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Morning Brief

Dow and S&P try to avoid a 3 day losing streak

Key Points


U.S. stock futures were lower, indicating a possible third straight down day for the Dow and S&P 500. Both were around breakeven for the week. The Nasdaq was coming off its first decline in five sessions, but still on pace for its 10th weekly gain in 11 weeks. (CNBC)

U.S. oil prices were lower this morning, ahead of the 1 p.m. ET release of the Baker Hughes rig count, which has risen nine of the last 10 weeks. Crude soared more than 4.6 percent Thursday, but still held below the $50 per barrel level. (CNBC)

North Korea said it tested a miniaturized nuclear warhead today, as protection against "threats and sanctions." President Barack Obama promised "serious consequences" for provocative actions. The nuclear test was the rogue nation's fifth. (CNBC)

China, the only ally of North Korea, quickly urged restraint after the nuclear test. State-run news officials said the move was "unwise," another sign of Beijing's growing frustration with Pyongyang. (CNBC)

Hillary Clinton meets today with a bipartisan group of former national security officials, including ousted former CIA Director David Petraeus and former George W. Bush Homeland Security chief Michael Chertoff. (Politico)

Donald Trump's campaign has reaffirmed its embrace of Russian President Vladimir Putin, signaling a preference for the leadership of the authoritarian adversary over President Barack Obama. (NY Times)

Airline passengers should not turn on or charge their Galaxy Note 7 smartphones during flights or stow them in checked baggage due to concerns over the Samsung device's fire-prone batteries, the FAA said. (Reuters)

Samsung is asking a U.S. judge for permission to pay cargo handlers to remove its goods from Hanjin Shipping's vessels stationed near U.S. ports. The failure of container carrier giant has stranded about $14 billion in cargo around the globe. (Reuters)

Preorders opened today for the iPhone 7 and 7 Plus, and Apple Watch Series 2. The new devices go on sale next Friday. But the new AirPod wireless headphones are not due out until late October. (USA Today)

The future of Twitter (TWTR) remains a subject of speculation. The New York Post reports that contrary to rumor, investor Carl Icahn is not building a stake in the company. CNBC had reported earlier this week that no takeover bids have come in for Twitter.

Honest Company, the personal care product company co-founded by the actress Jessica Alba, has been in talks to sell the company. Sources indicated the buyer is likely to be a big consumer product company. (Recode)

Airbnb, the online home rental marketplace, is taking steps to promote more inclusive lodgings on its site after facing accusations from renters who say they were discriminated against by hosts because of race or other characteristics. (WSJ)

Wells Fargo (WFC) has agreed to pay $185 million in penalties and $5 million to customers who regulators say were pushed into fee-generating accounts they never requested. (Reuters)

Chipotle Mexican Grill (CMG) settled cases with more than 100 customers who became ill after eating at the restaurant chain, according to lawyers for those customers. Terms of the settlements were confidential. (Reuters)

Chipotle and Google parent Alphabet's Project Wing are launching a pilot program to deliver burritos via drones to Virginia Tech students in Blacksburg. The drones will hover in the air and deliver their cargo using a winch. (Bloomberg)

NASA launched a spacecraft skyward last night on an ambitious seven-year voyage to intercept an asteroid more than 100 million miles from Earth, scoop up a piece of it and bring the sample home. (Washington Post)


There's one economic report on the Friday calendar. The government releases wholesale inventories for July 10 a.m. ET, with forecasts calling for a 0.1 percent increase following a 0.3 percent rise in June.

Boston Fed President Eric Rosengren speaks at 7:45 a.m. ET, while Dallas Fed President Rob Kaplan speaks at 9:30 a.m. ET and 8:15 p.m. ET. Meanwhile, Fed Gov. Daniel Tarullo will be on CNBC at 10 a.m. ET.

Supermarket Kroger (KR), homebuilder Hovnanian (HOV), and retailer Mattress Firm (MFRM) are on the short earnings list this morning. There are no major companies reporting quarterly results after the bell.

The NYSE implements changes to its opening procedures on Monday, hoping to speed up trading and efficiency, even on volatile days. The new rules were sought following the flash crash in August 2015, when the Dow dropped 1,000 points in a ten-minute period.


Restoration Hardware (RH) reported adjusted quarterly profit of 44 cents per share, 15 cents above estimates. Revenue also beat. The luxury home goods retailer said the strong results were due to being able to ship products earlier than anticipated.

Finisar (FNSR) reported adjusted quarterly profit of 38 cents per share, 8 cents above estimates. Revenue was also above. The fiber optics firm also gave a stronger-than-expected current quarter forecast.

Deutsche Bank (DB) is expected to settle U.S. mortgage-backed securities cases for more than $2.4 billion, according to a German magazine, which said the DOJ plans to send a formal notice to the bank next week.

Pipeline firm Enterprise Products Partners (EPD) is no longer interested in a merger with rival Williams Cos. (WMB). Enterprise said it did approach Williams about a potential deal, but found there was "no actionable path forward."

Advanced Micro Devices (AMD) priced its recently announced secondary stock offering at $6 per share, raising a more than expect $600 million. The chipmaker's $700 million offering of convertible notes also priced, with the initial conversion price at $8 per share.


No. 1-ranked Serena Williams lost for the second straight year in the semifinals at the U.S. Open, missing an opportunity to win a record 23rd tennis grand slam title. (USA Today)

The Denver Broncos rallied to defeat the Carolina Panthers, 21-20, before a hometown crowd in last night's NFL opener. It was a rematch of Super Bowl 50, which also went to Denver. (USA Today)