×

US stock futures point to a flat open as Wall Street awaits tax plan

IN THE NEWS TODAY

U.S. stock futures were flat this morning after the Nasdaq closed above 6,000 for the first time ever. Tuesday's strong rally also pushed the Dow and S&P 500 closer to record highs. The Dow and S&P also saw their biggest back-to-back advances since the November election. (CNBC)

Dow stocks Boeing (BA), Procter & Gamble (PG), and United Technologies (UTX) are out with earnings this morning.

Boeing reported profit of $2.01 per share, 7 cents a share above estimates. Revenue was slightly below forecasts, and the company reported much better-than-expected free cash flow figures for the quarter.

United Technologies came in 9 cents a share above estimates, with adjusted quarterly profit of $1.48 per share. Revenue was also above forecasts and the company saw higher sales in all four of its business units.

Procter & Gamble reported adjusted quarterly profit of 96 cents per share, two cents a share above estimates. Revenue was slightly below forecasts. P&G is citing a stronger dollar and political uncertainty among the factors holding back its results.

Twitter (TWTR) was surging as much as 10 percent in premarket trading after beating estimates with earnings after several quarters of disappointing results. Forward guidance, however, was worse than expected. (CNBC)

Steep tax cuts to 15 percent in the U.S. corporate rate and 10 percent for repatriated offshore corporate profits are expected to be part of President Donald Trump's tax reform plan, which is due to be released at 1:30 p.m. ET. (CNBC)

Republicans are floating a government spending deal that does not include money for Trump's southern border wall, moving negotiations forward ahead of this week's government shutdown deadline. (NBC News)

President Donald Trump invited all 100 senators to attend a briefing today on North Korea, as the standoff escalates over the reclusive nation's development of nuclear weapons and long-range ballistic missiles. (Reuters)

China's first domestically built aircraft carrier was launched today in the latest display of Beijing's growing naval power, just three days after the 68th anniversary of the People's Liberation Army Navy. (SCMP)

A federal judge in San Francisco has blocked a Trump administration order to withhold funding from so-called sanctuary cities, communities that limit cooperation with U.S. immigration authorities. (AP)

President Trump is set to sign an executive order today, calling into question the future of dozens of national monuments proclaimed by the last three presidents to set aside millions of acres from development. (USA Today)

Ajit Pai, the new Republican chairman of the FCC, is expected to unveil today his game plan for revamping the net neutrality rules passed during the Obama administration. (USA Today)

Former President Barack Obama has accepted a $400,000 speaking fee from Cantor Fitzgerald for a keynote address at the investment bank's September health-care conference. (FT)

U.S. Steel (X) was sinking about 16 percent in the premarket after reporting a loss when analysts had expected a profit. Revenue also missed and the company issued a weaker full-year guidance. (RTT News)

Wynn Resorts (WYNN) plans to start construction as early as December on the first phase of its $1.5 billion Paradise Park. Meanwhile, Wynn exceeded estimates on earnings and revenue. (CNBC)

Chipotle (CMG) reported profit of $1.60 per share, beating estimates by 33 cents. Revenue and same store sales were slightly above. Chipotle also disclosed a data breach in its payment systems during the past month. (CNBC)

Consumer Reports, which has historically praised Tesla's (TSLA) Model S and Model X, is cutting its ratings for both vehicles due to the electric automaker's failure to update the software for certain versions. (CNBC)

McDonald's (MCD) is dropping its plan to sell shares in its Japan operations, which recently returned to profitability after three years of losses. The fast food giant on Tuesday reported better than expected quarterly results. (Nikkei)

BY THE NUMBERS

A strangely confident market move could speak to much more upside ahead for stocks. Since the beginning of 1981, the S&P has only seen a low above the prior session's high in 1.5 percent of sessions, according to a technical analyst on CNBC's Trading Nation.

The economic calendar pauses today ahead of an extremely busy Thursday and Friday. The Energy Department is out with its weekly report on oil and gasoline inventories at 10:30 a.m. ET.

Refinancing came back to life last week, as home loan rates fell further. Homebuyers, however, were not as easily swayed, according to the Mortgage Bankers Association's weekly data.

Dealing with a tightening labor market, Tyson Foods (TSN) is considering raising wages for its poultry plant workers, on top of a 3 to 3.5 percent wage hike that it gave workers in November.

Costco (COST) announced a $7 per share special dividend, payable on May 26 to shareholders of record on May 10. The warehouse retailer also raised its regular quarterly dividend to 50 cents per share from 45 cents.

Deckers Outdoor (DECK) is exploring strategic alternatives, with the footwear maker hiring Moelis & Co. as a financial advisor. Activist investors have been urging the maker of UGG boots to look at a possible sale.

STOCKS TO WATCH

PepsiCo (PEP) beat estimates by 2 cents a share, with adjusted quarterly profit of 94 cents per share. Revenue also beat forecast. The results were aided by stronger pricing, although PepsiCo is giving a full-year earnings forecast that falls slightly below estimates.

AT&T (T) matched forecasts with adjusted quarterly profit of 74 cents per share. However, revenue fell short of estimates, and AT&T also surprised analysts by losing postpaid subscribers during the first quarter.

Alcoa spinoff Arconic (ARNC) reported better-than-expected quarterly profits and revenue, helped by strength in transportation and rolled products. The aerospace and carmaker supplier affirmed full-year guidance.

Edwards Lifesciences (EW) beat expectations on earnings and revenue. The medical device maker also raised its full-year outlook on strong sales of its transcatheter heart valve replacements.

Texas Instruments (TXN) exceed estimates on earnings and revenue. The chipmaker also gave upbeat current quarter guidance on strong demand in its automotive and industrial segments.

Logitech (LOGI) beat estimates in its latest quarter, and the maker computer peripheral products said it was considering acquisitions to help it accelerate growth and move into new product areas.

IRobot (IRBT) more than doubled the 27 cents per share profit estimate, Revenue also beat. The Roomba vacuum cleaner maker also raised its full-year earnings and revenue guidance.

Panera (PNRA), in the process of being acquired, saw its quarterly profits match estimates. The restaurant chain's revenue beat forecasts as its comparable store sales rose 5.3 percent from a year earlier.

WATERCOOLER

Nordstrom (JWN) is selling a pair of Barracuda Straight Leg Jeans for $425, and they come with a "caked-on muddy coating," to make it look like "you're not afraid to get down and dirty." (CNBC)