Morning Brief

Wall Street is ready to take a hit Friday on new Trump tariffs on China

BY THE NUMBERS

U.S. stock futures were pointing to a sharp decline at the Wall Street open as the White House hit China with new tariffs. There could also be some volatility into the close today with quarterly quadruple witching, the simultaneous expiration of various futures and options contracts. (CNBC)

The Trump administration will impose a 25 percent tariff on $50 billion in Chinese goods, an action expected to ignite fresh broadsides in an escalating trade conflict between the world's two largest economies. (CNBC)

* China promises fast response as Trump readies tariffs (Reuters)
* ZTE shares slide on trade war jitters, lost 30% of market value this week (Reuters)

Chinese regulators have approved U.S. chipmaker Qualcomm's (QCOM) proposed $44 billion merger deal with NXP Semiconductors (NXPI), according to reports. (Reuters)

AT&T (T) completed its purchase of Time Warner after Thursday's close, shortly after the Justice Department said it would not apply for a stay of a federal judge's ruling letting the deal go forward. However, the DOJ could still appeal the decision. AT&T chief Randall Stephenson joins CNBC at 8:30 a.m. ET.

The economic calendar closes out the week with the New York Fed's June Empire State manufacturing index at 8:30 a.m. ET, May industrial production at 9:15 a.m. ET, and the University of Michigan's preliminary June consumer sentiment index at 10 a.m. ET. (CNBC)

* Trump's 4% GDP growth forecast may come as Americans spend tax-bill proceeds (CNBC)

Bill Ackman's private hedge fund has gained more than 9 percent this year while his publicly traded fund is up double digits, marking a dramatic reversal for the billionaire investor after three years of losses. (Reuters)

IN THE NEWS TODAY

An FBI agent who worked on the special counsel's Russia probe texted another investigator in August 2016 that "we'll stop" Donald Trump from getting elected president, according to Thursday's watchdog report on the FBI's investigation of Hillary Clinton's private email server. (CNBC)

* Former Trump campaign chief Paul Manafort to ask judge not to jail him (Reuters)

House Republicans unveiled a draft immigration bill that includes a pathway to citizenship for young immigrants brought to the U.S. illegally as children as well as border security measures sought by President Trump, according to multiple reports. (CNBC)

Apple (AAPL) reportedly expects cheaper liquid crystal displays to make up the majority of iPhone sales in a lineup to be released this fall. This comes amid a slower than expected transition to newer OLED screens, which are featured in the iPhone X. (WSJ)

Alphabet's (GOOGL) Google barely raised the number of women and underrepresented minorities among its ranks, while it got less white and more Asian over the past year, according to the search giant's fifth annual diversity report. (WSJ)

Facebook (FB) top policy strategist Elliot Schrage is leaving that job after a decade. Schrage, who joined Facebook from Google, will stay on and help hire his replacement. Then he'll serve as an advisor to CEO Mark Zuckerberg and COO Sheryl Sandberg. (Recode)

U.S. prosecutors have charged six current and former employees of San Francisco-based Fitbit (FIT) with possessing trade secrets stolen from rival company Jawbone. Fitbit said the judge found no Jawbone secrets were misappropriated or used in any Fitbit product. (AP)

Amazon (AMZN) is stacking Whole Foods with executives to weave it into Jeff Bezos' broader vision. Amazon has rapidly implemented changes since buying Whole Foods for $13.7 billion last year. However, Whole Foods CEO John Mackey remains. (CNBC)

Kellogg (K) is recalling about 1.3 million cases of its Honey Smacks cereal due to potential salmonella contamination. The FDA said evidence points to more than 60 cases of illness linked to Honey Smacks. Kellogg has launched an investigation of the third party manufacturer. (Reuters)

Fast food giant McDonald's (MCD) plans to phase out plastic straws at its U.K. and Ireland restaurants. The transition to paper straws is set to start in September, with completion by 2019. Plastic straws' environmental impact has also been a hot button issue in the U.S. (CNBC)

The New York Yankees are reportedly considering buying back 21st Century Fox's (FOXA) stake in the YES network if Fox completes a planned asset sale to either Walt Disney (DIS) or Comcast (CMCSA). Fox now owns 80 percent of YES. (Bloomberg)

The voice of renowned physicist Stephen Hawking, who died in March, will be beamed into space today, following a memorial service held at Westminster Abbey in London. (CNBC)

STOCKS TO WATCH

Shares of Canada Goose (GOOS) were soaring about 15 percent in the premarket after the trendy outerwear maker reported quarterly earnings of 9 cents per share. Analysts had expected a 10-cent loss. Revenue nearly doubled forecasts.

Adobe Systems (ADBE) reported adjusted quarterly profit of $1.66 per share, beating estimates by 12 cents. The software maker's revenue also beat. Adobe gave a strong forward guidance.

New York state regulators have hit Charter Communications (CHTR) with a $2 million fine for failing to meet certain conditions when its takeover of Time Warner Cable was approved.

Broadcom (AVGO) is laying off 1,100 workers in a move to cut costs after its November purchase of rival chipmaker Brocade. In an SEC filing, Broadcom said it may cut additional jobs in the future.

WATERCOOLER

Day two of the World Cup in Russia features three matches, including Spain versus Portugal. Spain takes the pitch having fired its coach days before the soccer tournament for taking the job at Real Madrid, where Portugal star goal-scorer Cristiano Ronaldo plays. (BBC Sport)

Tiger Woods let another round get away at the U.S. Open at Shinnecock Hills in New York, shooting an 8-over 78. As round two begins this morning, the four-way tie for the lead, spotlighting three Americans, was 1-under par. (USA Today)

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