Morning Brief

Wall Street could rebound, but earnings hold key

Key Points


U.S. stock futures were higher this morning, as investors digest a flood of economic numbers and earnings, including results from three Dow stocks. The Nasdaq has fallen for three straight sessions. (CNBC)

Investors may also be cautious as the Fed begins its two-day April meeting this morning. The policy statement is set for release tomorrow afternoon. Wall Street does not expect an interest rate hike until much later this year, according to the CNBC Fed Survey.

The CNBC Fed Survey also finds 80 percent of respondents see Democrat Hillary Clinton winning the presidency this November. No one else is even close. Just 13 percent believe Republican Donald Trump will win the White House.

Five presidential primaries today, including the big prize in Pennsylvania, may offer Trump and Clinton their best chance before June to gain a decisive advantage. (NY Times)

Former Hewlett-Packard chief Carly Fiorina is being vetted as a potential VP running-mate for Republican Ted Cruz. Fiorina endorsed the Texas senator last month, after abandoning her own White House bid in February. (Re/code)

Dow components 3M (MMM), Procter & Gamble (PG), and DuPont (DD) report earnings this morning. DuPont far exceeded estimates with profit. Revenue also beat. DuPont raised its full-year outlook, as it plans to merge with Dow Chemical (DOW). (CNBC)

Procter & Gamble (PG) reported an adjusted 86 cents per share profit, beating estimates by 4 cents, with revenue slightly below forecasts. P&G saw a negative impact from currency fluctuations. (CNBC)

BP (BP) reported better-than-expected quarterly profit. But the oil giant cut its full-year capital spending projection and said further cuts were possible. In February, BP announced its worst annual loss in 20 years, $6.5 billion, for all of 2015. (CNBC)

Apple (AAPL), Twitter (TWTR), and Chipotle Mexican Grill (CMG) are out with earnings after-the bell this morning. Apple may report a year-over-year decline in quarterly revenue for the first time since 2003. (CNBC)

Facebook (FB) is said to be developing a , similar to disappearing photo app Snapchat, to increase user engagement. Though the service is in its early stages and may never come to fruition. (WSJ)

Federal regulators will impose several conditions meant to protect online video services as they back Charter's (CHTR) bid to buy Time Warner Cable (TWC) and create the country's second-largest home Internet provider. (AP)

China regulators have halted a partnership between Alibaba (BABA) and Walt Disney (DIS). DisneyLife, an online content service, was suspended at the request of China regulators. (WSJ)

Ant Financial, the affiliate of Chinese e-commerce giant Alibaba that runs Alipay, has raised $4.5 billion in what is the world's largest single private funding round for an internet company. (CNBC)

Sarepta (SRPT) received a negative recommendation from an FDA panel regarding its drug to treat Duchenne muscular dystrophy. The full FDA is not necessarily required to follow suit. But the stock was down 50 percent in premarket trading. (NY Times)

Mitsubishi Motors, the Japanese automaker that acknowledged last week that it had intentionally lied about its vehicle mileage estimates, said an internal investigation found such tampering dated back to 1991. (AP)

A week of dangerous severe storms capable of spawning tornadoes, very large hail, and damaging winds gusts are taking aim on parts of the Plains, Midwest and South. (Weather Channel)


Fed policymakers get a trifecta of economic reports to ponder on the first day of their April rate meeting: the government's March durable goods orders at 8:30 a.m. ET, Case-Shiller home price data for February at 9 a.m. ET, and the Conference Board's April consumer confidence index at 10 a.m. ET.

Oil prices were gaining ground this morning, though gains were capped by concerns that a battle for market share between Saudi Arabia and Iran could intensify further.

China moved to clamp down on excessive speculation in commodities, after weeks of frenzied trading boosted prices and ignited fears of another bubble in its domestic markets.

Dow stock United Technologies (UTX) raised its dividend by 2 cents to 66 cents per share, an increase of 3 percent. The dividend is payable on June 10 to shareholders of record as of May 20.


Eli Lilly (LLY) missed estimates by 2 cents with adjusted quarterly profit of 83 cents per share, although revenue was above forecasts. The drug giant was helped by selling more product at higher prices, although its results were negatively impacted by currency fluctuations.

Express Scripts (ESRX) matched estimates with adjusted quarterly profit of $1.22 per share, with the pharmacy benefit manager's revenue slightly below analyst forecasts. However, the company raised its full year outlook as its growth accelerates.

Pioneer Natural (PXD) lost 64 cents per share in the quarter, smaller than the 78 cents analysts were expecting. But revenue was considerably below estimates on weaker commodity prices. The drilling company did see production rise more than expected during the quarter, and it boosted its full year production outlook.

The Container Store (TCS) matched estimates with per-share profit of 20 cents, with revenue slightly above forecasts. The storage products retailer also announced it was cutting jobs and freezing wages as it tries to restore bottom line growth.


Former Citigroup chief Sandy Weill and his wife, Joan, plan to announce they have given $185 million to the University of California, San Francisco to finance a new center for neuroscience research. (NY Times)

Kevin Durant had strong words about Mavericks owner Mark Cuban after the Oklahoma City Thunder ousted Dallas from the NBA playoffs in Game 5 last night. (USA Today)

Attention, pretzel fans. It's National Pretzel Day. If you're looking to score a free pretzel, you are in luck. There are plenty of restaurants handing out the doughy morsels today. Here's a list. (CNBC)

Related Tags