Morning Brief

Wall Street is set to rebound after Dow falls on reignited trade-war fears

Key Points

BY THE NUMBERS

Futures were higher this morning after the Dow fell more than 250 points Thursday on reignited trade-war fears. Still, for the month of May, the Dow, S&P 500 and Nasdaq all saw their best month since January and second positive month in a row. (CNBC)

* China's markets just became more important to the rest of the world after a landmark day (CNBC)

Whether Wall Street sees a higher open could depend on the data from the nonfarm payrolls report for May. Economists expect there were 188,000 jobs created and unemployment held steady at 3.9 percent, according to Thomson Reuters. (CNBC)

Services purchasing managers' index (PMI) data will come out at 9:45 a.m. ET. That's followed by the non-manufacturing ISM and construction spending reports, which are both set to be released at 10 a.m. ET. this morning. (CNBC)

Sears Holdings (SHLD) named the more than 70 stores it's closing in 2018 as its sales continue to erode. The retailer said it continues to evaluate its store fleet and will make further adjustments "as needed and as warranted." (CNBC)

* Sears is closing 72 more stores. Here's a map of where they are (CNBC)

IN THE NEWS TODAY

German Economy Minister Peter Altmaier is hoping President Donald Trump will rethink his decision to impose levies on steel and aluminum imports after a decisive response from the EU. He added the EU may look to work with Canada and Mexico. (Reuters)

* Trump's global juggling act (Axios)
* Paul Ryan opposes Trump's decision to impose tariffs (CNBC)

Months of intense NAFTA negotiations between the United States, Canada and Mexico imploded when Vice President Mike Pence demanded that any deal expire automatically in five years, according to Canadian Prime Minister Justin Trudeau. (Washington Post)

North Korean officials will deliver a letter from Kim Jong Un to Trump today in Washington, according to Secretary of State Mike Pompeo. The letter is the latest sign that a canceled summit between the two leaders could be back on. (CNBC)

A Bloomberg analysis found that Trump's net worth fell $100 million to $2.8 billion over the past year as revenue from Trump Tower and his golf courses fell. The drop is the second in two years as Trump's name was stripped from buildings, such as in Manhattan.

The cost of the investigation into Russia's interference in the 2016 presidential election is now near $17 million, according to an accounting filed by special counsel Robert Mueller. The accounting covered October 1, 2017 through March 31. (USA Today)

Trump plans to issue a pardon to Dinesh D'Souza, a prominent conservative commentator and filmmaker who was convicted of making an illegal campaign contribution. Television personality Martha Stewart is also being considered. (CNBC)

Mariano Rajoy was ousted as Spain's prime minister after a parliamentary vote of no confidence. Rajoy said he would accept the result and wanted to congratulate the leader of the opposition Socialist Party, Pedro Sanchez, as his successor. (CNBC)

* Italy set for an anti-establishment government after roiling global markets (CNBC)

Axios has learned that Pope Francis will meet with executives of major oil producers and investment firms next week to talk about how the companies can address climate change, a significant development that shows how corporations are working with leaders.

Roseanne Barr revealed that she begged the president of Disney-ABC Television Group, Ben Sherwood, to not cancel her show. Barr apologized earlier this week for a racist tweet that led to the cancellation of her hit television show. (USA Today)

Microsoft (MSFT) CEO Satya Nadella discussed how researchers are working to determine how brain implants can augment a person's intelligence, one of the many ways the company is trying to make technology more accessible to people with various disabilities. (CNBC)

STOCKS TO WATCH

Lululemon (LULU) reported first-quarter earnings of 55 cents per share, 9 cents higher than a consensus forecast by Thomson Reuters. Revenue also came in higher at $650 million and the retailer reported a 20 percent rise in comparable sales.

Ulta Beauty's (ULTA) weak second-quarter outlook was spooking investors this morning. Despite the outlook, the retailer beat analysts expectations on the top and bottom lines, bringing in $2.63 per share on revenue of $1.54 billion. Analysts were expecting $2.48 per share on revenue of $1.53 billion.

GameStop (GME) beat on first-quarter earnings, reporting 38 cents, versus the 37 cents analysts polled by Thomson Reuters expected. However, the company missed on revenue with $1.93 billion versus the $1.96 billion expected.

General Motors (GM) announced that SoftBank Vision Fund plans to invest $2.25 billion in GM Cruise Holdings, further boosting the automaker's efforts with autonomous vehicle technology.

WATERCOOLER

Vermont Governor Phil Scott signed a bill into law, effective January 1, 2019, that will pay people $10,000 if they move to Vermont and work remotely for an employer out of state. This policy is intended to address Vermont's aging population. (Quartz)