Morning Brief

Investors hope the new month brings the bulls back

Key Points


U.S. stock futures were starting off November in the green, after the Dow, S&P 500 and Nasdaq in October saw their biggest monthly losses since January. The Dow was on a three-session losing streak, while the S&P and Nasdaq were off five in a row. (CNBC)

Three potentially market-moving events are coming in the next week, including this morning's start of the Fed's two-day November meeting, the government's October jobs report on Friday, and the presidential election next Tuesday. (CNBC)

Dow component Pfizer (PFE) headlines this morning's corporate earnings reports. The drugmaker slightly missed expectations with earnings. Revenue was basically in line. But Pfizer issued light forward guidance. (CNBC)


Donald Trump used a tax avoidance strategy so "legally dubious" that his own lawyers advised him the IRS would consider the move improper, according to The New York Times, which cites newly obtained documents from the 1990s. Congress banned the practice in 2004.

The FBI has been conducting a preliminary inquiry into the foreign business connections of former Trump campaign manager Paul Manafort, law enforcement and intelligence sources told NBC News. Manafort said he's unaware of any investigation.

FBI Director James Comey argued privately not to name Russia as meddling in the U.S. election because the voting was so close, an ex-bureau official told CNBC. Hillary Clinton aides accused Comey of a "double standard" in revealing a renew interest in candidate's emails.

Clinton's 6-point national lead over Trump remains virtually unchanged since last week, even after FBI email bombshell, according to NBC News|SurveyMonkey weekly election tracking poll from the weekend, which included questions about Friday's move by Comey.

China has rejected a plan by Trump to back out of a global climate change pact, saying a wise political leader should make policy in line with global trends, a rare comment on a foreign election. (Reuters)


Yum Brands (YUM), which owns Taco Bell, KFC and Pizza Hut, is spinning off its China business today. Yum China Holdings (YUMC) is set to start trading on the NYSE this morning. The CEOs of Yum and Yum China join CNBC's "Squawk on the Street" after the opening bell.

Sony (SNE) reported a nearly 86 percent drop in quarterly profit compared with a year earlier. The bottom line was impacted by a stronger yen, costs from the sale of its battery business, and softness in key areas like games and semiconductors. (CNBC)

Wells Fargo (WFC) has agreed to pay $50 million to settle a case involving home appraisal feels for homeowners who had defaulted on their mortgages. A court must still approve the settlement. (CNBC)

Valeant (VRX) shares in the premarket were recovering some of Monday's 12 percent loss. The stock was hit by a Bloomberg report that ex-CEO Michael Pearson and ex-CFO Howard Schiller were subjects of a U.S. criminal investigation.

Viacom (VIAB) named Bob Bakish as its new acting chief executive officer, replacing the current acting CEO Tom Dooley. Bakish has been the CEO of Viacom's International Media Networks unit. (Reuters)

BlackBerry (BBRY) has agreed to work directly with Ford (F) to expand the carmaker's use of its QNX secure operating system. It's BlackBerry's first direct deal with a major automaker, though it does sell its car technology to auto suppliers. (Reuters)

A union representing about 4,700 transit workers in Philadelphia went on strike early this morning, after failing to reach a contract agreement. City officials fear the strike could carry over to Election Day. (USA Today)

Travelers who haven't purchased Thanksgiving airline tickets yet better not wait. Fares jump by about $4 per day, on average, approaching the holiday, and late last week, a new airfare hike got underway. (USA Today)


Major hedge funds had a mixed October. CNBC has learned that Dan Loeb's Third Point was down 0.7 percent last month, while David Einhorn's Greenlight Capital was up 1.2 percent in October. Both were up about 6 percent for the year. Bill Ackman's Pershing Square was down 3 percent through Oct. 25, and off more than 21 percent for the year.

The October ISM manufacturing index is the biggest economic report of the day, out at the 10 a.m. ET. At the same time, the government releases its construction spending report for September.

October U.S. vehicle sales roll in throughout the day, with one exception: due to a fire at its headquarters, Ford (F) won't release its numbers today, but hopes to do so later this week.

In addition to this morning's earnings reports, Electronic Arts (EA), Papa John's (PZZA), US Steel (X), Texas Roadhouse (TXRH), Western Union (WU) and Zillow (ZG) issue quarterly results after the bell this afternoon.

Tesla (TSLA) will hold a webcast at 5 p.m. ET today regarding its planned acquisition of SolarCity (SCTY).


BP (BP) reported net profit for the third quarter of $1.62 billion, trouncing the consensus expectation of $686 million, but still only delivering around half of last year's result for the period.

Royal Dutch Shell (RDS.A) issued better-than-expected earnings for its third quarter, but gave a cautious outlook, as the oil giant continues to struggle in an environment of low oil prices.

Anadarko Petroleum (APC) lost 89 cents per share, wider than the 57-cent loss forecast by analysts. Revenue was also below estimates, on the continuing weakness in energy prices.

L Brands (LB) said October comparable store sales are expected to be up 1 percent. The apparel maker also said third quarter earnings would come in at the low end of estimates.

Tenet Healthcare (THC) reported quarterly profit of 16 cents per share, missing estimates by 3 cents and lowered its full-year revenue and profit forecasts. Quarterly revenue did beat expectations.


It's been 108 years since the Chicago Cubs were able to call themselves World Series champions. If they wish to end their epic drought, they'll have to win the next two games in Cleveland against the Indians, starting with Game 6 tonight. (USA Today)

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