U.S. stock futures are lower in pre-market trading for Wednesday, May 11. The Dow Futures are down -56.00 points to 17,797.0. The S&P 500 Futures are down -5.00 points to 2,072.5. The Nasdaq Futures are lower at 4,381.75 for a loss of -10.25 points. The Russell Futures are showing a loss of -3.20 points at 1,123.1.

In overnight trading in the Eastern Hemisphere, Asian markets traded flat and Europe indexes are down. In Asia, the Shanghai Composite was up 5.04 points or 0.18 percent to close at 2,837.63. Japan’s Nikkei was up 13.82 points or 0.08 percent to 16,579.01. In Hong Kong the Hang Seng Index is down -187.39 points or -0.93 percent to 20,055.29.

In Europe the Stoxx Europe 600 is down -2.64 points to -0.79 percent at 333.60. The FTSE 100 is down -11.29 points or -0.18 percent to 6,145.36. The FTSE 250 is down -28.71 points to -0.17 percent at 16,695.71. Germany’s DAX is down -94.24 points or -0.94 percent to 9,951.20. France’s CAC 40 is down -48.03 points or -1.11 percent to 4,290.18. The Europe Dow is down -11.17 points or -0.72 percent to 1,538.56.

Source: CNBC

Wednesday’s Factors and Events

In the Dow Jones Industrial Average Tuesday, Disney reported its second quarter earnings after the closing bell. The company reported its first earnings miss in two years which could weigh on the market’s open. Revenue for the second quarter was $12.97 billion, missing analysts’ expectations by $220 million. Revenue was up 4.1 percent from the comparable quarter. Earnings per share were $1.36, missing analysts’ expectations by $0.04. Shares of the stock are trading down 6 percent in pre-market trading.

On the calendar for Wednesday is the EIA weekly petroleum status report which will likely have an effect on the market’s perception of oil prices. The Treasury Budget report and 10-year note auctions will occur. Also today, the Mortgage Bankers Association will report its mortgage applications which have been trending down as interest rates are steadily rising.

Market indexes in the U.S. are likely to continue trading flat to lower as investors continue to watch economic indicators closely for direction on the Federal Reserve’s next move. Given the recent downtrend in economic data it seems the Fed will delay a June rate increase until later in the year which keeps rates at 0.25 percent to 0.50 percent for longer.

Tuesday’s Activity

On Tuesday the Dow Jones Industrial Average gained 222.44 points or 1.26 percent to close at 17,928.35. The S&P 500 was up 25.69 points or 1.25 percent to close at 2,084.38. The Nasdaq Composite gained 59.67 points or 1.26 percent to close at 4,809.88.

Other notable index closes included the small-cap Russell 2000 closing at 1,128.83 for a gain of 10.58 points or 0.95 percent; the S&P 600 closing at 693.32 for a gain of 5.45 points or 0.79 percent; the S&P 400 Mid-Cap Index which closed at 1,469.73 for a gain of 16.61 points or 1.14 percent; the Russell 3000 which closed at 1,226.51 for a gain of 14.90 points or 1.23 percent; and the Dow Jones U.S. Select Dividend Index which closed at 590.62 for a gain of 6.02 points or 1.03 percent.

In the Dow Jones Industrial Average Tuesday the top five gainers were Goldman Sachs, Caterpillar, United Technologies, General Electric and Boeing. Top sectors for the broad market were energy and industrials. Stock sectors falling were healthcare and utilities.