UKX FTSE 100 Index

By Chris Matthews and William Watts, MarketWatch

Tesla shares rise after Musk denies demand problem

Stock-index futures drifted lower Wednesday, a day after the Dow Jones Industrial Average snapped a six-day winning streak, with investors awaiting a reading on May consumer inflation as they continue to eye the U.S.-China trade fight.

Dow futures fell 71 points, or 0.3%, to 25,993, while S&P 500 futures lost 7.9 points, or 0.3%, to 2,878.75. Nasdaq-100 futures were off 35.75 points, or 0.5%, at 7,483.

What's driving the market?

Stocks ended with small losses Tuesday after flipping between positive and negative territory. The Dow closed 14.17 points lower at 26,048.51, off 0.1%, while the S&P 500 shed 1.01 points, or less than 0.1%, to close at 2,885.72. The Nasdaq finished with a loss of 0.6 points at 7,822.57. The declines ended five-day winning streaks for both the S&P and the Nasdaq.

U.S. President Donald Trump on Tuesday said he was the one "holding up" a trade deal with China, (http://www.marketwatch.com/story/trump-i-have-no-interest-in-trade-deal-until-china-reverses-its-stance-2019-06-11) saying the two countries would "either do a great deal...or we're not doing a deal at all."

Analysts blamed the remarks for casting a somewhat negative tone over global equities.

Investors are also watching protests in Hong Kong. Police on Wednesday fired tear gas and high-pressure water hoses (http://www.marketwatch.com/story/renewed-protests-in-hong-kong-as-government-debates-extradition-bill-2019-06-11) at protesters who massed outside government headquarters in opposition to a proposed extradition bill that has sparked concerns over China's control of the semi-autonomous territory.

What's on the economic calendar?

Investors are focusing on inflation data, with the May consumer price index set for release at 8:30 a.m. Eastern.

What companies are in focus?

Shares of electric car maker Tesla Inc. (TSLA) were 2.6% higher in premarket action, after Chief Executive Elon Musk late Tuesday took the stage at the company's shareholder meeting and denied the company was facing demand and production problems (http://www.marketwatch.com/story/elon-musk-tesla-does-not-have-a-demand-problem-2019-06-11).

In deal news, France's Dassault Systems SE said it reached an agreement to acquire U.S. technology group Medidata Solutions Inc.(MDSO) in an agreement valued at $5.8 billion. Dassault will offer $92.25 a share for Medidata in an all-cash deal. Medidata shares were down 4% in premarket action at $90.75 a share.

Shares of Dave & Buster's Entertainment Inc. (PLAY) tumbled nearly 20% (http://www.marketwatch.com/story/dave-busters-stock-tanks-after-companys-quarterly-miss-lowered-guidance-2019-06-11) in off-hours trade, after the operator of entertainment and dining venues reported Tuesday evening first-quarter sales and earnings that fell short of Wall Street expectations.

Neptune Wellness Solutions Inc. (NEPT.T) announced a 3-year sourcing agreement (http://www.marketwatch.com/story/neptune-wellness-stock-soars-again-after-another-3-year-extraction-deal-with-a-cannabis-company-2019-06-12) with cannabis company Green Organic Dutchman Holdings Ltd. Neptune shares rose 5.6% before the bell Wednesday.

What are analysts saying?

"President Trump has defended his use of levies, and the threat of higher levies, as a way of trying to rebalance the trading relationship with China. Beijing have reiterated their willingness to hold a firm line against the U.S. The standoff is back at the forefront of dealers' minds and it has prompted some investors to take some money off the table," said David Madden, market analyst at CMC Markets UK, in a note.

How are other markets trading?

   The yield on the 10-year U.S. Treasury note   retreated one basis point to 2.122%. 

Asian markets traded down Wednesday (http://www.marketwatch.com/story/asian-markets-retreat-hang-seng-sinks-amid-hong-kong-protests-2019-06-11), with Japan's Nikkei 225 losing 0.4%, China's Shanghai Composite index sliding 0.6%, and Hong Kong's Hang Seng index retreating 1.7%, amid civil unrest in the semi-autonomous territory. European stocks were also trading lower, as evidenced by the 0.4% decline in the Stoxx Europe

In commodities markets, the price of crude oil slid 2.6%, while gold jumped 0.6%. The U.S. dollar , meanwhile, edged higher against its peers.

(END) Dow Jones Newswires

June 12, 2019 07:44 ET (11:44 GMT)

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