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10 things you need to know before the opening bell

Mar 6, 2019, 17:24 IST

A military band member rehearses for the opening session of the National People's Congress (NPC) at the Great Hall of the People in Beijing, China.Reuters/Jason Lee

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Here is what you need to know.

The OECD trims its global growth forecast. The Organization for Economic Cooperation and Development on Wednesday cut its global growth forecast from 3.5% to 3.3%, saying the global economy is "facing increasingly serious headwinds."

The federal deficit balloons. The defiict hit $310 billion during the first four months of fiscal year 2019 - up 77% versus a year ago, Treasury Department data released Tuesday showed.

Chinese stocks rally to 9-month highs. China's Shanghai Composite rallied 1.6% Wednesday to its highest level since June after Beijing promised trade-secret protection for foreign companies.

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3 charts pour cold water on a recession. Jim Paulsen, the chief investment officer at Leuthold Group, recently put out a report explaining why recession fears are overblown.

Nissan's former chairman is out on bail. Carlos Ghosn was set free from a Japanese jail Wednesday after posting a bail of 1 billion yen ($8.9 million). He was in custody for 108 days.

Tesla's bull case is on shaky ground. "Much of the bull narrative has rested on Tesla being the next Apple, selling high-volume EVs at premium price point and at high gross margins, in part aided by a unique branded retail presence - a narrative we see as undermined by the recent price cuts and closing of most of the stores," Barclays analyst Brian Johnson wrote Tuesday.

Wall Street is piling on Deutsche Bank. Thirty one of 32 analysts who cover the stock have a "hold" or "sell" rating, Bloomberg data shows.

Investors were gushing about one thing from Salesforce's earnings. The software provider said Mulesoft, which a year ago it acquired for $6.5 billion, contributed $181 million of revenue in the fourth quarter months after Salesforce had predicted it would contribute $375 million of revenue for the entire fiscal year.

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Earnings reporting remains heavy. Abercrombie & Fitch, BJ's Wholesale, and Dollar Tree report ahead of the opening bell while American Eagle releases its quarterly results after markets close.

US economic data keeps coming. ADP Employment Change will be released at 8:15 a.m. ET and the trade balance will cross the wires at 8:30 a.m. ET. The Fed's Beige Book is due out at 2 p.m. ET. The US 10-year yield was little changed near 2.71%.

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