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Morning Brief

Bank earnings, Fed-speak dominate as US futures soar

Key Points


U.S. stock futures were sharply higher this morning, ahead of a flood of bank earnings. Fed-speak also figures prominently, with Fed Chair Janet Yellen and Boston Fed President Eric Rosengren speaking today. Key reports on the economy are also out. (CNBC)

Ahead of trading Friday, the Dow, S&P 500, and Nasdaq were on track to post back-to-back weekly declines. Wall Street on Thursday closed lower, but were off the worst levels of the session. The Nasdaq was on its longest losing streak in three months. (CNBC)

Dow component JPMorgan this morning topped expectations with earnings and revenue. Meanwhile, Citigroup and Wells Fargo, under siege from its secret account scandal and this week's CEO change, also reports this morning. (CNBC)

Oil was higher this morning, with U.S. crude around the $51 per barrel level. WTI rose on Thursday and was poised for its fourth straight weekly gain. Traders get the weekly read on American production, when Baker Hughes releases its rig count at 1 p.m. ET. (Reuters)

Verizon (VZ) said Yahoo's (YHOO) recent data hack may have been material enough to renegotiate the terms of their takeover deal. Verizon currently has a $4.83 billion agreement in place to buy Yahoo's core internet assets. (Reuters)

Netflix (NFLX) has nabbed Chris Rock for two new stand-up comedy specials. The video streaming service is paying Rock $40 million. Amazon, Hulu, and HBO were also bidding for the specials. (Variety)

United Continental (UAL) suffered a computer glitch that temporarily delayed thousands of United Airlines passengers on flights worldwide. The airline said the problem was resolved late last night. (Reuters)

SoftBank of Japan and Saudi Arabia are partnering to an investment fund, possibly $100 billion, to seek out promising tech companies around the world. (NY Times)

Pinterest said it now has 150 million monthly active users, a 50 percent increase over a year ago. It's likely bigger than Twitter (TWTR) in the U.S. Privately held Pinterest was valued last year at $11 billion. (WSJ)

Alphabet's (GOOGL) Google has introduced a fact checking category to its news service, just ahead of the presidential election. Articles in Google News are labeled and categorized to reflect the type of story. (CNBC)

Donald Trump reportedly plans to claim Mexican billionaire Carlos Slim, a New York Times shareholder and Clinton Foundation donor, was part of a cabal dredging up allegations the GOP nominee touched women inappropriately. (WSJ)

Sen. Elizabeth Warren sent a letter to the White House today, urging President Barack Obama to replace SEC Chair Mary Jo White. Warren revived her call for the SEC to develop a political spending disclosure rule, something she said White refused to to do. (CNBC)

Treasury Secretary Jack Lew told CNBC the Wells Fargo sales scandal isn't as bad as what took place before the financial crisis, but it still points to the need for consumer protections. Wall Street reform should not be rolled back, he added.

Lew also told CNBC that newly announced tax regulations were intended to further limit inversion deals and reduce their appeal for American companies. The requirements are meant to discourage "egregious tax behavior," Lew added.


Investors get a number of key economic reports to consider, including September retail sales and the producer prices, both out at 8:30 a.m. ET. Both mid-October consumer sentiment and August business inventories are released at 10 a.m. ET.

Boston Fed President Eric Rosengren joins CNBC's "Squawk Box" at 7:30 a.m. ET, and then delivers opening remarks at the annual Boston Fed conference at 8:30 a.m. ET. Fed Chair Janet Yellen speaks there at 1:30 p.m. ET.

HP Incorporated (HPQ) issued a cautious 2017 cash flow forecast. The printer and PC maker also plans to cut 3,000 to 4,000 jobs over the next three years. HP did, however, signal hikes in its dividend and its stock buyback program.

Martin Shkreli is heading back to court today. He's been charged with looting his former biotech company to pay back defrauded investors.


Amazon (AMZN) and VMware (VMW) have jointly unveiled a new hybrid cloud service, designed to offer data center services in a private cloud.

Sony (SNE) said its PlayStation unit plans to release five or six smartphone games during the fiscal year that ends in March 2018, games for both Apple's iOS and Google's Android platform.

PepsiCo (PEP) is near a deal to buy KeVita, according to Reuters, as the beverage maker diversifies its soft drink business. KeVita is a maker of sparkling probiotic drinks.

Honeywell (HON) chief David Cote told CNBC he was wrong for not giving a rosier 2017 outlook. He said the upbeat long term message for the company may have gotten lost in a recent management presentation.

Hershey (HSY) CEO John Bilbrey is preparing to step down by next summer, according to Reuters. The chocolate maker's board is said to have already formed a committee to find a successor.