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Premarket: Here's what you need to know before clock



The Federal Reserve announces its interest rate decision at ET, followed by a press conference with Chairman Jerome Powell.

It is widely expected that the Fed will cut interest rates for the first time in more than a decade. Attention will then shift to what Powell has to say about the road ahead.

Powell may also face questions about why an interest rate cut is needed at a time when the US economy is strong and unemployment remains historically low, and whether cutting interest rates can now limit the Fed's ability to respond to a future crisis.

The economic impact of the US-China trade struggle is also likely to rise. President Donald Trump's tweets Tuesday with criticism of China indicated that a deal could still be a way to end.

2. Smartphone slide: A saturated smartphone market hit both Samsung ( SSNLF ) and Apple ( AAPL ) quarter. But Apple, unlike Samsung, still managed to increase revenue.

Samsung's smartphone business profits fell by nearly 42% to 1

.56 trillion Koreans won ($ 1.32 billion), and the outlook for the rest of the year looks bleak. [19659002] "Overall demand for the mobile market is expected to remain weak due to growing uncertainty around the global economy and trade," Samsung said on Wednesday.

Revenue fell 4% compared to last year when Samsung also faced price declines in its memory chip business. Shares fell almost 3%.

Apple said Tuesday that iPhone sales for the quarter fell to around $ 26 billion, down nearly 12% from the same period the year before.

But the company managed to increase its overall revenue by 1% year-on-year as it finds more traction selling portable devices and digital services, including Apple Pay and Apple Music. Shares rose more than 4% in trading in the premarket.

3. GE Earnings: General Electric's downforce division continues to pull down the company's profits, and GE burns through cash. But investors know it now.
Instead, they hope GE ( GE ) can continue to show progress in its turnaround when the company reports earnings before US markets open.

Despite tumbling earnings, GE has stood by its guidance in 2019 for industrial free cash flow throughout the year. But it faces a new threat: the Boeing 737 Max crisis.

Boeing said last week that it is preparing for a 737 Max production shutdown in case it does not receive approval to fly the grounded aircraft again this year. It will serve as a setback for GE, as do jet engines for the 737 Max.
Want more markets? Watch CNN's digital live show "Markets Now" on Wednesday at 12:45 p.m. ET.
4. Global markets: US stock futures point higher ahead of the Fed news.

Dow will rise about 70 points, or 0.3%, when US markets open. The S&P 500 will increase 0.2%, while the Nasdaq will track 0.4%.

Meanwhile, European markets are more of a mix. The UK's FTSE 100 fell 0.3% in early trade, while Germany's DAX gained 0.1%.
Airbus ( EADSF ) reported stronger-than-expected earnings in the three months ending in June, but noted that it could face delivery challenges in the second half of the year.
Stocks in Asia fell on trade concerns as negotiations between Washington and Beijing continue. Hong Kong's Hang Seng dropped 1.3% and Japan's Nikkei tossed 0.9%.
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5. Coming This Week:
Wednesday – Fedrent Adoption; GE, Occidental Petroleum, Molson Coors and Qualcomm Revenue
Thursday – Bank of England rate decision; General Motors, Dunkin & # 39 ;, Kraft Heinz & Verizon Revenue
Friday – US Labor Reports; Exxon, Chevron and Berkshire Hathaway Revenue


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