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Morning Brief

Wall Street looks to break 3-session losing streak

Key Points

U.S. stock futures were higher this morning, ahead of Fed Chair Janet Yellen's congressional testimony today and tomorrow. She's expected to try to balance the Fed's stated goal of raising interest rates against the risks of a weaker global economy. (CNBC)

GOP presidential candidate Donald Trump and Democrat Bernie Sanders swept to convincing victories in the New Hampshire primaries last night. Republican John Kasich was the projected second place finisher. Hillary Clinton was a distant second to Sanders. (CNBC)

Wall Street, in the midst of a correction, is looking to break a three-session losing streak. The Dow traveled up and down over a thousand points Tuesday, before closing slightly lower. The Nasdaq was off slightly Tuesday, as the index hovers above a bear market. (CNBC)

U.S. oil prices pushed higher this morning after Iran said it was open to co-operation with Saudi Arabia on how to handle the depressed market conditions. Crude was partly recovering from Tuesday's nearly 6 percent decline. (Reuters)

Meanwhile, OPEC has cut its forecasts for how much its rival producers, such as the United States, will produce in 2016, while the 12-member group continues to ramp up its own production levels. (CNBC)

Stocks in Japan continued to tumble, with the Nikkei dropping 2.3 percent today, following Tuesday's 5.4 percent decline. Meanwhile, Japanese Prime Minister Shinzo Abe defended the Bank of Japan's move to negative interest rates. (CNBC)

Negative interest rates in the U.S. may seem like a far-fetched idea, but the Fed is telling banks to prepare, just in case. The scenario is purely hypothetical and not a forecast, according the central bank, but banks are being asked to stress test the idea. (CNBC)

Dow component Walt Disney (DIS) beat estimates on earnings and revenue, thanks in part to the success of the latest "Star Wars" movie. However, shares were under pressure in the premarket on continued worries about profit declines at ESPN and other Disney-owned channels. (CNBC)

ESPN has gotten out early from an exclusive advertising relationship with DraftKings, according to Yahoo Finance, as daily fantasy sports companies face legal and legislative pressures. Meanwhile, Disney is planning to bring "Frozen" to Broadway.

SolarCity (SCTY) was losing about 30 percent in premarket trading, after projected installations fell short and forward guidance disappointed. The company, whose chairman is Elon Musk, did report a small-than-expected loss and beat on revenue. (Reuters)

Deutsche Bank (DB) was surging in Europe and in the U.S. premarket, as the bank considers whether to buy back several billion dollars of its debt. Deutsche Bank's co-CEO on Tuesday sought to reassure the markets about their financial health. (FT)

UBS (UBS) has reacted to the global financial market turbulence and sharp falls in bank share prices by freezing salaries for its investment bankers until at least mid-year, even employees who got promotions. (FT)

Anheuser-Busch InBev (BUD) and SABMiller were nearing a deal to sell the Peroni and Grolsch brands to Japan's Asahi for about $3.5 billion. Anheuser and SABMiller were looking make the sale to address regulatory concerns about their planned merger. (WSJ)

In a victory for a coalition of 27 mostly Republican-led states, a divided Supreme Court has agreed to halt enforcement of President Barack Obama's sweeping plan to address climate change until after legal challenges are resolved. (AP)


Given the current world oil glut, the Energy Department's 10:30 a.m. ET release of oil and gasoline inventories should get increased attention. The industry group American Petroleum Institute reported late Tuesday a less than expected increase in crude stockpiles.

A sharp drop in interest rates prompted more homeowners to refinance their mortgages, especially those with large loans. Total mortgage application volume increased 9.3 percent, according to the Mortgage Bankers Association.

The Treasury releases its January federal budget statement at 2 p.m. ET. Tomorrow morning, the Labor Department releases its weekly jobless claims report. Then on Friday, the Commerce Department issues January retail sales.


Time Warner (TWX) this morning reported earnings that beat expectations but revenue that missed. The media giant increased its quarterly dividend by 15 percent, and upped its profit outlook. Meanwhile, Dow component Cisco Systems (CSCO), Twitter (TWTR), and Tesla (TSLA) issue quarterly results after the bell.

Akamai Technologies (AKAM) beat on earnings and revenue, helped by stronger demand for security-related solutions. The distributor of online content also unveiled a $1 billion share buyback program.

An advisory panel to the FDA has recommended the agency approve the sale of a knockoff version of Johnson & Johnson's (JNJ) arthritis drug Remicade.

Panera Bread (PNRA) exceed expectations with earnings but fell short on revenue. The fast casual chain did say higher prices helped sales increase during the quarter, and it expects growth to be sustained this year.


YouTube, part of the Google-Alphabet (GOOGL) conglomerate, is releasing three made-for-YouTube movies and a new series today, in response to competitors like Netflix, Hulu and Amazon (AMZN). (USA Today)

Sumner Redstone, in new court documents, said he decided to cut former girlfriend Manuela Herzer out of his will. The ailing media mogul's lawyers said she's not entitled to inherit $70 million. (LA Times)

Burberry Group, the British luxury fashion brand, is suing J.C. Penney (JCP), alleging trademark infringement for selling outerwear that featured exact copies of its famous "Burberry check" pattern. (Reuters)