Morning Brief

Modest climb seen for Wall Street after Dow breaks a five-day losing streak

Share
Key Points

BY THE NUMBERS

U.S. stock futures were higher this morning and the Nasdaq appeared poised to break its five-day losing streak, its longest since November 2016. The Dow Jones industrial average managed to break a five-day losing streak with its Wednesday gain. (CNBC)

* Cramer's strategy for dealing with market volatility (CNBC)

Facebook's (FB) stock was 6 percent higher in premarket after the social network reported first-quarter earnings and revenue well above Wall Street forecasts. The company also announced an additional $9 billion in stock buybacks. (CNBC)

* Facebook's cash hoard has more than doubled in two years (CNBC)

PepsiCo (PEP) reported first-quarter earnings of 93 cents per share, beating analysts' expectations by 3 cents. Total revenue rose 4.3 percent to $12.56 billion, outpacing estimates of $12.40 billion, according to Thomson Reuters. (CNBC)

* General Motors earnings: $1.43 per share, vs $1.24 expected (CNBC)

AT&T (T) shares were lower after earnings came in 2 cents shy of estimates, with revenue also falling short. Among other factors, AT&T said its results were hurt by higher wireless equipment costs and a loss in traditional video subscribers. (CNBC)

After-the-bell reports today include Amazon.com (AMZN), Microsoft (MSFT), Intel (INTC), Starbucks (SBUX), Baidu (BIDU), Discover Financial (DFS), Ethan Allen (ETN), Expedia (EXPE), FICO (FICO), First Solar (FSLR), Mattel (MAT), U.S. Steel (X), and Western Digital (WDC). (CNBC)

Two key economic reports are out at 8:30 a.m. ET, with the government issuing weekly initial jobless claims as well as the March durable goods report. Separately, The ECB will issue its latest interest rate decision at 7:45 a.m. ET, followed by ECB President Mario Draghi's news conference at 8:30 a.m. ET. (CNBC)

IN THE NEWS TODAY

The Senate Judiciary Committee is expected to vote on a bill to protect Robert Mueller, the special counsel investigating potential ties between Russia and Trump's 2016 campaign as well as possible obstruction of justice by President Donald Trump. (AP)

* Trump's allies are drowning in legal fees from the Russia probes (CNBC)

Trump's personal lawyer, Michael Cohen, will invoke his Fifth Amendment right in a lawsuit filed against the president by adult film star Stormy Daniels. It allows Cohen to avoid being deposed and reveal sensitive info in the criminal investigation. (NY Times)

* Judge orders hearing in Cohen case as she considers appointing watchdog for Trump files (CNBC)

Dr. Ronny Jackson, Trump's embattled pick for Veterans Affairs secretary, denied a bombshell report that he wrecked a government car while intoxicated. Jackson, who is Trump's personal physician, also said his nomination is "still moving ahead as planned." (CNBC)

North Korean leader Kim Jong Un and South Korean President Moon Jae-in will plant a commemorative tree and inspect an honor guard together at their historic summit. The leaders will meet again in the afternoon and later attend a banquet. (AP)

Russia claimed it has got its hands on a U.S. Tomahawk cruise missile and it's going to study it to improve its own weapon systems. However, the U.S. Department of Defense told CNBC that the claims from Moscow are "absurd." (CNBC)

Deutsche Bank (DB) announced plans to significantly reduce its workforce through the rest of 2018, particularly in its corporate and investment bank and infrastructure functions. The bank posted a 79 percent fall in net profits from last year's figure. (CNBC)

Less than two weeks after his much-publicized return to Twitter, rapper Kanye West made a series of overtures to Trump on the president's favorite social media platform. Kanye told his millions of Twitter followers that he and Trump "are both dragon energy." (CNBC)

STOCKS TO WATCH

Qualcomm (QCOM) reported adjusted quarterly profit of 80 cents per share, ten cents above estimates, with the chipmaker's revenue slightly above forecasts. Qualcomm's results suggest less of a slowdown in the global smartphone market than recent forecasts from suppliers may have suggested.

Visa (V) beat consensus forecasts by nine cents with adjusted quarterly profit of $1.11 per share, while revenue topped forecasts as well. The payment network operator also raised its full-year outlook as global credit card use increases.

Chipotle Mexican Grill (CMG) – The restaurant chain reported quarterly profit of $2.13 per share, compared to the consensus $1.57 estimate. The restaurant chain's revenue was in line with forecasts, amid a 2.2 percent increase in comparable store sales. Chipotle also announced an additional $100 million stock buyback program.

PayPal (PYPL) reported adjusted quarterly profit of 57 cents per share, three cents above estimates, with revenue also above forecasts on increasing mobile payment volume.

WATERCOOLER

LeBron James made a remarkable game-winning shot for the Cleveland Cavaliers in a hard-fought battle against the Indiana Pacers on Wednesday. However, a non-call of a goaltend by James did not sit well with the Pacers or star Victor Oladipo. (Washington Post)