Morning Brief

Stocks are set to fall at the open after Dow ends 8-day win streak

Key Points


Futures were lower this morning after the worst day for the Dow and the Nasdaq since April 24 and the biggest one-day fall for the S&P 500 since May 2. The Dow's drop also ended an eight-day win streak and once again sent it into negative territory for 2018. (CNBC)

* Cramer: The one stock that is being unjustly overlooked (CNBC)
* Two of the supposedly safest stock market strategies are losing badly this year (CNBC)

Berkshire Hathaway more than doubled its investment in Teva Pharmaceutical (TEVA), according to the latest 13-F filing by Warren Buffett's firm. Berkshire owned 40.5 million shares in the generic drug maker as of the end of the first quarter, up from 18.9 million. Teva was up about 4 percent in the premarket. (CNBC)

* George Soros' fund bought $35 million of Tesla bonds (CNBC)
* Bill Ackman reveals size of United Technologies stake (CNBC)

The government issues April housing starts data at 8:30 a.m. ET. April industrial production figures are out at 9:15 a.m. ET, followed by a look at oil and gasoline inventories at 10 a.m. ET from the Energy Department. (CNBC)

* Weekly mortgage applications fall 2.7% even before rates spike (Reuters)
* Mortgage rates surge to their highest level in 7 years (CNBC)

Macy's (M) is the big name on the list of corporate earnings this morning, while Dow component Cisco Systems (CSCO), as well as restaurant chain Jack In The Box (JACK), and Take-Two Interactive (TTWO) are among the companies issuing numbers after today's closing bell. (CNBC)


A North Korea official said today that his country will reconsider a historic meeting between President Donald Trump and North Korea Leader Kim Jong Un if the United States insists on Pyongyang relinquishing its nuclear weapons. (CNBC)

* North Korea cancels meeting with South Korea over military drills (CNBC)

Iran said today that new sanctions imposed on it by the U.S. Treasury were an attempt to derail efforts to save the 2015 nuclear deal by its remaining signatories, following Trump's withdrawal from the accord last week. (Reuters)

* Iran deal pullout sends bad message to North Korea: Ex-UN chief (CNBC)

Novartis (NVS) announced its top lawyer Felix Ehrat will depart the Swiss drug maker, in the wake of his involvement in the $1.2 million contract the firm struck with Trump's personal attorney Michael Cohen. Novartis ended the contract this year. (Reuters)

Two of Trump's favored candidates, Lou Barletta in Pennsylvania and Deb Fischer in Nebraska, won their U.S. Senate primaries. Barletta, a Trump supporter since before the 2016 presidential nomination, received early support from the president in the race. (AP)

* Women win big in House primary races in Pennsylvania (NY Times)
* Senate panel poised to endorse Gina Haspel as next CIA director (USA Today)

Trump's plan to rewrite NAFTA has begun to look unattainable after a Mexican official said he expected negotiations to go beyond May 17, the informal deadline set by House Speaker Paul Ryan for the Trump administration. (WSJ)

CNBC has learned a Russian weapon the United States is currently unable to defend against will be ready for war by 2020. Russia successfully tested the weapon, which could carry a nuclear warhead, twice in 2016, sources said.

The New York Times has learned the identity of the prime suspect in a breach of classified CIA documents last year. Joshua Schulte, a former CIA software engineer, was stopped last year from flying to Mexico on a vacation by the FBI.

Walt Disney (DIS) executives are considering bringing animation guru John Lasseter back to the company in a new role, The Wall Street Journal reported. Lasseter took a six-month leave of absence after he made several employees "feel disrespected or uncomfortable."

Marvel Comics legend Stan Lee, co-creator of Spider-Man, the Hulk, and X-Men, has filed a $1 billion lawsuit, alleging his name and likeness were taken fraudulently so a company called "POW! Entertainment" could be sold to another firm in China. (CNBC)

Microsoft (MSFT) founder and billionaire Bill Gates' non-profit gave about $44 million to outside groups over the past two years to help shape new state education plans required under the 2015 law, according to the Associated Press, which conducted an analysis.


Johnson & Johnson (JNJ) is relaunching its baby care products line, which saw sales decline 20 percent since 2011. The new products are designed to be more in step with millennial moms, who are looking more natural ingredients.

Yum Brands' (YUM) Pizza Hut unit will become the largest pizza chain in Latin America and the Caribbean, after signing a franchise agreement with Spain's Telepizza Group.

21st Century Fox (FOXA) settled lawsuits with 18 former employees of the Fox News Channel, who had sued over alleged racial and gender discrimination.

Activist hedge funds D.E. Shaw and Sachem Head Capital Management both took small stakes at payroll processor ADP (ADP) during the first quarter, according to their quarterly SEC 13-F filings.


Good news for Prime members. Amazon (AMZN) implemented new discounts at its Whole Foods unit for members of its Prime service, taking 10 percent off already-discounted items, and cutting prices on certain items throughout the store each week. (CNBC)