Closing Bell
The Dow fell 1% on Wednesday as markets continue to decline following the Trump administration's decision to part ways with former Secretary of State Rex Tillerson
The Dow Jones Industrial Average fell 249 points on the day to 24,758 while the Nasdaq declined 0.2%, or 14 points, to 7,497 and the S&P 500 fell 0.57%, or 16 points, to 2,749.
France Seeks 2 Million Euro Fine Against Google, Apple
France announced that it will sue Apple (AAPL) and Google (GOOGL) to seek 2 million euros in fines over the "abusive" contract terms that the company imposes on app developers looking to be featured in the respective companies' app stores.
"As powerful as they are, Google and Apple should not be able to treat our startups and our developers the way they currently do," France's Finance Minister Bruno Le Maire told a radio station.
Google disagreed with the Le Maire's characterization of its app store contract, telling Reuters, "We believe our terms comply with French laws and are looking forward to making our case in court."
YouTube, Wikipedia Partner to Combat Conspiracy Videos
YouTube announced that it will begin placing links to Wikipedia articles on videos that are deemed to be "conspiracy theories" on its platform.
"People can still watch the videos, but then they have access to additional information," CEO Susan Wojcicki said.
The measure does not go far enough for critics who believe that closer censorship is the answer.
The move comes after viewers on the Alphabet (GOOGL) subsidiary's website made a video suggesting that a Parkland high school shooting survivor was an actor the top trending video on the website.
The video was removed by YouTube after garnering more than 200,000 views.
Disney Announces Strategic Reorganization
Disney (DIS) announced a new strategic reorganization of its business as it looks to the future to maximize its growth opportunities.
Disney has now formed four segments which include Direct-To-Consumer and International; the combined Parks, Experiences and Consumer Products; Media Networks; and Studio Entertainment.
We are strategically positioning our businesses for the future, creating a more effective, global framework to serve consumers worldwide, increase growth, and maximize shareholder value," said Bob Iger, Chairman and Chief Executive Officer. "With our unparalleled Studio and Media Networks serving as content engines for the Company, we are combining the management of our direct-to-consumer distribution platforms, technology and international operations to deliver the entertainment and sports content consumers around the world want most, with more choice, personalization and convenience than ever before."
OPEC Expects Rivals to Undercut Its Own Cuts
The Organization of Petroleum Exporting Countries expects non-OPEC producers to increase their supply by 1.66 million barrels per day in 2018, undercutting its own efforts to limit production in order to combat a supply glut that has more than halved oil prices from their highs three years ago.
OPEC previously forecast growth of 870,000 bpd.
"For 2018, higher growth is expected on the back of the projected increase in U.S. shale production following a better price environment not only for shale producers, but also for other countries such as Canada, the UK, Brazil and China," OPEC said.
Adidas Growth Narrative Back on Track Following Earnings Release
Shares of Adidas (ADDYY) were rising in Germany after the company reported 12% revenue growth in the fourth quarter, bouncing back from disappointing third-quarter results that threatened to derail the company's growth narrative.
The athletic apparel maker forecast that revenue would grow 10% for the year, sending shares rising more than 6% in Frankfurt. The company said that it expects "very strong" sales in the U.S. while growth will decelerate in Western Europe and the Middle East.
Ford Recalls 1.3 Million Vehicles Over Steering Wheel Malfunction
Ford (F) announced the recall of 1.3 million Ford Fusion and Lincoln MKZ vehicles Wednesday due to an issue that could cause the steering wheel on the vehicles to become detached.
Ford said that two accidents have been reported with one injury due to the issue.
"In affected vehicles, the steering wheel bolt may not maintain torque, allowing the bolt to loosen over time, and if not serviced, a steering wheel could potentially detach and lead to a loss of steering control and increased risk of a crash," the company said.
Vehicles built at the company's Flat Rock and Hermosillo assembly plants were subject to the recall.
Ford shares were up nearly 4% Wednesday morning in spite of the recall after analysts at Morgan Stanley made a bullish call on the company.
Walmart Expands Grocery Deliveries to 100 Cities
Walmart (WMT) announced that it will expand its grocery delivery service to 100 metropolitan areas covering about 800 stores by the end of the year.
The expansion will allow the service to reach more than 40% of U.S. households while offering shippers same-day delivery options.
The company says that it expects to expand the service to about 2,200 stores before the year is out.
Shoppers will pay a flat delivery fee of $9.95 for a basket of groceries that has to total at least $30.
China Investment Corp Cashes Out of Blackstone Stake
China Investment Corp, China's sovereign investment fund, is exiting its stake in Blackstone Group (BX) , more than a decade after it purchased a $3 billion stake in Blackstone in 2007.
The private equity firm's relationship with China was seen as a watershed moment for U.S./Chinese relations at the time, but the two countries have since grown apart, hurt recently by President Trump's decision to impose tariffs on steel and aluminum imports.
CIC purchased its stake in Blackstone at $29.605, a discount to the stock's $31 IPO price. Blackstone's stock price was one of the victims of the global recession and it didn't reach IPO levels until 2014.
Google to Ban Crypto Advertisements
Alphabet (GOOGL) plans to ban advertising cryptocurrencies and other "speculative financial products" across its advertising platforms starting in June, the company announced.
The new policy will also restrict ads for binary options, financial spread-betting and other methods of speculating on crypto trading.
Google is following the lead of Facebook (FB) which also banned cryptocurrency advertisements on January 30.
Premarket
U.S. futures were rising Wednesday morning, indicating a strong open for markets following a down day of trading Tuesday.
Dow futures were rising 0.35%, indicating an open 88 points higher, Nasdaq futures were up 0.41%, indicating an open 29 points higher, and S&P futures were up 0.24%, indicating an open 7 points higher.
Asian markets struggled Wednesday, led lower by the Nikkei which fell 0.87%, while the Hang Seng dropped 0.47% and the Shanghai Composite declined 0.57%.
European markets were rising led by the DAX which climbed 0.46%, the CAC 40 was rising 0.41% and the FTSE 100 gained 0.37% with about 5 hours left in trading.
