In the latest pre-market activity on Wednesday, US benchmark equity indexes were showing signs of decline as investors positioned themselves ahead of critical quarterly results from significant companies. The Standard & Poor's 500 index slipped by 0.2%, while the Nasdaq saw a decline of 0.4%. The Dow Jones Industrial Average experienced a slight downturn of 0.5% before the opening bell.
Amidst this, Asian markets were predominantly on an upward trajectory, contrasting with the downward trends observed in the majority of European exchanges. Today, a number of high-profile companies are set to unveil their financial results early Wednesday, including Coca-Cola, Thermo Fisher Scientific, NextEra Energy, AT&T, Boston Scientific, Boeing, General Dynamics, GE Vernova, and Hilton Worldwide, among others. Later in the day, electric vehicle manufacturer Tesla, T-Mobile US, International Business Machines, ServiceNow, and O'Reilly Automotive are on the schedule to report earnings after the markets close, heightening investor anticipation regarding their performance. In a concerning development, shares of McDonald's saw a notable drop of 7.4% in pre-market trading following reports that US health authorities are investigating an E.
coli outbreak linked to the fast-food giant's Quarter Pounder burgers, raising red flags over consumer safety and its potential impact on sales. Similarly, Starbucks experienced a decline of 4.9% as it released disappointing preliminary fiscal fourth-quarter results and suspended its full-year 2025 guidance, further illustrating the challenges facing major food and beverage companies. Additionally, Qualcomm's stock dropped by 4.7% after media reports surfaced stating that ARM Holdings has canceled its architectural license agreement with the company, a move that could have significant implications for Qualcomm’s future prospects in the tech industry. As for the economic calendar, traders are keeping a close watch on several key indicators.
The weekly mortgage applications bulletin is anticipated at 7 am ET, followed by existing home sales data for September and the Atlanta Fed Business Inflation Expectations report for October, scheduled for 10 am. The weekly EIA domestic petroleum inventories report is due to be released at 10:30 am. Investors will also be looking out for the Beige Book, a comprehensive aggregation of economic and business insights from the 12 regional Federal Reserve branches, which will be published at 2 pm.
Fed Governor Michelle Bowman is slated to provide commentary on the market landscape at 9 am, with Richmond Fed President Thomas Barkin scheduled to speak at 12 pm. In the broader market context, pre-market activity indicated a decline in bitcoin by 1.5%, which settled at $66,493, while West Texas Intermediate crude oil prices retreated by 1.9%, priced at $70.41 a barrel.
Meanwhile, yields on 10-year Treasuries rose by 1.6 basis points to 4.22%, and gold prices experienced a slight uptick, edging 0.2% higher to $2,766 per ounce. Overall, investors are navigating a complex economic landscape characterized by critical earnings reports and significant economic data releases, setting the stage for potential market volatility in the days ahead..