In the previous session, the Dow Jones Industrial Average closed more than 100 points higher, with tech stocks supported by a boost in Netflix’s share price after the streaming giant said it would raise prices for its monthly subscriptions in the U.S. by 13 to 18 percent. That would be Netflix’s biggest price hike since it launched its streaming platform over a decade ago.
Worries over trade weighed on Tuesday, however, after Sen. Chuck Grassley said U.S. Trade Representative Robert Lighthizer saw little progress in last week’s negotiations with China. Washington and Beijing have been engaged in a fierce battle of tariffs, with both hitting billions of dollars’ worth of each other’s imports with new duties.
U.S. officials met with their Chinese counterparts last week for discussions which Trump said were “going very well.” The two countries have agreed to a 90-day trade truce during which they will hold off on increasing tariffs in the hope that an agreement is met.
On the earnings front, financial titans including Bank of America, Goldman Sachs, BlackRock and U.S. Bancorp are all due to report their results Wednesday. Three major Wall Street banks have posted so far this week: Citigroup, J.P. Morgan and Wells Fargo. Citi and Wells Fargo both posted a beat in profits while J.P. Morgan’s results disappointed, marking its first miss in 15 quarters.
In terms of data, MBA mortgage applications are due today at 7:00 a.m. ET, December retail sales figures and import and export prices will be published at 8:30 a.m. ET, while November business inventories and the January housing market index are set to be released at 10 a.m. ET.