Morning Brief

Wall Street points to a modest recovery after Dow sinks more than 300 points

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BY THE NUMBERS

Futures were modestly higher this morning. Monday’s decline sent the Dow negative for June, following its ninth drop in ten sessions, and giving it its lowest close since May 3. The S&P 500 is clinging to a 0.4 percent June advance, while the Nasdaq is still up 1.2 percent. (CNBC)

General Electric (GE) announced this morning plans to spin off its health-care business and unload ownership in its stake in oil services business Baker Hughes. The details came the same day its stock is slated to be removed from the Dow and replaced by Walgreens (WBA).

Harley-Davidson (HOG) remains on watch, after enduring criticism from Donald Trump for its plans to move some production out of the U.S. Its shares fell yesterday after it said that tariffs would add $2,200 to the cost of each motorcycle exported to the EU from the U.S. (CNBC)

Netflix's (NFLX) stock was recovering somewhat in premarket after the streaming giant suffered its worst day in nearly two years Monday. Netflix fell 6.5 percent on fears the U.S. will make investment restrictions on "all countries that are trying to steal our" tech.

Home builder Lennar (LEN), financial information providers FactSet (FDS) and IHS Markit (INFO), and steelmaker Schnitzer Steel (SCHN) will issue quarterly earnings this morning, while restaurant chains Sonic (SONC) and Jamba (JMBA) are out with their numbers after today’s closing bell. (CNBC)

IN THE NEWS TODAY

President Trump's clout within the GOP is on the line in today's elections. Voters will weigh in on candidates in seven states, but the contest that matters most to Trump is South Carolina, where he appeared at a rally to help Gov. Henry McMaster before polls opened. (AP)

Top tech companies, including Amazon and Apple, met with U.S. intelligence officials last month to discuss preparations for the midterm elections, The New York Times reported. It came in anticipation of a repeat of the Russian meddling that occurred during the 2016 election.

Peter Navarro, one of Trump's top trade advisors, said the market was overreacting Monday to fears the administration would restrict foreign investment as part of its trade actions. He said investors should focus on the White House's efforts to protect American exports.

Border officials have suspended handing over migrant families to prosecutors, effectively reviving the Obama administration’s “catch and release” policy that has angered Trump. Prosecutions of adults crossing the border without children continued. (NY Times)

Despite public outrage over Trump's immigration policy of separating children from their parents who crossed into the U.S. unauthorized, the president's approval rating has not deviated from its recent upward trend, according to recently released surveys. (CNBC)

Conservative Rep. Steve King tweeted the U.S. is heading toward another civil war. The tweet came with a link to an article about a group of protesters who were staging an "occupy"-style campout in front an Immigration and Customs Enforcement holding facility. (USA Today)

Jerry Storch, a former CEO of bankrupt Toys R Us, is considering reviving the toy retailer, according to Bloomberg. He has been working with Credit Suisse Group and Fairfax Financial Holdings to stitch his plan together. Toys R Us finishes shuttering its locations this week.

A it's still tough to be a woman on Wall Street and men don't always notice. A Catalyst study reports that fewer than 17 percent of senior leaders in investment banking are women. All the top banks are run by men.

Elon Musk has been running a secretive, highly selective private school out of SpaceX’s headquarters in California, according to a report. There is heavy emphasis on math, science, engineering and ethics — at the expense of instruction in languages, music and sports.

STOCKS TO WATCH

Vale (VALE) and BHP Billiton (BHP) have signed a settlement with Brazilian authorities that puts to bed a $5.3 billion lawsuit over the 2015 dam disaster that killed 19 people.

GW Pharmaceuticals (GWPH) won Food and Drug Administration approval for its drug to treat epilepsy, the first-ever cannabis-based treatment to be approved in the United States.

Northrop Grumman (NOC) struck a deal to sell six U.S. Titan drone aircraft to the Australian government in a $5.1 billion deal.

TJX Cos. (TJX) was downgraded to “neutral” from “overweight” at Atlantic Equities, which cited valuation as its key reason. The retailer’s stock is up more than 24 percent so far this year.

AMC Networks (AMCX) was downgraded to “neutral” from “buy” at Goldman Sachs, which points to slower advertising growth at the cable television channel provider.

WATERCOOLER

Match Day 13 at the World Cup in Russia features the final games for Group C and Group D. France plays Denmark today and one of the questions is whether France will top Group C. (Fox Sports)

The real action is in Group D where Lionel Messi's Argentina faces a must win against Nigeria to have a chance of advancing to the knockout stage. (Fox Sports)