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10 things you need to know before the opening bell

May 3, 2018, 16:11 IST

Fans set off flares in the stand.Reuters/Agencja Gazeta

Here is what you need to know.

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US trade delegates arrive in China in a bid to negotiate an unlikely trade breakthrough. The discussions, led by US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He, are expected to cover a wide range of US complaints about China's trade practices, Reuters reports.

The Fed holds. The Federal Open Market Committee on Wednesday held its key interest in a range between 1.5% and 1.75% and confirmed inflation is near its 2% target.

Housing prices along China's border with North Korea have skyrocketed since Kim Jong Un's visit to Beijing. Some home prices in the border city of Dandong, China have doubled since North Korean leader Kim Jong Un visited Beijing in March, according to state-run outlet Global Times.

A Wall Street chief strategist breaks down the story he says the market is ignoring. Peter Cecchini, chief market strategist and head of equity derivatives at Cantor Fitzgerald, told Business Insider traders are disproportionately focused on one market catalyst that's overshadowing other important drivers.

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Tesla says its days of burning cash are coming to an end as it reports another loss. The electric-car maker reported an adjusted loss of $3.35 a share on revenue of $3.41 billion, and said it aimed to achieve profitability and a positive cash flow by the third and fourth quarters.

Spotify misses big on the bottom line. The streaming-music company posted a loss of 1.01 euros ($1.21) a share, missing the Wall Street consensus of a 0.23 euro loss by a wide margin.

Subway's CEO is stepping down. Suzanne Greco, who is the sister of the chain's late co-founder, Fred DeLuca, announced Wednesday she is retiring as CEO. Subway lost more than 900 US locations last year and another 500 are expected to close in 2018.

Stock markets around the world are lower. Hong Kong's Hang Seng (-1.34%) lagged in Asia and Germany's DAX (-0.33%) trails in Europe. The S&P 500 is set to open little changed near 2,635.

Earnings reports keep coming. DowDuPont, Ferrari, and the New York Times report ahead of the opening bell while Activision Blizzard, GoPro, Shake Shack, and Wingstop release their quarterly results after markets close.

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US economic data is heavy. Initial claims and the trade balance will both be released at 8:30 a.m. ET before Markit US Services PMI crosses the wires at 9:45 a.m. ET. Data concludes at 10 a.m. ET with ISM nonmanufacturing, durable goods, and factory orders. The US 10-year yield is down 2 basis points at 2.95%.

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