Morning Brief

Wall Street is set to continue Friday's stock rally at the open

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BY THE NUMBERS

Futures were higher this morning following a Friday rally that saw the Dow rise 332 points, or nearly 1.4 percent, and the S&P 500 jump 1.3 percent. Investors remain somewhat cautious in a rising interest rate environment and with crude oil rising to its highest in 3.5 years. (CNBC)

Starbucks (SBUX) will be paid $7.15 billion by Nestle (NSRGY) for the rights to sell the coffee chain's products around the world. Nestle is taking on about 500 Starbucks employees as part of the deal. Shares of Starbucks were up about 3 percent in the premarket. (Reuters)

Earnings reports out this morning include the latest numbers from Cognizant Technology (CTSH), EW Scripps (SSP), Gannett (GCI), Sysco (SYY), Tyson Foods (TSN), and Willis Towers Watson (WLTW). AMC Entertainment (AMC), Envision Healthcare (EVHC), Hertz Global (HTZ), Mosaic (MOS), and Zillow (ZG) are out with their quarterly numbers after today's closing bell. (CNBC)

There are two Fed speeches on the calendar today. Chicago Fed President Charles Evans and Dallas Fed President Robert Kaplan both speak at an Atlanta Fed conference in Amelia Island, Florida. Neither is a voting member of the FOMC policymaking panel for 2018. (CNBC)

WARREN BUFFETT WATCH

Berkshire Hathaway (BRKB) is in the spotlight following its widely-watched annual meeting over the weekend. CNBC's Becky Quick will be live in Omaha with Berkshire's Warren Buffett for all three hours of Squawk Box this morning, until 9 a.m. ET.

* Warren Buffett: $10,000 invested in an index fund when I bought my first stock in 1942 would be worth $51 million today (CNBC)

The billionaire investor Buffett, at Berkshire's 2018 annual shareholder meeting over the weekend, said that he made mistakes by not investing in two dominant technology companies, Alphabet (GOOGL) and Amazon (AMZN). (CNBC)

* Check out what was on display at Berkshire Hathaway's annual meeting (CNBC)

Apple (AAPL) shares could be on watch once again, after Buffett said he would buy more Apple shares at the right price. Buffett revealed Friday that Berkshire had bought 75 million more Apple shares during the first quarter. Apple closed the week at $183.83, up 13.3 percent in its best week since October 2011. (CNBC)

Buffett's Berkshire (BRK.A) will make about $700 million a year from its Apple holdings just by collecting dividends. The Oracle of Omaha told CNBC that long-term investors of Apple's stock shouldn't obsess with near-term iPhone sales.

* Tim Cook says he's 'thrilled' that Buffett is a 'major investor' in Apple (CNBC)

Buffett told CNBC he's not looking to buy any General Electric's (GE) stock. While Buffett denied the rumors that he was looking to buy the stock, the billionaire investor did say he wants "the company to do well."

Buffett believes the economy is growing faster than 2 percent. But he said, "There's no way to calibrate it. They [the government] have their own problems with seasonal adjustments in the first quarter." (CNBC)

IN THE NEWS TODAY

President Donald Trump's pick to lead the CIA sought to withdraw over concerns about her role in the agency's interrogation program, according to multiple reports. Gina Haspel told the White House she would step aside to avoid a brutal Senate confirmation hearing.

Trump is expected to outline new policies to bring prices drug down in a speech that could come this week. Alex Azar, Health and Human Services secretary, said in a speech last week that "the entire system is under review." (CNBC)

Trump's legal team is taking a more combative tone with Robert Mueller as the special counsel's probe faces a time crunch due to the midterm elections. Rudy Giuliani has suggested the president may decline to cooperate with prosecutors. (WSJ)

Additionally, Giuliani he would not rule out the possibility that payments were made to women other than porn star Stormy Daniels. Giuliani called the $130,000 Cohen paid to Daniels in 2016 a "nuisance payment." (Reuters)

* Voters have become numb to each new Trump scandal (CNBC)

Hawaii residents have been displaced after a volcano destroyed 26 homes and spewed lava hundreds of feet into the air. Some of the residents who have been evacuated were allowed to briefly return to gather medicine, pets, and other necessities. (AP)

Some tech workers are paying as much as $7,000 to firm Forever Labs to freeze their stem cells in hope of extending life. The company said it's carried out dozens of procedures so far in a range of facilities, but declined to provide specific user numbers. (CNBC)

STOCKS TO WATCH

Wells Fargo (WFC) settled a class action securities fraud lawsuit for $480 million, in a case stemming from alleged "misstatements and omissions" regarding its sales practices. The bank said it denies the claims in the suit and that it settled to avoid further cost and disruption.

International Flavors & Fragrances (IFF) bought Israeli competitor Frutarom for $7.1 billion in cash and stock. The deal is the second largest buyout involving an Israeli company, trailing only the $15 billion that Intel (INTC) paid for Mobileye.

ConocoPhillips (COP) reportedly filed court claims in Venezuela moving to take over assets of Venezuela's state-run oil company. The energy giant is claiming those assets were illegally misappropriated, according to the Wall Street Journal.

Mondelez International (MDLZ) bought Southampton, NY-based cookie maker Tate's Bake Shop for about $500 million.

Amazon.com (AMZN) was rated "outperform" in new coverage at Telsey Advisory Group, which set a price target on the stock of $1,900 per share. Telsey notes a customer-centric approach, "relentless" pursuit of efficiency, and growing Prime membership.

WATERCOOLER

Walt Disney's (DIS) "Avengers: Infinity War" set another record this weekend, destroying the box office competition and drumming up $1 billion faster than any other film on the books. The film is projected to earn $112.5 million in its second weekend at U.S. theaters. (CNBC)