Morning Brief

Wall Street is set for a higher open after Apple pops on earnings beat

Key Points


Futures were higher this morning, continuing the momentum that saw the S&P 500 and Nasdaq erase mid-session losses Tuesday and the Dow finish well off its lowest levels of the session. The Dow is still riding a three-day losing streak. (CNBC)

* Market correction of 30-40% could be coming soon: Mark Mobius (CNBC)

Apple (AAPL) stock popped 3 percent in premarket after the tech giant reported quarterly earnings that beat expectations but sold fewer iPhones than expected. It also increased its quarterly dividend by 16 percent and announced a $100 billion buyback program. (CNBC)

* Apple's cash hoard falls to $267.2 billion (CNBC)
* Apple will buy back up to $100 billion worth of shares (CNBC)
* Cramer reflects on Apple earnings after speaking with CEO Tim Cook (CNBC)

Snap (SNAP) stock was down 16 percent in premarket after it missed revenue forecasts and its forward guidance and daily active users were weaker than estimates as well. That follows a redesign of the Snapchat app that's received a mixed reaction. (CNBC)

The Fed will issue its latest interest rate decision and statement at 2 p.m. ET, with investors not expecting an interest rate hike this time around. There is no post-meeting news conference today, but there will be one after the next policy meeting on June 12 and 13. (CNBC)

* Fed could surprise markets and change investors' minds on how many rate hikes are coming (CNBC)

Ahead of the Fed, a possible market-moving report will come at 8:15 a.m. ET, when ADP releases its monthly look at private sector employment. Earlier, a Mortgage Bankers Association report showed application volume fell 2.5 percent for the week.

ADP (ADP) is also out with quarterly earnings this morning, along with CVS Health (CVS), Humana (HUM) and much more. After-the-bell reports today include AIG (AIG), Express Scripts (ESRX) and Tesla (TSLA). (CNBC)


Trump administration officials are racing to meet self-imposed deadlines to complete negotiations with China and other trading partners. A trade delegation left for China hoping to glean trade concessions from Beijing. (WSJ)

* Chinese state media has a message for the US ahead of trade talks in Beijing (CNBC)

Special Counsel Robert Mueller raised the possibility of issuing a subpoena for President Donald Trump if he declines to talk to investigators in the Russia investigation, according to the Washington Post, citing four people familiar with the matter.

* Triggered Trump on Mueller warpath (Axios)
* Why talking to Mueller could be a minefield for Trump (NY Times)

Trump's former doctor, who stated his client would be the "healthiest individual ever elected to presidency," has now said that Trump dictated the whole letter. The doctor added that the claims over Trump's health were not based on his physical examination. (CNBC)

Deputy Attorney General Rod Rosenstein hit back against GOP lawmakers who drafted articles of impeachment against him, saying the DOJ "is not going to be extorted." He said that the reported articles of impeachment are only the latest threats against him. (CNBC)

French President Emmanuel Macron, who visited Washington last week, said he was unsure whether Trump would stick to the Iran nuclear deal that many see as the best hope of preventing Tehran from getting a nuclear bomb. (Reuters)

American troops will remain in South Korea even if a deal is reached to formally end the Korea War, a South Korea official said. North Korea previously made giving up its nuclear weapons conditional on the troops leaving the peninsula. (BBC)

The Centers for Disease Control and Prevention found the number of people getting diseases transmitted by mosquito, tick and flea bites has more than tripled in the U.S. in recent years. Warmer weather is a factor in the surge. (NY Times)

United Airlines (UAL) will scale back its animal transportation program after several pet deaths and mix-ups. Under the new policy, United will only transport dogs and cats in the cargo hold. Several short-nosed dog breeds are not allowed, however. (CNBC) (AMZN) is planning new benefits for Prime members who shop at its Whole Foods unit, according to sources who spoke to CNBC. Among them: an additional 10 percent off already-discounted products at the supermarket chain.

* Amazon makes offer for a majority stake in Indian e-commerce player Flipkart (CNBC TV-18)

Facebook (FB) CEO Mark Zuckerberg announced the social network will launch a dating feature that will match users specifically with people they aren't already friends with. Users can build a dating profile that friends won't be able to see. (CNBC)

* Facebook commits to civil rights audit, political bias review (Axios)

Twitter (TWTR) users erupted into a frenzy after American rapper Kanye West told TMZ Live that slavery "sounds like a choice." TMZ's Van Lathan interjected with, "I think what you're doing right now is actually the absence of thought." (USA Today)


Xerox (XRX) CEO Jeff Jacobson and most of the company's board will step down as part of a settlement with major Xerox shareholders Carl Icahn and Darwin Deason. The settlement comes after Icahn and Deason won a court order temporarily blocking the office equipment maker's plan to sell a controlling stake to Japan's Fujifilm.

Gilead Sciences (GILD) fell 19 cents shy of estimates with adjusted quarterly profit of $1.48 per share, and the biotech company's revenue also fell short of Street forecasts. The results were hurt by a bigger than expected drop in sales of Gilead's hepatitis C drugs.

T-Mobile US (TMUS) reported quarterly profit of 78 cents per share, seven cents above estimates, with the wireless carrier's revenue also above forecasts as it added more subscribers.

Mondelez International (MDLZ) edged out consensus estimates by a penny with adjusted quarterly profit of 62 cents per share, while the snack maker also saw revenue come in above forecasts. Mondelez also said it saw "encouraging" growth prospects.


HBO has renewed its heavily dissected sci-fi drama "Westworld" for a third season. HBO premiered the first episode of the show's second season late last month, bringing in 3 million viewers across multiple platforms. (Hollywood Reporter)