Morning Brief

Wall Street, on jobs Friday, looks to register another positive week

Key Points


U.S. stock futures were modestly higher this morning ahead of the release of the government's monthly jobs report. The Dow is on pace for an eighth consecutive weekly rise, and the Nasdaq is on track for a sixth weekly gain. But the S&P 500 is hovering right around break-even for the week. (CNBC)

The October jobs report is out at 8:30 a.m. ET. Forecasts call for 315,000 new non-farm jobs last month, with the unemployment rate holding steady at 4.2 percent. The September trade deficit is also issued at 8:30 a.m. ET. (CNBC)

Apple (AAPL) shares rallied in the premarket this morning with the tech giant passing a market value of $900 billion. On the eve of the iPhone X going on sale, Apple reported quarterly earnings and revenue that beat expectations and issued strong forward guidance. The company sold more iPhones than expected during the quarter. (CNBC)

* Thousands are lining up for the iPhone X around the world (CNBC)
* Thieves steal more than $300,000 worth of new iPhones in San Francisco (CNBC)

Starbucks (SBUX) shares were under pressure after matching estimates on quarter earnings but missing on revenue and warning on outlook. The coffee giant also announced plans to sell its Tazo tea brand to Unilever for $384 million. (CNBC)

U.S. oil prices were higher this morning after Thursday's modest advance pushed WTI crude to its highest level since July 2015. Oil is on track for its fourth positive week in a row and its eighth weekly advance in the past nine. (Reuters)


President Donald Trump tweeted early this morning on the 11-minute deactivation of his account by a rogue Twitter employee. "I guess the word must finally be getting out-and having an impact," the president tweeted. (CNBC)

Beset by challenges at home, Trump today embarks on the longest trip to Asia by an American president in more than a quarter-century, looking for help to pressure North Korea to stand down from a nuclear crisis. (Reuters)

* China says it's world's 'new role model,' calls for constructive dialogue (CNBC)
* Trump to meet with governors of Alaska, Hawaii, and Pacific U.S. territories (USA Today)

The president has nominated Jerome Powell to run the Fed once current Chair Janet Yellen's term expires in February, in a move widely expected and one unlikely to disturb the roaring stock market. (CNBC)

* What Jerome Powell means for your pocketbook (CNBC)

House Republicans have unveiled their plan to overhaul the tax code in what could be the biggest rewriting of the system in decades. The bill would include lowering the corporate rate and slash income tax brackets from seven to four. (CNBC)

* Trump on tax reform: It's a 'great day for the American worker' (CNBC)
* Democrats waste no time slamming 'catastrophic' tax plan (CNBC)

A former Trump campaign official linked to the Russia investigation by Special Counsel Robert Mueller has withdrawn his nomination for an agriculture post. Sam Clovis said he did "not want to be a distraction or a negative influence." (AP)

* Judge orders former Trump aides to stay under home arrest (Reuters)
* Sen. Warren agrees that the DNC was 'rigged' in Clinton's favor (USA Today)

Without providing evidence, the Islamic State group claimed responsibility last night for the New York City attack this week that left eight people dead and wounded others. The suspect of the attack is currently being held without bail. (USA Today)

New research suggests that heart stents, a popular treatment for chest pain, may be useless for many people. The study published in The Lancet stunned leading cardiologists by countering decades of clinical experience. (NY Times)

Amazon (AMZN) is ending its Fresh grocery delivery service for select zip codes, though it continues to operate in a range of cities from Los Angeles to Tokyo. Its acquisition of Whole Foods is expected to play a key role in delivery going forward. (Reuters)

Sprint (S) and T-Mobile (TMUS) are reportedly working to salvage their proposed merger. Earlier, reports surfaced that SoftBank was planning to break off negotiations over disagreements on which side would control the combined company. (WSJ)


CBS (CBS) beat estimates by four cents with adjusted quarterly profit of $1.11 per share, although the media giant's revenue missed forecasts. Ad revenue did fall by 3 percent with the quarter containing one less NFL broadcast than the year-ago quarter.

AIG (AIG) lost $1.22 per share for its latest quarter, wider than the 79 cent loss that Wall Street was expecting. Revenue missed forecasts, as the insurance company absorbed sizable hits from Hurricanes Harvey, Irma, and Maria.

Activision Blizzard (ATVI) reported adjusted quarterly profit of 60 cents per share, 11 cents above estimates, with the videogame maker's revenue also topping forecasts. Activision also raised its full-year forecast, with results boosted by the success of its "Destiny 2" game.

Pandora (P) posted a quarterly loss of 6 cents per share, 2 cents smaller than Wall Street had projected, but the streaming music service's revenue came in below forecasts. Pandora is facing intense competition from services like Spotify and Apple Music, and is having difficulty increasing ad sales.

Tableau Software (DATA) fell a penny short of expectations with an adjusted quarterly profit of eight cents per share, and the analytics software maker also posted a revenue miss and gave a downbeat current quarter forecast. Tableau's short-term results are being impacted by its ongoing shift to a subscription model.


Rating service Nielsen says that 15.8 million Americans watched the first episode of Netflix's (NFLX) second season of "Stranger Things," and the company has hyped it as a phenomenon. Nielsen also says 361,000 U.S. subscribers watched all nine episodes last Friday. (USA Today)

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