Morning Brief

Dow futures higher | GE pops 10% | Trump sues to block subpoenas


U.S. stock futures were mixed this morning, with the Dow tracking higher on strong earnings from Dow components Pfizer (PFE) and Merck (MRK) today but the Nasdaq looking to decline on Alphabet's (GOOGL) disappointment late Monday. The S&P 500 was coming off another up session, which  saw the index hit its first all-time intraday high since September 2018. (CNBC)

* Three major pharmaceutical companies just reported earnings — here's how they did (CNBC)

Alphabet (GOOGL) shares were about 7% lower in premarket trading after the Google parent reported revenue that fell below analyst estimates for its first-quarter 2019. The company was also hit with a $1.7 billion fine from the European Commission in the quarter.

Among the other earnings this morning, General Electric (GE), General Motors (GM), Blue Apron (APRN) and MasterCard (MA) were reporting. Apple (AAPL) is the headliner after-the-bell. (CNBC)

* GE shares pop 10% as first quarter earnings beat Wall Street expectations (CNBC)
GE says Boeing's 737 Max is 'a new risk' to this year's earnings forecast (CNBC)

The Federal Reserve begins its two-day policy meeting today. The policymaking Federal Open Market Committee is almost certain to not raise interest rates, but faces several questions, including on the U.S. economy.

* Fed looks at a new program that could be another version of 'quantitative easing' (CNBC)

The housing sector gets attention today, with the release of the S&P/Case-Shiller Home Price Index for April at 9 a.m. ET. An hour later, the Conference Board's April Consumer Confidence Index is expected as well as pending home sales. (CNBC)


President Donald Trump, three of his children and the Trump Organization sued Deutsche Bank (DB) and Capital One (COF), in a bid to block the two from responding to congressional subpoenas, according a court filing. (CNBC)

Rod Rosenstein, the deputy attorney general whose appointment of special counsel Robert Mueller roiled the Trump administration for two years, has submitted his resignation to the president. (CNBC)

North Korea's vice foreign minister said that the United States will face undesired consequences if it fails to present a new position in denuclearization talks, state media reported. (Reuters)

The White House confirmed that the Trump administration is in the process of reviewing the past writings of conservative economics pundit Stephen Moore, Trump's recently announced pick to join the board of the Federal Reserve. (CNBC)

The Wall Street Journal reported that Boeing (BA) said certain safety alerts on its 737 Max jets didn't operate as airlines would have anticipated because of a previously undisclosed glitch on its part.

The We Company, better known as WeWork, filed confidentially for an IPO. It joins a growing list of tech firms that have filed to go public this year. WeWork's business model continues to rely on heavy funding from private investors, namely SoftBank. (CNBC)

Facebook's (FB) annual F8 developer conference beginning today promises to put a focus on its messaging apps as the social network shifts toward privacy. CEO Mark Zuckerberg told analysts he plans to talk about Facebook's privacy product road map. (CNBC)

Health officials confirmed another 78 cases of measles last week, urging people to get vaccinated as they battle the worst year for the disease in 25 years. Nearly three-quarters of this year's measles cases were in unvaccinated people, the CDC said. (CNBC)


Eli Lilly (LLY) posted first-quarter financial results of $1.33 per share on revenue of $5.09 billion. Analysts had expected earnings of $1.31 a share on revenue of $5.12 billion. The pharmaceutical company also raised its full-year guidance.

MGM Resorts (MGM) posted first-quarter earnings per share of 5 cents, compared to the 21 cents forecast by analysts. The hospitality company earned $3.18 billion in revenue, topping estimates of $3.13 billion surveyed by Refinitiv.

AK Steel (AKS) reported first-quarter results of 23 cents earnings per share, beating expectations by 10 cents. Revenue came in at $1.70 billion, lower than the $1.74 billion estimated on the Street.

Yum China (YUMC), the parent company of Pizza Hut and KFC, posted quarterly earnings per share of 59 cents on revenue of $2.30 billion. Analysts estimated earnings per share of 54 cents on revenue of $2.26 billion, according to Refinitiv consensus estimates. Same-store sales increased 4%, compared to the expected increase of 1.8%.

Western Digital (WDC) posted third-quarter earnings that missed estimates on the top and bottom lines. It earned $3.67 billion in revenue, missing estimates of $3.68 billion. Earnings per share were 17 cents, lower than the expected 46 cents.


Starbucks (SBUX) signaled the start of warmer weather by rolling out its summer menu. The coffee chain is bringing back three Frappuccino favorites and introducing a new iteration of the cold brew, along with the Dragon Drink. (CNBC)