Stock market live updates: Futures surge on coronavirus treatment, Gilead 'positive data emerging', GDP shrinks - CNBC

A worker makes protective face masks at the L.L. Bean Inc. manufacturing facility in Brunswick, Maine, on Tuesday, April 7, 2020.

Adam Glanzman | Bloomberg via Getty Images

U.S. equity futures pointed to solid gains at the opening of trade on Wednesday ahead of key updates from the Federal Reserve and the first look at U.S. first-quarter GDP growth. Investors hope Fed Chairman Jerome Powell will detail how long central bank officials see interest rates near zero while others brace for the first decline in U.S. economic activity in six years.

This is a live blog. Here's what's happening:

8:40 am: First-quarter GDP growth sinks 4.8%, worst print in more than 10 years

Gross domestic product fell 4.8% in the first quarter, according to government numbers released Wednesday. The data provides another crucial look at how, and to what extent, the coronavirus is dragging on U.S. economic activity. Economists surveyed by Dow Jones had expected the first estimate of GDP to show a 3.5% contraction.

This marked the first negative GDP reading since the 1.1% decline in the first quarter of 2014 and the lowest level since the 8.4% plunge in Q4 of 2008 during the worst of the financial crisis. Most economists see the U.S. in recession already even though the technical definition is generally two consecutive quarters of negative growth. The fourth quarter of 2019 saw GDP rise 2.1%. — Cox

8:30 am: Dow futures up 400 points after Gilead treatment shows positive results

Equity futures jumped around 8:30 a.m. ET after Gilead Sciences said it's learned of positive data emerging from the National Institute and Infectious Diseases' study of its drug remdesivir for treating Covid-19. Gilead said the trial has "met its primary endpoint" and advised investors that government officials will provide further details at an upcoming briefing. — Franck

8:24 am: Energy stocks jump as oil rises

Energy stocks moved higher during Wednesday's premarket trading following a more than 16% jump in West Texas Intermediate. The Energy Select Sector SPDR Fund, which tracks the sector and trades under the ticker XLE, rose 2.3%. Phillips 66, Diamondback Energy and Marathon Petroleum all gained more than 4%, while Exxon and Chevron each traded more than 1% higher. – Stevens

8:11 am: Fed to hold rates steady, but other tools available

The Federal Reserve is widely expected to hold its benchmark interest rate at its historically low level Wednesday, when it wraps up its April meeting. The central bank could announce some other policies, such as giving more guidance on how long it expects to hold interest rate steady or new programs to drive down long-term rates. Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note to clients that he would like to hear more details about some of the Fed's already-announced programs, including the Main Street Lending Program that is not yet operational. — Pound, Cox

8:08 am: Wealthy investors waiting for pullback, UBS survey says

The majority of wealthy investors are waiting for stocks to drop by 5% to 20% before buying in, according to a survey from UBS. Globally, 61% said they were waiting for a drop, while 23% said now was a good time to buy. Investors in the U.S. were more pessimistic about the next six months than those in the rest of the world. Just 35% of investors in the U.S. said they were optimistic about stocks in their own region in the next six months, compared with 46% in Europe and 51% in Asia. — Pound

8:03 am: US oil surges 16% as inventories reportedly rise less than expected

Oil prices jumped on Wednesday following a report that showed a smaller-than-expected build in U.S. inventories. West Texas Intermediate for June delivery surged 17.10%, or $2.11, to $14.45 per barrel, while international benchmark Brent crude traded 4.8% higher at $21.49. The surge higher came after data from the American Petroleum Institute showed that U.S. crude inventories jumped by 10 million barrels in the week to April 24, to 510 million barrels. That was lower than analysts' expectations of a build of 10.6 million barrels, according to estimates from Reuters. — Stevens

7:57 am: GDP for first quarter expected to post first decline since 2014

The first comprehensive look at how much damage the coronavirus did to the U.S. economy will come at 8:30 a.m. ET, when the government reports its initial estimate of gross domestic product for the first quarter of 2020. Economists surveyed by Dow Jones expect that GDP in the first quarter fell 3.5%, which would be the first negative reading in six years. But, even that number will underestimate the depth of a recession caused by stay-at-home orders to combat the coronavirus, which are expected to take an even greater toll on the second quarter. Goldman Sachs economists think further revisions could take the number down to 8% or more, rivaling the worst reading since the 8.4% plunge in Q4 of 2008. — Cox

7:52 am: Alphabet jumps 7% following earnings

Shares of Google-parent Alphabet rose more than 7% in premarket trading on Wednesday following the technology giant's quarterly earnings. The report showed advertising revenue slowed but starting to moderate; despite an increase in usage on YouTube and other apps, advertising revenue suffered. "The decline in our Search and other ads revenue was abrupt in March, and although we're seeing some early signs at this point that users are returning to more commercial behavior, it's not clear how durable or monetizable that will be," Alphabet CFO said. Adjusted earnings came in at $9.87 per share, lower than the $10.33 forecast by analysts, according to Refinivitv. Revenue came in at $41.16 billion, topping estimates of $40.29 billion. — Fitzgerald 

7:30 am: Futures rise ahead of Fed decision, GDP data

Stock futures jumped in early trading on Wednesday and pointed to healthy gains at the open ahead of the Federal Reserve's latest monetary policy decision and key GDP data. Dow Jones Industrial Average futures were up 133 points and implied an opening gain of around 182 points. S&P 500 futures rose 1% and Nasdaq 100 futures added 1.4%.

Investors are focused on the Fed's upcoming interest rate decision and comments on the state of the U.S. economy, due for release at 2 p.m. ET. Wall Street will pore over the central bank's usual statement and subsequent comments by Chairman Jerome Powell for hints about how long officials think rates will remain near zero as the economy grapples with the coronavirus crisis.

Another potential market mover will be the Commerce Department's first report on first-quarter gross domestic product. Economists polled by Dow Jones forecast that U.S. GDP growth fell by 3.5% in the first quarter on an annualized basis. Such a slide would represent the first decline in U.S. economic growth in six years. U.S. GDP grew by 2.1% in the fourth quarter of 2019. — Franck

— CNBC's Jeff Cox and Jesse Pound contributed reporting.

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Stock market live updates: Futures surge on coronavirus treatment, Gilead 'positive data emerging', GDP shrinks - CNBC
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