Morning Brief

Fed dashes rate-cut hopes | Musk may buy Tesla stock | Beyond Meat prices IPO


U.S. stock futures were mixed this morning. The Dow dropped more than 160 points Wednesday afternoon after Fed Chairman Jerome Powell dashed rate-cut hopes by describing low inflation as likely "transitory." The S&P 500 also finished lower after hitting an intraday all-time high before Powell's post-meeting news conference. (CNBC)

* Major Wall Street banks are telling clients to be ready for a sudden rip higher in the market (CNBC)

Earnings out this morning include Dow component Dow Inc. (DOW) as well as the company from which Dow Inc. was born, DowDupont (DWDP). After-the-bell reports today include Activision Blizzard (ATVI), CBS (CBS), El Pollo Loco (LOCO), Gilead Sciences (GILD) and U.S. Steel (X). (CNBC)

* Under Armour shares jump on earnings beat (CNBC)

Beyond Meat (BYND) makes its Wall Street debut today after pricing its initial public offering at $25 per share, at the upper end of its projected range. The company is offering 9.625 million common shares. Beyond Meat, which manufactures plant-based meat substitutes, will trade on the Nasdaq. (CNBC)

* Cramer: Buy Beyond Meat below $35 after its IPO (CNBC)

On the economic data front, ahead of the government's April jobs report tomorrow, weekly jobless claims are issued at 8:30 a.m. ET this morning. At the same time, investors get first-quarter productivity, and then at 10 a.m. ET, March factory orders are out. (CNBC)


Tesla (TSLA) detailed new capital raising plans that would generate about $2.3 billion in gross proceeds. That includes a 2.7 million share common stock offering, of which CEO Elon Musk may buy nearly 42,000, and $1.35 billion in convertible notes. (CNBC)

Facebook (FB) is negotiating a settlement with the FTC that would involve the creation of an independent privacy oversight committee, according to Politico. It could include appointing a federally approved official at the social network.

* Mark Zuckerberg explains how Facebook will make big bucks from privacy (CNBC)

In a letter addressed to Uber Chairman Ronald Sugar, investor group CtW demanded changes to Uber's board of directors ahead of the ride-hailing company's anticipated IPO, saying its governance "falls short of best practices." (CNBC)

Attorney General William Barr will not testify before the House Judiciary Committee today. The hearing is set to proceed as scheduled, starting at 9 a.m. ET. House Committee Chairman Nadler does not plan to issue a subpoena today. (CNBC)

* Barr refuses to hand over notes of phone call with Mueller (CNBC)
* Barr says he doesn't know if White House suggested DOJ open a probe into anyone (CNBC)

The House agreed to suspend its deadline for Deutsche Bank (DB) and Capital One (COF) to turn over their financial documents related to President Donald Trump until a court settles their effort to block the subpoenas. (WSJ)

Sources told CNBC that the announcement of a U.S. trade deal with China is "possible" by next Friday. While Washington and Beijing have repeatedly cited progress in the talks, some sticking points have prevented a final agreement. (CNBC)

British Prime Minister Theresa May has fired Defense Secretary Gavin Williamson following a leak from a National Security Council of the United Kingdom meeting regarding Chinese tech giant Huawei. (CNBC)

Venezuelan opposition supporters gathered for a second day of mass protests against embattled President Nicolas Maduro. It was less than 24 hours after violent clashes with pro-government forces. (CNBC)

* Here's why Russia and the US might do a deal over Venezuela's Maduro (CNBC)

The family of a Chinese student admitted to Stanford paid $6.5 million to the man at the heart of the college admissions scandal, whom they met through a Morgan Stanley financial advisor, sources told the L.A. Times.

Health officials in St. Lucia quarantined a cruise ship that appears to be operated by the Church of Scientology after confirming a female crew member has the measles. They say it is a small ship with fewer than 300 passengers and crew aboard. (CNBC)


Qualcomm (QCOM) reported adjusted quarterly profit of 77 cents per share, 6 cents above estimates, with the chipmaker's revenue also beating Wall Street forecasts. However, the company predicted lower than expected shipments for its cellular phone chips. Separately, Qualcomm said it would receive at least $4.5 billion as part of its recent legal settlement with Apple (AAPL).

Square (SQ) came in 3 cents above estimates with adjusted quarterly profit of 11 cents per share, while the mobile payments company's revenue was also above analyst forecasts. The stock, however, is coming under pressure due to a lower than expected current quarter outlook, with transaction volume in a downward trend.

Fitbit (FIT) lost an adjusted 15 cents per share for its latest quarter, 7 cents less than analysts had predicted. The fitness device maker's revenue came in above Wall Street estimates as it sold 2.9 million of its wearable devices during the quarter.

Caesars Entertainment (CZR) lost 32 cents per share for the first quarter, wider than the 18 cent loss Wall Street was expecting. Revenue did come in above estimates, however, and Caesars said it saw a 5.8% rise in Las Vegas market business.

Eventbrite (EB) lost 13 cents per share for the first quarter, wider than the 10 cent loss expected by analysts, while the event ticketing company's revenue also came in below forecasts. Eventbrite also gave a weaker than expected forecast for the current quarter, as it deals with higher operating expenses.

MetLife (MET) reported earnings of $1.48 per share for the first quarter, beating the consensus estimate of $1.27, though the insurance company's revenue was below forecasts. Rival Prudential Financial (PRU) missed estimates by 16 cents with first-quarter profit of $3.00 per share, with revenue slightly below forecasts. Prudential's results were hurt by higher long-term employee compensation expenses.

Starbucks (SBUX) is recalling 263,000 coffee presses due to a laceration hazard, according to the Consumer Product Safety Commission.

The FAA is mandating new flight control software and parts for Boeing's (BA) 787 Dreamliner, to address various safety issues. Boeing had already outlined related changes in service bulletins over the past few years, with the FAA's directive making those changes compulsory.


Cannabis aficionados everywhere may finally get their wish as Oreo-maker Mondelez eyes adding CBD-infused snacks to its product line, which includes Chips Ahoy cookies, Cadbury chocolate, Nilla Wafers and Nutter Butter cookies. (CNBC)