Dow futures sink—Trump victory, jobs also in focus

IN THE NEWS TODAY

U.S. stock futures were sharply lower this morning, after Tuesday's decline on Wall Street wiped out the strong start to May and then some. The Nasdaq was about 1 percent away from a correction. But the Dow and S&P 500 were still about 7 percent from correction territory. (CNBC)

Oil prices were steady this morning, after industry data showed a smaller-than-expected build in stockpiles. The Energy Department releases its Wednesday assessment of oil and gasoline inventories at 10:30 a.m. ET. (Reuters)

Donald Trump became the likely GOP presidential nominee, after top rival Ted Cruz withdrew from the race. Cruz threw in the towel after it became clear last night that Trump would easily win the Indiana primary. (NBC News)

While Indiana played out as expected with a Trump victory, Democratic presidential hopeful Bernie Sanders surprised Hillary Clinton who had been leading in recent statewide polls. Though Clinton still has a wide delegate buffer over Sanders. (CNBC)

Under pressure from U.S. regulators, Japanese airbag maker Takata is expected to recall up to 40 million additional inflators without a certain drying agent in U.S. vehicles. Nearly 29 million inflators have already been recalled due to explosion risks. (Reuters)

Electric automaker Tesla (TSLA) is expected to report a wider first-quarter loss after the bell this afternoon. But sales are seen climbing 50 percent. Tesla shares were down about 3 percent year-to-date, compared to the nearly 1 percent gain for the S&P 500. (Reuters)

Fiat Chrysler (FCAU) has struck a partnership with Alphabet's (GOOGL) Google unit to build a fleet of 100 self-driving minivans. There are no plans to sell the vehicles, though; the two sides are working together to build vehicles for testing. (CNBC)

Apple CEO Tim Cook told CNBC the tech giant has always worked with law enforcement, as long as a valid warrant was presented. He said the San Bernardino request differed because Apple was being asked to create a product that could have put millions of users at risk.

The new version of Hulu wants to anticipate viewer preferences on each device and automatically stream their favorite show upon opening up the app. (NY Times)

Time Warner (TWX) earned an adjusted $1.49 per share for the first quarter, 19 cents above estimates, with revenue slightly above forecasts. The bottom line was helped by earnings growth at the HBO and Turner units. (CNBC)

CBS (CBS) reported quarterly earnings of $1.02 per share, 8 cents above estimates, with revenue slightly above forecasts. CBS was helped by a surge in ad spending, due in part to the Super Bowl as well as the presidential campaign. (AP)

Under Armour (UA) is replacing its chief merchandising officer and chief digital officer. Meanwhile, the company has signed Washington Nationals star Bryce Harper to a new 10-year extension, believed to be the biggest endorsement deal ever for a baseball player. (NY Post)

Medivation (MDVN) has been approached by New York-based Pfizer (PFE) about a possible acquisition. The San Francisco cancer drug maker has already turned down a $9.3 billion by France's Sanofi (SNY), saying the bid undervalues Medivation. (Reuters)

Vale (VALE) and BHP Billiton (BHP) are facing one of Brazil's largest ever civil lawsuits after prosecutors demanded $44 billion in damages for the deadly dam collapse at their mine last year that unleashed a flood of waste-filled mud across two states. (FT-subscription)

The entire population of the Canadian oil sands city of Fort McMurray, Alberta — more than 80,000 residents — has been ordered to evacuate as a wildfire whipped by winds engulfed homes and sent ash raining down on residents. (AP)

Prince was found dead one day before he was scheduled to meet with a California doctor in an attempt to kick an addiction to painkillers, according to an attorney with knowledge of the death investigation. (StarTribune)

BY THE NUMBERS

The 8:15 a.m. ET release of the ADP's look at private sector employment kicks off the rest of this week's focus on the labor market. Economists expect 196,000 new jobs were created at U.S. companies in April. Tomorrow, the government issues weekly jobless claims, and then the April jobs report on Friday morning.

There are two other major economic reports out this morning: the government's March trade deficit data 8:30 a.m. ET and the ISM's nonmanufacturing index at 10 a.m. ET.

Minneapolis Fed President Neel Kashkari is set to moderate a discussion on "too big to fail." The event is scheduled for 6:30 p.m. ET. Kashkari believes banks would still need to be bailed out in another financial crisis even though post-2008 regulations have helped them to become healthier.

Another small uptick in bond yields last week was again enough to hold borrowers back from applying for a mortgage. Total application volume fell 3.4 percent, according to the Mortgage Bankers Association. Refi demand dropped 6 percent.

This afternoon, besides Tesla, 21st Century Fox (FOXA), Kraft Heinz (KHC), TripAdvisor (TRIP), Whole Foods (WFM), and Zynga (ZNGA) are among the major after-the-bell earnings reports.

STOCKS TO WATCH

Priceline Group (PCLN) reported adjusted quarterly profit of $10.54 per share, outdistancing estimates of $9.65. However, the company's current quarter forecast was well below estimates. Last week, Priceline CEO Darren Huston resigned, following an investigation linked to a personal relationship he had with an employee who was not under his direct supervision.

Zillow (Z) lost 13 cents per share for its latest quarter, 4 cents wider than expected, but revenue for the real estate website operator was higher than forecasts as its user base grew. Zillow also increased its revenue forecast for the full year.

Etsy (ETSY) earned a penny per share, compared to forecasts for a 2 cent loss. It's the handmade goods seller's first quarterly profit since it went public a year ago. Revenue was also well above estimates. Etsy was able to slow down growth in its marketing costs.

Match Group (MTCH) reported quarterly earnings of 11 cents per share, 3 cents above estimates, while revenue was also above forecasts. The dating service website operator saw its paid member count rise 36 percent above a year ago to 5.1 million, primarily due to growth at its Tinder service.

Avis Budget (CAR) posted a 28 cent per share loss for its first quarter, 20 cents wider than expectations. Revenue for the car rental company did match estimates, and its full-year revenue projection was above forecasts as well.

Anheuser-Busch InBev (BUD) saw profit dip to $844 million for its latest quarter, down from $2.3 billion a year ago, due in part to weak sales in Brazil for the beer brewing giant. Anheuser-Busch is in the process of buying SABMiller for $100 billion.

Cablevision's (CVC) planned acquisition by French telecom company Altice has been approved by the Federal Communications Commission. The $17.7 billion deal still needs the approval of New York State and New York City. The FCC said it found the transaction was in the "public interest."

Target (TGT) is tightening deadlines, raising fines for late deliveries, and implementing several other steps regarding its suppliers, according to Reuters, as it tries to improve its competitive position against the likes of Wal-Mart (WMT) and Amazon.com (AMZN).

WATERCOOLER

Break out the lightsabers. It's the official, unofficial "Star Wars" fan holiday, May the Fourth. To mark the occasion, Netflix (NFLX) will feature "Star Wars: The Force Awakens" on demand. (USA Today)

The 142nd running of the Kentucky Derby is this Saturday, but the action at Churchill Downs Racetrack kicks off today with the draw for post positions in the Run for the Roses. (USA Today)