The Market In 5 Minutes: Downtrend Continues

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 pulled lower Wednesday, setting up Dow industrials for their eighth loss in a row, as investors waited for fresh readings on the services sector and a precursor to the closely watched jobs report [due Friday]," said MarketWatch. "Analysts have said a recent spate of soft economic data and a slump in oil prices into bear-market territory has sapped appetite for equities."

Oil prices traded higher as Brent crude futures rose 0.33 percent to trade at $41.94 per barrel, while US WTI crude futures also rose 0.40 percent to trade at $39.67 a barrel. The Energy Information Administration’s weekly report on petroleum inventories is schedule for release at 10:30 a.m. ET.

USA ADP Employment Change for Jul 179.0K vs 170.0K consensus estimate. The prior reading was 172.0K.

The Markit Services PMI for July is schedule for release at 9:45 a.m. ET.
The ISM non-manufacturing index for July will be released at 10:00 a.m. ET.

BZ News Desk Focus

Kate Spade KATE Reports Q2 EPS $0.28 vs. Est. $0.14, Rev. $320M vs. Est. $318M
Time Warner TWX Reports Q2 Adj. EPS $1.29 vs $1.16 Est., Sales $7B vs $7.05B Est.
Fitbit FIT Reports Q2 EPS $0.12 vs. Est. $0.11, Rev. $586.5M vs. Est. $578M
EA EA Reports Q1 Adj. EPS $0.07 vs $(0.02) Est., Sales $682M vs $650.7M Est.
Tableau Software DATA Reports Q2 Adj. EPS $0.00 vs $0.05 Est., Sales $198.5M vs $193.8M Est.
Qorvo QRVO Reports Q1 Adj. EPS $1.08 vs $1.05 Est., Sales $697.6M vs $650.6M Est.
Etsy ETSY Reports Q2 Loss -$0.07 vs Est Loss -$0.01/share, Rev $85.3M vs $80.55M Est

Sell-Side Themes

Rubicon Project RUBI was downgraded by at least four firms after lowering guidance.

Sell-Side's Most Noteworthy Calls

Goldman Sachs downgraded Western Digital WDC to Sell.
Bank of America downgraded Theravance Biopharma TBPH.
Cowen upgrades Phillips 66 PSX to Outperform.
Imperial upgraded Brink's BCO to Outperform.
William Bliar initiated coverage on Curtiss-Wright CW at Market Perform.

Deal Talk

Shares of Biogen BIIB spiked sharply on Tuesday, as the Wall Street Journal reported takeover interest from Allergan AGN and Merck MRK. CNBC's Meg Tirell later tweeted that Allegan was unlikely to pursue a Biogen deal.

Fiat Chrysler FCAU declined comment on a report that Samsung SSNLF was in talks to acquire an auto parts unit of the company.

In The News

America's biggest companies logged a fourth straight quarter of shrinking profits and tepid sales, as weakness from energy companies and lower business investment more than offset U.S. consumer strength.

Donald Trump is declining to endorse House Speaker Paul Ryan and former presidential nominee John McCain in their primary fights, another sign of the fractures within the party. Ryan and McCain face long-shot challengers in their respective primary races in Wisconsin and Arizona, yet their party's presidential nominee would not bless them in an interview with The Washington Post.

Blogosphere

Did the German just deliver a lesson to Amazon AMZN?

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