Wednesday's trading: 5 Things to know

Here are the key events taking place on Wednesday that could impact trading.

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U.S. TRADE GAP: The trade gap in the U.S. for April narrowed to $87.1 billion, shrinking more than economists had forecasted, after reaching a record deficit the prior month. A key release this week will be the consumer-price index on Friday, which will be closely watched for signals on whether inflation is weakening or not.

MUSK THREAT: Twitter shares rose 57 cents, or 1.4%, to $40.13 after Elon Musk threatened Monday to end his acquisition of the social-media platform, saying the company didn't comply with requests for data about spam accounts.

RETAIL OVERSTOCK: Target shares dropped $3.69, or 2.3%, to $155.98 after the retailer issued a warning that its profit would decline because it needs to cancel orders or offer discounts to clear out unwanted goods, a potential sign of lower consumer spending. Shares of other big retailers followed, with Walmart declining $1.50, or 1.2%, to $123.37. 

ENERGY INVENTORY: The DOE’s Energy Information Administration will release its inventory report for last week. Crude stockpiles are expected to fall by nearly 2 million barrels, following a much steeper-than-expected draw of more than 5 million barrels the previous week. Watch for builds of about 1 million barrels in distillate supplies (heating oil, diesel fuel), and 1 million barrels in gasoline inventories.

KOHL’S SHARES HIGHER: Shares of Kohl’s jumped $3.97, or 9.5%, to $45.59 after The Wall Street Journal reported the department-store chain is in exclusive talks to be sold to retail holding company Franchise Group. The deal would value the company at about $8 billion.