Morning Brief

Stocks to rise | Davos rolls on | Shutdown enters Day 33


Futures were higher this morning but it wasn't enough, so far, to wipe out Tuesday losses that were the biggest since January 3. The Tuesday slide also marked the first decline for the Dow, S&P 500, and Nasdaq in five sessions. (CNBC)

* Cramer: 'Be careful about how much you sell' at these levels (CNBC)

Dow stock IBM (IBM) was jumping about 6 percent in premarket trading after the company reported adjusted quarterly profit of $4.87 per share, 5 cents above consensus. Revenue also beat forecasts. IBM gave strong 2019 guidance on continued strength in its services business. (CNBC)

Earnings reports due this morning come from Dow components United Technologies (UTX) and Procter & Gamble (PG), as well as Abbott Labs (ABT), Comcast (CMCSA), Kimberly-Clark (KMB), Northern Trust (NTRS), and Synchrony Financial (SYF). After-the-bell reports this afternoon will come from Citrix Systems (CTXS), Ford Motor (F), F5 Networks (FFIV), Las Vegas Sands (LVS), Texas Instruments (TXN), and Xilinx (XLNX). (CNBC)

The only economic report out today comes from the Mortgage Bankers Association, which will issue its weekly look at mortgage applications at 7 a.m. ET. The Energy Department will release its usual Wednesday report Thursday. (CNBC)


President Donald Trump will move ahead with plans to deliver a State of the Union-style speech at the U.S. Capitol at the end of January in spite of House Speaker Nancy Pelosi's request that he postpone it due to the shutdown. (CNBC)

* Kudlow says GDP damage from shutdown is temporary (CNBC)
* The Supreme Court weakened Trump's hand in shutdown talks (CNBC)

The Republican-controlled Senate plans to vote tomorrow on measures to reopen the government for the first time since the shutdown began. It is unclear if either measure would secure the 60 votes needed to advance. (WSJ)

* The financial shock for federal workers is about to get much worse (CNBC)

The White House rejected a trade planning meeting with Chinese counterparts this week due to outstanding disagreements between the two sides over the enforcement of intellectual property rules. (CNBC)

The U.S. Supreme Court granted the Trump administration's request to allow it to ban most transgender people from serving in the military while cases challenging the policy make their way to the court. (NY Times)

* Justices will hear first case on 2nd Amendment since 2010 (NY Times)

The elite financiers attending the World Economic Forum in Davos, Switzerland this week are worried about the 70 percent tax rate on earnings above $10 million proposed by freshman Rep. Alexandria Ocasio-Cortez, D-N.Y. (CNBC)

* Ray Dalio sees a 'significant risk' of a possible US recession in 2020 (CNBC)

Speaking from Davos with CNBC's Sara Eisen, Adidas CEO Kasper Rorsted said his biggest concern is the impact of a potential Brexit on the European economy. He urged British lawmakers to hold a second referendum on the matter.

China could completely cut investment into the Silicon Valley, according to the former deputy governor of the People's Bank of China, following intense scrutiny of the world's largest telecom equipment maker. (CNBC)

Viacom (VIAB) announced the acquisition of live-TV streaming service Pluto TV for $340 million. The all-cash deal, expected to close this quarter, marks Viacom's latest effort to jump into the streaming market. (CNBC)

According to a new Gallup survey, the percentage of U.S. adults without insurance reached a four-year high in the last quarter of 2018, but was still well below the peak level seen before Medicaid expansion under Obamacare. (CNBC)

Johnson & Johnson (JNJ) is pursuing an acquisition of surgical robotics firm Auris Health, according to Bloomberg. J&J is said to be willing to pay a premium to the $2 billion valuation that emerged from the latest Auris funding round.


TD Ameritrade (AMTD) beat estimates by 10 cents with adjusted quarterly profit of $1.11 per share, and the online brokerage's revenue also came in above forecasts. Profit more than doubled from a year earlier thanks in large part to the acquisition of Scottrade.

Capital One (COF) reported adjusted quarterly profit of $2.00 per share, missing the consensus estimate of $2.37. The bank's revenue also missed forecasts, and an 81 percent increase in marketing costs had a significant bottom line impact.

Walgreens Boots Alliance (WBA) will pay more than $269 million to settle a number of federal and state lawsuits that had accused it of overbilling federal health care programs.

ASML Holding (ASML) warned of weak first quarter sales, with a number of the chipmaker's customers delaying their orders into the second half of this year.

Aphria (APHA) is the target of a hostile takeover bid from U.S. cannabis rival Green Growth Brands. Green Growth said it plans to make a second all-stock bid for the Canadian company worth about $1.76 billion. Aphria said the bid is substantially identical to the prior bid, and urged its shareholders to take no action while a board committee considers the offer.

Apollo Global (APO) agreed to buy European packaging company RPC for $4.28 billion in cash. It had been reported yesterday that the two sides were close to a deal.


Disney's (DIS) "Black Panther" has done something no other superhero flick has ever done — nab a best picture Oscar nomination. It was was also nominated for costume design, original score, original song and more. (CNBC)