- Before the bell:
Market news
Before the bell:
Stocks were headed for a weak open Wednesday, after the government reported a widening trade deficit and commodity prices pull back.
U.S. stocks rose for the third straight day Tuesday, as investors were encouraged by Microsoft's $8.5 billion deal to buy Skype, along with solid corporate earnings reports and economic data.
Economy: The U.S. trade deficit widened to $48.2 billion in March, the Commerce Department said Wednesday. Economists were expecting a $47.7 billion trade deficit.
Companies: Automaker Toyota (TM) said Tuesday that while net income almost doubled and sales increased 0.2% for the fiscal year ended March 31, the earthquake that hit Japan earlier this year cost the company about ¥100 billion.
Also, insurer American International Group (AIG, Fortune 500) and the Treasury decided to move ahead with a $9 billion stock offering, despite the recent low price of the stock. Shares of AIG were down about 2% in premarket trade.
Before the opening bell, department store chain Macy's (M, Fortune 500) reported earnings per share of 30 cents, compared with 5 cents last year. The company also announced it was doubling its quarterly dividend to 10 cents per share on common stock. Shares of Macy's jumped 5% in premarket trade.
Dow component Cisco (CSCO, Fortune 500) is slated to issue its results after the closing bell. Analysts expect that the communications equipment maker earned 37 cents a share.
World markets:
Meanwhile, gas prices resumed their climb toward $4 a gallon after four straight days of declines. The national average price for a gallon of regular unleaded gasoline increased 1.1 cents to $3.962, according to AAA.
Gold futures for June delivery fell $3.30 to $1,513.60 an ounce.
Silver futures for July delivery fell 78 cents to $37.71.
The price on the benchmark 10-year U.S. Treasury was down ever so slightly with the yield at 3.23%.
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