Morning Brief

Stocks set to plunge again after Dow posts biggest single-day point drop in history

Key Points


U.S. Dow futures this morning were indicating another nosedive at the open that breach the correction level, defined as a decline of 10 percent over time from recent new highs. Monday was the worst day for the Dow and S&P 500 since August 2011 as well as the biggest single-day point drop for the Dow in history. Futures have been volatile all night and have been positive at various junctures. (CNBC)

* Why the stock market plunged Monday (CNBC)
* White House says it's 'concerned' about stock market drop (CNBC)
* Cramer: Stop yourself from panicking and find the sell-off's opportunities (CNBC)

The yields on the benchmark 10-year Treasury note and on the 30-year Treasury bond were lower today as investors continued to keep abreast of the volatile trading seen across international and domestic markets. Bond yields move inversely to prices. (CNBC)

The Cboe Volatility index (VIX), widely considered the best gauge of fear in the market, was higher this morning after doubling during regular market hours Monday. The key market measure jumped above 50, its highest level since August 2015. (CNBC)

* Obscure security linked to stock volatility plummets 80% after hours, sparking worries of bigger market effect (CNBC)

European stocks reduced some of their earlier losses after tumbling 3 percent in the early hours of today's session amid inflation growth expectations. The pan-European Stoxx 600 was 1.7 percent lower with every sector in the red. (CNBC)


Economic numbers will get no attention today, but there are a few on the schedule beginning with the December trade deficit at 8:30 a.m. ET. The Labor Department releases its December JOLTS report at 10 a.m., its measure of job opportunities and labor turnover. (CNBC)

Corporate earnings reports this morning include Dunkin' Brands (DNKN), Emerson (EMR) and General Motors (GM). After the bell reports today include Dow component Walt Disney (DIS), Chipotle Mexican Grill (CMG) and Gilead Sciences (GILD). (CNBC)

* Disney looks expensive ahead of earnings, market watcher says (CNBC)

Bitcoin fell below $6,000 to its lowest level in more than two months, according to CoinDesk. The move came amid worries of increased regulation. With the decline, it has now lost more than 50 percent for the year so far. (CNBC)

* Over $550 billion wiped off cryptocurrencies since record high (CNBC)


House GOP lawmakers are proposing a long-term boost to military funding in a short-term spending bill slated for a vote this week. The move is likely to cause tension with some Democrats and complicate plans to keep the government open. (Washington Post)

President Donald Trump's lawyers have reportedly cautioned him not to take wide-ranging questions from Robert Mueller, the special counsel investigating Russian efforts to influence the 2016 election. Trump has publicly said he wants to interview with Mueller. (NY Times)

A House panel has voted to release the Democratic rebuttal to the GOP's accusation that the FBI misled a secret surveillance court. President Trump will have a work week's time to decide to release the information publicly. (Washington Post)

* Carter Page on Nunes memo: 'Worse than I could have possibly imagined' (Politico)
* 'Treasonous': Trump goes after Dems who didn't clap during State of the Union (CNBC)

Vice President Mike Pence was heading to the Winter Olympics in South Korea today. During Pence's visit, Washington wants to keep the focus on North Korea's disregard for calls to halt its nuclear program and convince allies to keep up pressure. (Reuters)

Elon Musk said SpaceX's new Falcon Heavy rocket is unlikely to carry humans to the moon or deeper into outer space. Instead, the company said it will focus on developing an even larger booster announced last year. (WSJ)


Lululemon (LULU) CEO Laurent Potdevin suddenly resigned, with the yogawear maker only saying he had "fallen short of the company's standards of conduct." No further details were given.

BP (BP) posted better-than-expected profits that were more than double year earlier levels. BP's results were helped by higher prices and production, and the energy giant resumed share buybacks after a three-year hiatus.

Toyota (TM) raised its full-year profit forecast by 10 percent, following a quarterly operating profit that was its best in two years. The automaker's results were helped both by stronger sales in Japan and a weaker yen.

Cirrus Logic (CRUS) reported earnings and revenue that fell below Street forecasts, with weaker smartphone sales a key factor. Cirrus supplies chips that are used in Apple's (AAPL) iPhones.

Pfizer (PFE) reported upbeat results in a study involving its Xtandi cancer drug to treat early stage prostate cancer. The drug maker said using Xtandi in combination with standard hormone therapy reduced the risk of the disease spreading by 71 percent compared with just using hormone therapy.

Skyworks Solutions (SWKS) reported earnings that topped Street forecasts as well as announcing a new stock buyback program. However, the chip maker and Apple (AAPL) supplier did issue an outlook that is shy of consensus estimates.


John Mahoney, best known for playing Martin Crane on the popular '90s sitcom "Frasier," has died at the age 77, his manager confirmed. Mahoney won a SAG AWARD and received two Emmy and Golden Globe nominations for his work on the show. (Variety)

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