Wall Street opened with declines on Wednesday as investors reacted to the news of upcoming trade talks between the U.S. and China, as well as a probe by the Trump administration into Silicon Valley giants and disappointing earnings from Boeing and Caterpillar.
Despite the decreases, the Dow Jones Industrial Average, S&P 500 and Nasdaq all still remain near record-territory.
Second-quarter earnings will roil the markets all-day on Wednesday as Facebook, Ford Motor Co. and other top U.S. firms prepare to release financial results through June after the closing bell. Kicking off the day, Caterpillar reported $14.43 billion in revenue and profits of $2.83 per share, both below analyst expectations.
Boeing also missed projections, reporting a profit loss of $5.21 per share compared to Wall Street predictions of $1.87 per share. Revenue in the second quarter was $15.8 billion, less than the expected $18.55 billion.
While early, 79 percent of companies that have reported earnings exceeded earnings projections, while 65 percent beat revenue predictions. Overall, S&P 500 earnings are up 8.7 percent from 2018.
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are heading to Shanghai next week to meet with their Chinese counterparts – Vice Premier Liu He and Commerce Minister Zhong Shan.
The talks are aimed at restarting negotiations after Trump and Chinese President Xi Jinping reached a deal in June to withhold the imposition of new tariffs as the two nations seek to craft a trade deal.
Meanwhile, shares for Amazon, Facebook, Apple and Google all fell in premarket trading after the Department of Justice announced it would investigate technology firms for possible anticompetitive behavior.
The agency vowed to seek redress if any violations of wrongdoing were uncovered in the probe.
Oil was trading higher on Wednesday ahead of a report from the Energy Information Administration that is expected to highlight that crude stockpiles fell 4 million barrels.