Morning Brief

Disney likely to interrupt Wall Street rally

Key Points


A surprise earnings miss from Dow stock Walt Disney (DIS) was a key factor weighing on premarket trading. The stock was indicated to shave as many as 40 points off the Dow at the open. The market logged a strong rally Tuesday. (CNBC)

Disney earned $1.36 per share, 4 cents shy of estimates. Revenue fell short as well. The miss comes amid a drop in ad revenue at ESPN, among other factors, and marked the first time in five years Disney earnings fell short of expectations. (CNBC)

In other earnings news, Macy's (M) reports this morning. Meanwhile, Toyota (TM) forecast a 35 percent drop in net profit for its fiscal year ending March 2017. A soaring yen was cited as a key factor, after three years of record profits. (The

Bernie Sanders won Tuesday's West Virginia primary, although the delegates collected won't knock Democratic presidential front-runner Hillary Clinton off the path to the nomination. Kentucky and Oregon hold primaries next week. (CNBC)

About a third of Democratic voters in West Virginia said they would back Donald Trump in the general election, according to exit polls. Trump, the presumptive GOP nominee, won the Republican contests in West Virginia and Nebraska on Tuesday. (NBC News)

Trump said he's narrowed his list of potential running mates to "five or six people," all with deep political resumes. He said he has not ruled out New Jersey Gov. Chris Christie, named to head the billionaire real estate mogul's White House transition team. (AP)

Senate Republicans are demanding an explanation from Facebook (FB) after reports that former staffers excluded links to conservative political stories. The social network said it's found no evidence to support the allegations. (AP)

Staples (SPLS) called off its $6.3 billion buyout of smaller rival Office Depot (ODP), after a federal judge granted the FTC's request for a preliminary injunction on antitrust grounds. Staples will pay Office Depot a $250 million breakup fee.(Reuters)

The owners of the Ultimate Fighting Championship are in advanced talks to sell the business. At least four parties are interested in UFC, the biggest mixed martial arts business in the world. If things proceed, the winning bid is expected to be as much as $4 billion. (ESPN)

Wal-Mart (WMT) is suing Visa (V) for allegedly forcing the retailer to allow customers to use signatures when paying with their chip-based debit cards. Wal-Mart wants to just offer the chip-and-PIN protocol. (CNBC)

Chipotle (CMG) holds its annual meeting today, with activist shareholders seeking board changes after food safety issues this past year hurt the restaurant chain's sales. Meanwhile, Chipotle retained two leading food safety experts. (Reuters)

Hyperloop One has secured another round of funding worth $80 million to develop a system that will transport people through tubes at ultra-high speeds. The company plans a demonstration today in Nevada. (CNBC)

Tesla (TSLA) said the design of its new Model 3 has not been finalized, even though the electric automaker expects to begin building the mass-market sedan within the next 18 months. (Reuters)

Transportation Secretary Anthony Foxx is threatening to suspend the Washington, D.C., subway if the system fails to make immediate changes to fix dangerous safety lapses. (USA Today)

At least 64 people were killed and dozens were wounded in a car bombing in a market in a mainly Shiite neighborhood of Baghdad. The Islamic State terror group claimed responsibility for the attack on social media. (USA Today)


Oil prices, up nearly 3 percent on Tuesday, were basically flat morning, as wildfire-halted Canadian oil sand production was expected to gradually ramp up. Industry data showed record stockpiles. The government releases its weekly crude inventory report at 10:30 a.m. ET.

Gold drifted away from two-week lows this morning, as the dollar came under pressure. Meanwhile, Goldman Sachs (GS) raised its gold forecasts for the coming months to as much as $1,200 per ounce. But that's still 5 percent lower than current levels.

Despite the lowest mortgage rates in nearly three years, total home loan applications increased only 0.4 percent last week, according to the Mortgage Bankers Association. Refis rose 0.5 percent. Holding back buyer enthusiasm are higher prices and continuing lean supply.

Alaska Air (ALK) joins the S&P 500 after Thursday's close. The carrier replaces SanDisk (SNDK), which is being acquired by Western Digital (WDC). Texas Roadhouse (TXRH) moves from the S&P SmallCap 600 to replace Alaska Air in the S&P MidCap 400.


Electronic Arts (EA) earned an adjusted 50 cents per share, 8 cents above estimates, while revenue also easily beat forecasts. The video game maker's "Star Wars Battlefront" title was among the key factors.

Fossil Group (FOSL) fell short of estimates with quarterly profit of 12 cents per share, and so did revenue. The fashion watchmaker also warned on forward guidance, amid increasing competition from smartwatches.

Planet Fitness (PLNT) reported adjusted quarterly profit of 15 cents per share, 2 cents above estimates, while revenue came in above forecasts. The fitness chain also increased its full-year outlook.

Blue Buffalo Pet Products (BUFF) beat estimates by a penny with quarterly profit of 19 cents per share, with revenue above too. The pet food producer also gave strong current quarter and full-year guidance.


Following some of the world's biggest tech firms, adult video website Pornhub is offering hackers a bounty to find security flaws. The rewards range between $50 and $25,000 depending on the severity of the bug. (CNBC)