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Morning Brief

What to watch today: Dow to surge, Trump-Xi and Trump-Kim, and Facebook's 'don't vote' ban

BY THE NUMBERS

U.S. stock futures were pointing toward a surge this morning after President Donald Trump and Chinese President Xi Jinping agreed over the weekend to resume U.S.-China trade talks and hold off on additional tariffs. The indicated gains prime Wall Street to start the second-half of the year with a bang following an already big first half. The S&P 500 rallied more than 17% to start off 2019, notching its best first six months of a year in more than 20 years. (CNBC)

On today's U.S. economic calendar, there are two surveys on U.S. manufacturing out at 9:45 a.m. ET and 10 a.m. ET. The government releases May numbers on construction spending numbers at 10 a.m. ET. However, the main event comes on Friday with the government's June employment report, which may indicate whether a rate cut from the Fed is coming. Meanwhile, there are no major companies set to report earnings today. (CNBC)

A third of Americans said they have cut spending in the last year, and that percentage is about the same no matter the demographic, according to today's Invest in You Spending Survey. Reasons for spending less ranged from a loss of household income and new debt to fear of recession, job loss or large medical bills from an unexpected illness or injury. (CNBC)

* Men spend more on impulse buys than women. Here are 6 ways to break the habit (CNBC)

AAA expects about 41.4 million will be hitting the roads this week for the Fourth of July. Wednesday will be the worst day for travel. And gas prices could be higher due to the explosion at the Pennsylvania Energy Solutions complex, the biggest refinery on the East Coast. (CNBC)

IN THE NEWS TODAY

At the G-20 summit in Japan, Trump on Saturday, in addition to agreeing to restart talks and pause any tariff escalations, said he would allow Huawei to buy American gear for now. But ultimately, he said the U.S. would deal with the national security concerns surrounding the Chinese tech giant at the end of negotiations. Xi said China would buy more U.S. farm products. (CNBC)

* Kudlow: Trump's decision to let Huawei buy US products is 'not a general amnesty' (CNBC)

Trump and North Korean leader Kim Jong Un extended warm invitations to one another on Sunday. They shook hands on the North Korean side of the Demilitarized Zone, making Trump the first sitting American president to ever set foot in the hermit state. The leaders agreed to designate a team to work out the details of future negotiations. (CNBC)

* Japan to restrict exports to South Korea, citing less trust (AP)

Ahead of this week's meeting of OPEC and its allies in Vienna, the most important international oil producers there are indicating a likely extension of a deal to curb production. OPEC is set to debate an extension today, before getting the deal endorsed by non-members such as Russia tomorrow. (CNBC)

* Iran warns 'unilateralism' between Saudi Arabia and Russia could lead to the death of OPEC (CNBC)

Protesters smashed the windows of Hong Kong's legislature today as they attempted to storm the building on the 22nd anniversary of the former British colony's handover to China. This rally is held each year, but experts had warned that this year's anniversary might attract more people after other recent protests. (CNBC)

Rising Democratic star and 2020 presidential hopeful Pete Buttigieg announced today that he raised $24.8 million in the second quarter of his run for the White House. Since officially kicking off his underdog campaign in April, the mayor of South Bend, Indiana has made inroads with big money donors. (CNBC)

* Majority of Americans say they won't donate to 2020 presidential campaigns (CNBC)

Influential conservative advocacy group Americans for Prosperity is launching a new six-figure ad campaign today attacking the Export-Import Bank and special tax breaks. The group, which is affiliated with billionaire Charles Koch, is spending $250,000 on digital ads attacking both issues. (CNBC)

* Koch network throws its weight behind Silicon Valley in the regulatory battle with Washington (CNBC)

Facebook (FB) is banning ads that discourage people from voting in elections.The technology giant pledged to put its new "don't vote" policy prohibition into effect in the fall, before the 2019 U.S. elections on Nov. 5. (Reuters)

A new California law requiring almost all buyers to go through background checks before being able to buy bullets goes into effect today, potentially increasing the amount of time and money it takes to make purchases. (USA Today)

* 92% tax on e-cigarettes: That's happening today in Vermont (Burlington Free Press)

Oxycontin maker Purdue Pharma is reportedly slowing on sales, losing its workforce and facing restructuring challenges as it continues to battle lawsuits in the national opioid crisis. Purdue's revenue is expected to drop below $1 billion this year, a move it hasn't seen in a decade. (WSJ)

Warren Buffett, chairman of Berkshire Hathaway (BRK.a), has pledged to donate shares worth about $3.6 billion to five foundations, as part of his plan to give away most of his wealth to charities and other philanthropic efforts. (WSJ)

Despite a big push from Disney (DIS) this weekend, "Avengers: Endgame" remains $26 million shy of being the highest-grossing film of all time. The record of $2.78 billion is held by "Avatar" since its release in 2009. (CNBC)

STOCKS TO WATCH

The Justice Department has subpoenaed records from Boeing (BA) relating to its 787 Dreamliner aircraft and employees at the aerospace giant's South Carolina manufacturing plant, according to the Seattle Times.

UBS cut its Tesla (TSLA) price target by 20% to $160 per share and reiterated its sell rating. "We remain very cautious particularly as you go to the second half of the year," said UBS analyst Colin Langan.

Applied Materials (AMAT) said it would buy Japanese peer Kokusai Electric for $2.2 billion in cash from global investment firm KKR (KKR).

Brookfield Asset Management (BAM) and Singapore's sovereign wealth fund are acquiring Genesee & Wyoming (GWR) for about $6.4 billion in cash.

Shares of Deutsche Bank (DB) were higher, ahead of the company's July 7 meeting, where the German banking giant will reportedly discuss cutting up to 20,000 jobs.

WATERCOOLER

Taylor Swift penned a lengthy Tumblr post criticizing Scooter Braun's acquisition of Big Machine Label Group, and with it, her entire existing catalog of music. The 29-year-old pop star called the deal her "worst case scenario." Now other stars are weighing in on the controversy. (USA Today)

Just three seasons ago, the Brooklyn Nets were the worst team in the NBA. But Sunday, they were the story of the league. They agreed to deals with superstars Kevin Durant and Kyrie Irving as part of a sensational start to free agency, giving the longtime No. 2 team in New York top billing in the Big Apple. (AP)