The Market In 5 Minutes: Elon Musk's Trillion-Dollar Bet

Below is a tool used by the Benzinga News Desk each trading day -- it's a look at everything happening in the market, in five minutes. Apply for daily AM access by clicking here or email minutes@benzinga.com.

Macro Focus

U.S. stock futures traded higher in early pre-market trade. Futures for the Dow Jones Industrial Average surged 13 points to 17,755.00, while the Standard & Poor’s 500 index futures rose 1.25 points to 2,082.50. Futures for the Nasdaq 100 index gained 7.25 points to 4,408.50.

Oil prices traded higher as Brent crude futures gained 0.30 percent to trade at $50.77 per barrel, while US WTI crude futures also rose 0.40 percent to trade at $50.05 a barrel. The EIA’s weekly report on petroleum inventories or the recent week will be released at 10:30 a.m. ET.

The Fed Vice Chair Stanley Fischer is scheduled to speak in Stockholm at 9:25 a.m. ET, while the Federal Reserve Chair Janet Yellen is scheduled to testify before the House Financial Services Committee in Washington at 10:00 a.m. ET.

BZ News Desk Focus

Some of last night's and this morning's most notable earnings:

Adobe ADBE Reports Q2 Adj. EPS $0.71 vs $0.68 Est., Sales $1.4B, Inline
FedEx FDX Reports Q4 Adj. EPS $3.30 vs $3.28 Est., Sales $13B vs $12.78B Est.
KB Home KBH Reports Q2 EPS $0.17 vs. Est. $0.14, Rev. $811.05M vs. Est. $747.06M
La-Z-Boy LZB Reports Q4 EPS $0.45 Vs Est $0.48, Sales $417.070M Vs Est $416.48M
Winnebago WGO Reports Q3 EPS $0.53 vs $0.45 Est., Sales $272.1M vs $270.5M Est.

Sell-Side Themes

The Street was mixed on Abode's earnings report, with some questioning what its next catalyst will be and others saying they wanted more.

Sell-Side's Most Noteworthy Calls

Nomura downgrades Wendys WEN to Neutral.
Morgan Stanley downgraded AMC Networks AMCX to Equal-Weight.
Raymond James upgraded Canadian Pacific CP to Strong Buy.
Barclays upgraded Priceline PCLN to Overweight.
BB&T initiated coverage on Chesapeake CHK at Buy.

Deal Talk

After Tuesday's market close, Tesla TSLA announced it had made an all-stock bid to acquire SolarCity SCTY for $26.50-$28.50 per share. Elon Musk co-founded SolarCity in 2006 and is its largest shareholder. For Tesla, he led the Series A round of investment in February 2004, joining Tesla's board of directors as its chairman. He become CEO in 2008.

On a conferece call, Musk said he has "zero doubt" about the deal and said Tesla has potential to be "trillion dollar market cap company."

Ultimate Fighting Championship (UFC) has sold itself to an investment group led by the William Morris Endeavor-IMG talent agency, according to a report by FloCombat, a popular blog site that covers mixed martial arts news events.

In The News

On Thursday, the Federal Reserve will release round one of its annual “stress tests,” which rely on hypothetical scenarios. The more important day is next Wednesday, when the Fed releases the full results of the tests, including any capital restrictions. Investors will care more about the second round of test results because those will ultimately determine whether a bank can increase its payout to shareholders.

Bloomberg looked into the "lonely aftermath" of China's one child policy. Single-person households could reach 132 million by 2050 and erosion of traditional family units would increase consumption.

Advertisers are trying new tactics to reach consumers. Some use data to sharpen their messages, while others blur line between ads and content.

Blogosphere

Warren Buffett called it quits after his worst year ever, but he still went out on top.

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