Stocks expected to rebound after biggest declines of July for Dow and S&P 500

BY THE NUMBERS

Futures were higher this morning after a Wednesday session that saw the biggest declines of July for the Dow and the S&P 500 and a slide by the Dow back into negative territory for 2018. The drop was the first in five sessions for the Dow, S&P 500, and Nasdaq. (CNBC)

Two key economic reports will be released at 8:30 a.m. ET — the weekly look at initial jobless claims as well as June Consumer Price Index figures. Delta Airlines (DAL) is the only company of note set to release quarterly earnings this morning, with a virtually blank after-the-bell earnings calendar. (CNBC)

CA Technologies (CA) shares were 17 percent higher in premarket after it agreed to be bought by Broadcom (AVGO) for $44.50 per share in cash, or $18.9 billion. The price for the business software maker represents a 20 percent premium over CA’s Wednesday closing price. (CNBC)

Comcast (CMCSA) has fired the latest salvo in the bidding to buy British broadcaster Sky, with the NBCUniversal parent raising its bid to $34 billion in cash. That tops a bid by 21st Century Fox (FOXA) for the portion of Sky it doesn’t already own, which had valued Sky at roughly $32 billion. (CNBC)

IN THE NEWS TODAY

President Donald Trump said today in a press conference that NATO allies committed to raising their defense spending beyond 2 percent, following a flurry of public diatribes against key members of the 29-nation bloc. (CNBC)

Trump will head to the U.K. next and could bring fresh instability to Prime Minister Theresa May, at a time when political pressure is building. May reached an agreement Friday with her ministers that paves the way for future negotiations with the EU. (CNBC)

Former Trump campaign boss Paul Manafort has boasted "he is being treated like a 'VIP'" in jail as he awaits his upcoming trials on criminal charges. However, he will be leaving that lockup after a judge rejected his request to avoid transfer to another jail. (CNBC)

CNBC has learned that a bipartisan group of senators is expected to slam former President Barack Obama's administration in a report for its response to Russian election interference in the 2016 presidential election.

Peter Strzok, the FBI agent censured for sending anti-Trump text messages while he helped lead investigations into Hillary Clinton and Trump, will break his public silence this morning in testimony before Congress. (WSJ)

Stormy Daniels, the adult film actress who has made headlines for an alleged affair with Trump, was arrested in Ohio, according to her attorney. The attorney claimed the arrest was politically motivated, and said "it reeks of desperation." (CNBC)

Papa John’s (PZZA) founder John Schnatter resigned as chairman of the pizza chain’s board, following news that Schnatter had used a racial slur during a conference call. Schnatter admitted using inappropriate language and said racism had no place in our society.

Uber laid off 100 self-driving car test drivers in Pittsburgh in the wake of a high-profile crash in Arizona. Uber is replacing them with 55 so-called “mission specialists,” technical specialists trained on both on-road and test track conditions. (CNBC)

Elon Musk promised to fund fixes to the water supplies of homes in Flint, Michigan "that has water contamination above FDA levels." The water supply was contaminated with lead in 2014, when officials changed the city's water source. (Axios)

STOCKS TO WATCH

Walmart (WMT) is seeking to sell Japanese supermarket chain Seiyu, according to a report in Japan’s Nikkei business daily. Walmart is said to have approached major retailers and private equity funds about a possible sale.

Extra Space Storage (EXR) was removed from the “conviction buy” list at Goldman Sachs, which cited valuation although it is keeping its “buy” rating on the stock and raising the price target to $110 per share from $101.

Sony (SNE) was named “Best Idea Long” at Hedgeye, which said it sees a 35 to 55 percent upside in the shares. Hedgeye said the company has written down its weak businesses, and will benefit from strong growth in movies, music, gaming consoles, and life insurance.

Netflix (NFLX) was downgraded to “neutral” from “buy” at UBS in a valuation call following a 35 percent run-up since first quarter earnings were released. The stock has also more than doubled for the year to date.

WATERCOOLER

Mario Mandzukic scored the winning goal in the 109th minute and Croatia shocked England 2-1 Wednesday. Croatia will play France for the title on Sunday in its biggest sporting moment since becoming an independent nation in 1991. (AP)