Morning Brief

Dow futures higher | Jobs report set | Amazon drops 4% after earnings call



U.S. stock futures were mixed this morning ahead of the January employment report at 8:30 a.m. ET. Stocks are coming off a bullish January, with the Dow Jones Industrial Average and S&P 500 chalking up their largest monthly percentage gains since October 2015. (CNBC)

* European markets edge higher amid earnings (CNBC)

The employment report is expected to show nonfarm payroll gains of 170,000 with the unemployment rate coming in at 3.9 percent and average hourly earnings rising 0.3 percent. The ISM Manufacturing Index and the University of Michigan's final January consumer sentiment index are out at 10 a.m. ET. (CNBC)

Two other reports — delayed by the government shutdown — will also be out at 10 a.m. ET. November construction spending is expected to be higher by 0.2 percent, while wholesale inventories for November should register a 0.5 percent increase according to economists. (CNBC)

Amazon (AMZN) was 4 percent lower in premarket after it gave a weaker-than-expected current quarter sales forecast. It reported earnings of $6.04 per share, beating the consensus estimate, while revenue also beat forecasts amid a record holiday quarter. (CNBC)

Dow components Exxon Mobil (XOM), Chevron (CVX), and Merck (MRK) will be out with quarterly earnings this morning, along with Honeywell (HON), Illinois Tool Works (ITW), Johnson Controls (JCI), and KKR (KKR). There are no reports due out after today's closing bell. (CNBC)

* Deutsche Bank swings to first full-year net profit since 2014 (CNBC)


President Donald Trump said he never spoke to his longtime advisor Roger Stone about WikiLeaks and stolen Democratic emails posted by the site. He also denied directing anyone to talk to Stone about WikiLeaks. (NY Times)

* Rep. Maxine Waters: It's 'absolutely' clear that things are headed toward Trump's impeachment (CNBC)

There are about two weeks until large sections of the government could shut down again, but neither Trump nor House Speaker Nancy Pelosi appear ready to back off their positions on funding for Trump's proposed wall. (CNBC)

Trump calls wall talks 'waste of Time' and dismisses investigations (NY Times)
* Arizona lawmaker pushes porn tax to pay for Trump's border wall (CNBC)

Trump, giving an upbeat assessment on the U.S.-China trade dispute, said he expects to meet again with Chinese President Xi Jinping to resolve the conflict that has rattled the global economy. (WSJ)

* Another number paints a bleak picture of manufacturing in China (CNBC)

CVS Health (CVS), Cigna (CI) and other pharmacy benefit managers may come under pressure after the Trump administration proposed a new rule that would end rebates that PBMs receive from drug makers. (CNBC)

CNBC has confirmed that former presidential candidate and Godfather's Pizza CEO Herman Cain is under consideration for a Federal Reserve governorship. Cain met with Trump this week at the White House.

In an interview with CNBC's Jim Cramer, Democratic Sen. Elizabeth Warren said she wants billionaires like Howard Schultz and Michael Bloomberg to subscribe to the U.S. "social contract" and pay "their fair share" in taxes.

* Bernie Sanders proposes big estate tax hike, including 77% rate for billionaires (CNBC)

A storm swinging into California this weekend will spread a mess of snow and ice from parts of the Midwest into New England next week after one of the coldest Midwest outbreaks in a generation. (The Weather Channel)

* Polar vortex: Your phone's battery will die if it's too cold out (CNBC)
* Go away, polar vortex: Record-shattering cold set to give way to 'spring-like temperatures' (USA Today)

Facebook (FB) said it removed 783 pages, groups and accounts with ties to Iran as part of the company's continued effort to rid misinformation. The company said the Iranian accounts were used to push Iranian propaganda. (CNBC)

* Apple and Facebook make peace so Facebook employees can start using internal iOS apps again (CNBC)


Yum China (YUMC) came in four cents ahead of estimates with adjusted quarterly profit of 12 cents per share, while the restaurant operator's revenue was essentially in line with forecasts. Comparable store sales rose 2 percent, led by strength at the KFC unit.

Cypress Semiconductor (CY) reported adjusted quarterly profit of 35 cents per share, two cents above estimates, with the chipmaker's revenue also beating Wall Street forecasts. Cypress had posted a loss in the year-ago quarter.

Deckers Outdoor (DECK) earned $6.59 per share for its latest quarter, well above the consensus estimate of $5.30 per share, and the footwear maker also saw revenue come in above forecasts. The maker of Ugg boots also raised its full-year forecast.

Symantec (SYMC) beat analyst forecasts by five cents with adjusted quarterly profit of 44 cents per share, while the cybersecurity software maker's revenue also came in above forecasts on a strong performance by the company's consumer business. Symantec also announced the departure of chief financial officer Nicholas Noviello.

Apple (AAPL) blocked Alphabet's (GOOGL) Google unit from running its internally built iOS apps, following reports that Google had been running a voluntary app that let it track user activity. Apple had imposed a similar restriction on Facebook (FB) earlier this week, but the two sides have settled their dispute.

Sony (SNE) reported its highest ever quarterly profit, driven largely by its music content. However, Sony did seek lower profit at its gaming division.

Deutsche Bank (DB) returned to profitability in 2018 for the first time in four years, despite a fourth quarter loss for the German bank.

Anheuser-Busch InBev (BUD) will spend more than $50 million on Super Bowl ads this year, according to industry sources who spoke to Reuters. That would be up from $42 million a year ago.


Tips included: Chocolate manufacturer Hershey (HSY) says it has solved the case of the missing tips atop its Kisses candies, after angry holiday bakers complained about imperfect points. (CNBC)