reports suggested the Organization of the Petroleum Exporting Countries and its allies – a group called OPEC+ – could maintain their current pace of supply cuts until the end of 2024, leaving global supplies limited.
However, crude oil prices still remained within the $75-$85 trading range set so far in 2024 as optimism over OPEC+ reports was countered by industry data showing a massive increase in U.S. oil inventories.
April crude oil futures fell 0.5% to $83.20 a barrel, while West Texas Intermediate crude futures fell 0.6% to $78.44 a barrel at 3:15 a.m. ET.
Crude oil prices also came under pressure from dollar strength as markets geared up for PCE price index data this week.
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