U.S. stock futures were pointing to about a 100-point drop for the Dow Jones Industrial Average at Wednesday's open on Wall Street. The Dow closed unchanged Tuesday for the first time in 5½-years. The Nasdaq finished at a record. The S&P 500 managed a small gain but failed to close at a new high. The government said Wednesday morning that October consumer prices increased more than expected. On the trade front, President Donald Trump said Tuesday that a "significant phase-one" deal with China "could happen soon." However, The Wall Street Journal reports that questions about what the U.S. has agreed to on tariffs is becoming a hurdle.
Federal Reserve Chairman Jerome Powell goes before the Congressional Joint Economic Committee on Wednesday to talk about the economy, a day after Trump resumed bashing Powell and his fellow central bankers. In Tuesday's address to the Economic Club of New York City, the president said that other nations have negative rates but the Fed "doesn't let us play the game." Trump added, "Give me some of that money. I want some of that money." Powell goes before the House Budget Committee on Thursday.
Top Trump economic advisor Larry Kudlow hinted at a middle-class tax cut as the president searches for an edge in his 2020 reelection bid. With just under a year until voters decide whether Trump gets a second term in the White House, the National Economic Council director said, "The president has asked me to pursue something called Tax Cuts 2.0." However, it's doubtful a Democratic-controlled House, which is conducting an impeachment inquiry into the president, would pass such a tax cut.
House Democrats hold their first public hearing Wednesday, which will be televised, in their Trump impeachment investigation, centering on whether the president pressured Ukraine to probe rival Joe Biden. Republicans, led on the Intelligence Committee by Trump-ally Rep. Devin Nunes, plan to argue that none of the witnesses being called has first-hand knowledge of the president's actions. Republicans are also expected to say that Ukraine never felt pressured and that military aid, which was held up for other reasons, eventually flowed.
Alphabet's Google will offer checking accounts next year, according to a source familiar with the company's plans, representing Big Tech's boldest move yet into the consumer banking business as most have focused on credit cards and payment platforms. The accounts for the project will be run by Citigroup and the Stanford Federal Credit Union. The Wall Street Journal was first to report the offering. Previous attempts by Apple and Facebook faced obstacles.
— The Associated Press contributed to this report.