The U.S. stock market continued on a more aggressive slip Tuesday as Wall Street begins to near the start of the first-quarter earnings season. The S&P 500 was 1% lower at Tuesday’s closing, while the Dow Jones Industrial Average fell 0.8%.
As investors and traders start looking toward Wednesday, they should do so with at least one eye on Wynn Resorts, Limited (NASDAQ:WYNN), Ford Motor Company (NYSE:F) and Cree, Inc. (NASDAQ:CREE) as the week progresses.
Here’s what you need to know:
Ford Motor Company (F)
Ford stock is facing some populous backlash as the automaker announced a new assembly plant in Mexico.
The company announced plans to build a new $1.6 billion auto assembly plant in the San Luis Potosi State, creating 2,800 jobs in a North American that isn’t the United States, rankling many back on the homefront.
Production of the Focus compact and C-Max small gas-electric hybrid will move from Detroit to Mexico.
The United Auto Workers signed a new four-year contract with Ford last year that ensures new vehicles will be manufactured for the Wayne, Michigan, assembly plant in 2018 and 2020. The company is investing $700 million to keep nearly 4,000 workers employed at the plant. Nonetheless, UAW spoke out against the plant, calling it “a disappointment and very troubling.”
F stock was set to open Wednesday’s trading slightly higher.
Wynn Resorts, Limited (WYNN)
The casino resorts operator’s shares fell as the company issued an update on what investors should expect from its quarterly earnings report.
Wynn Resorts said Tuesday that fiscal first-quarter results will be significantly lower than expected for another quarter due to underwhelming revenue from the company’s overseas operations — specifically in Macau. Preliminary earnings results revealed that Macau revenue may be down as much as 14.5% year-over-year.
On the bright side, Wynn Resorts’ Las Vegas revenue may be higher compared to the year-ago period.
The casino owner also plans to open a $4.1 billion location later this year called Wynn Palace.
WYNN shares were set to open 1% lower in Wednesday’s trading.
Cree, Inc. (CREE)
Cree shares plummeted after Tuesday’s closing as the company announce that it anticipates lower-than-expected quarterly results.
The manufacturer of LED applications said that third-quarter revenue will miss estimates due to a number of issues, including product delays. Cree said a system conversion resulted in customer service mishaps for the company.
Expect Cree’s most recent revenue to come in at about $367 million, missing the $400 million to $430 million that analysts projected.
The company added that fourth-quarter revenue will meet expectations, but that was little solace to investors, who were bidding Cree down some 19% in Wednesday’s premarket action.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
