Morning Brief

Nasdaq set to chalk up its biggest August percentage gain in 18 years


Futures were lower this morning on the last day of August, but Wall Street appears set to conclude a bullish month. The Dow and S&P 500 remain on track for their best August since 2014. The Nasdaq should chalk up its biggest August percentage gain in 18 years. September has historically a tough month for stocks. (CNBC)

* Argentine peso and Turkish lira crash, putting pressure on emerging markets worldwide (CNBC)
* Stocks snap 4-day winning streak after report Trump backs tariffs on $200 billion in Chinese goods (CNBC)

Dow component Coca-Cola (KO) struck a deal to buy Costa, the world's second largest coffee chain, from Britain's Whitbread for $5.1 billion, including assumed debt. Costa has nearly 4,000 locations across a variety of international markets. (CNBC)

BlackRock (BLK) funds voted in favor of a recent shareholder proposal to replace Tesla (TSLA) CEO Elon Musk with an independent chairman, according to an SEC filing. The proposal was unsuccessful, and wouldn't have affected Musk's status as the automaker's CEO. (Reuters)

The week will end with two economic reports, starting with the Chicago Purchasing Managers Index at 9:45 a.m. ET. Consensus forecasts call for an August reading of 63, down from July's 65.5. Then at 10 a.m., the University of Michigan's final August Consumer Sentiment Index is seen coming in at 95.4, barely changed from 95.3 registered in mid-August. (CNBC)


Canada has until the end of today to join the new NAFTA deal that the U.S. and Mexico struck, which President Donald Trump coined "The United States-Mexico Trade Agreement." Trump has said he's optimistic Canada will join.

Trump told Bloomberg that if the World Trade Organization didn't "shape up" he would pull the U.S. out. The president's comments follow previous reports that Trump had told White House aides that he wanted to withdraw from the WTO.

The 60-day window closes next week for special counsel Robert Mueller to take any more actions before the midterm season officially kicks off. There's speculation that something might come as early as today. (Politico)

A federal judge gave special counsel Mueller extra time he had requested to decide whether to seek a retrial for former Trump campaign boss Paul Manafort on the 10 criminal charges that jurors deadlocked on last week. (CNBC)

CNBC has learned Trump's legal team hopes Emmet Flood will not replace Don McGahn as head of the White House counsel's office and remain in his position as one of the lead attorneys fighting against Mueller's probe.

Trump, speaking to a campaign-style rally in Indiana, warned that the Justice Department and the FBI must "start doing their job and doing it right" or "I will get involved." He has suggested its leadership is bias against Republicans. (Reuters)

President Trump will be in North Carolina where he is expected to sign today an executive order that will make it easier for small businesses to group together to provide their workers with retirement plans. (USA Today)

* Trump: Civilian government employees won't receive raises in 2019 (CNBC)

Arizona Sen. John McCain's casket landed at Joint Base Andrews in Maryland last night. On Saturday, a motorcade will take the late senator along Constitution Avenue to the Vietnam Veterans Memorial. (USA Today)

* At McCain's memorial, tears, laughs and allusions to the man not invited (NY Times)

The Pentagon announced that Boeing won a contract worth $805 million to build the Navy's first four carrier-based unmanned aerial refueling tankers. The MQ-25 Stingray drone tankers will launch from a ship and refuel Navy fighter jets in midair. (CNBC)

The Wall Street Journal reported that the U.S. Securities and Exchange Commission wants to make it easier for individuals to invest in private companies. The commission is also weighing an overhaul of rules intended to protect mom-and-pop investors.

Apple (AAPL) is set to reveal its latest lineup of products on Sept. 12 at the Steve Jobs Theater on the tech giant's campus in Cupertino, California, it announced in an invitation to media. This year's unveiling is rumored to be impressive even by Apple's standards. (CNBC)

* Exclusive: This is 'iPhone XS' — design, larger version, and gold colors confirmed (9 to 5 Mac)


Big Lots (BIG) reported adjusted quarterly earnings of 59 cents per share, missing estimates by 8 cents. Revenue was short of forecasts. Big Lots also warned on full-year guidance.

Lululemon (LULU) reported second quarter profit of 71 cents per share, well above the consensus estimate of 49 cents, while the athletic apparel-maker's revenue also beat Wall Street forecasts. Lululemon's results were helped by a big boost in online sales, and the company gave an upbeat outlook for both the current quarter and the full year.

Ulta Beauty (ULTA) beat estimates by five cents with quarterly profit of $2.46 per share, with the cosmetics retailer seeing revenue match Street forecasts. However, Ulta gave weaker than expected guidance on both earnings and comparable store sales.

American Outdoor Brands (AOBC) reported adjusted quarterly profit of 21 cents per share, nine cents above estimates, with the Smith & Wesson parent also seeing revenue beat forecasts. The gun-maker's results were helped by new products and reduced discounts, and the company also issued stronger than expected guidance for the current quarter.

Ambarella (AMBA) nearly doubled the consensus estimate of 13 cents per share for its second quarter, reporting profit of 25 cents per share, and the chip-maker and GoPro (GPRO) supplier also saw revenue come in slightly above forecasts. However, shares are being pressured by a revenue outlook that falls well below analyst estimates.

Campbell Soup (CPB) is facing an accelerated effort by shareholder Third Point to replace the food-maker's board members, according to a Reuters report. Third Point is said to be unconvinced that the food-maker adequately explored selling the entire company, after its announcement Thursday that it was putting its international and refrigerated foods units up for sale.


It'll soon be easier to get an alcoholic beverage at Disneyland. In 2019, Disneyland's newest expansion, Star Wars: Galaxy's Edge, will include a cantina where people over 21 will be able to order alcoholic beverages. (Entertainment Weekly)

For the 30th time overall, Serena and Venus Williams will play each other tonight in the third round of the US Open. Serena leads the head-to-head series with 17 wins over her older sister who has 12 wins. (USA Today)