Morning Brief

What to watch today: Dow to fall, China bill 'dead,' and Virgin Galactic set to go public

BY THE NUMBERS

U.S. stock index futures were lower this morning, as traders wait for testimony this week from Fed Chairman Jerome Powell. Wall Street closed lower yesterday on the back of negative sentiment in the tech sector, but the focus is on Powell's testimony tomorrow and Thursday. At 8:45 a.m. ET today, Powell gives a speech on bank stress tests. (CNBC)

On today's economic calendar, the latest Job Openings and Labor Turnover Survey, or JOLTS as it's called, is released at 10 a.m. ET. Meanwhile, Levi Strauss (LEVI) is out with earnings after the bell. Shares of PepsiCo (PEP) were slightly up in premarket trading after the company reported better-than-expected earnings and revenue. (CNBC)

IN THE NEWS TODAY

British billionaire Richard Branson's space tourism unit Virgin Galactic plans to go public. The firm will list its shares as part of a deal with Social Capital Hedosophia Holdings, a special-purpose acquisition company created by venture capitalist Chamath Palihapitiya. (CNBC)

Former President Barack Obama's signature health care law, and its coverage and insurance protections for millions of Americans, is again being argued today before a federal appeals court in New Orleans. Also in health news, a federal judge blocked the Trump administration's plans to force pharmaceutical companies to disclose the list price of their drugs in television ads. (AP and NY Times)

Attorney General William Barr said he sees a legal way to add a citizenship question to the 2020 census, shortly after the Supreme Court effectively blocked the move for now. Barr sees "an opportunity potentially to cure the lack of clarity that was the problem, and we might as well take a shot at doing that." (WSJ)

Rep. Eric Swalwell dropped out of the 2020 presidential race after struggling to break out in a jammed Democratic primary field. About two dozen candidates are left in the race for the Democratic nomination. Fundraising and polling thresholds for qualifying for debates starting in September will become more difficult. (CNBC)

* Democrats have moved 'too far to the left,' says BET founder Bob Johnson (CNBC)

Democratic presidential contender Sen. Elizabeth Warren raised $19.1 million during the three-month period that ended in June. Among candidates who have disclosed their second quarter fundraising numbers, Warren lags only South Bend, Indiana, Mayor Pete Buttigieg and Joe Biden, the former vice president. (CNBC)

President Donald Trump lashed out at U.K. Prime Minister Theresa May and U.K. Ambassador to the U.S. Kim Darroch in the wake of leaked internal memos in which Darroch called the Trump administration "inept" and "uniquely dysfunctional." "We will no longer deal with him," Trump said of Darroch on Twitter. (CNBC)

Hong Kong leader Carrie Lam said today the controversial extradition bill that has led to mass protests in the city is "dead." Addressing the weeks-long drama during a news conference, she reiterated that there is no plan to restart the legislation. She described the work to amend the bill as a "total failure." (CNBC)

Japan's Nintendo plans to shift a part of the production of its Switch gaming consoles to Vietnam from China in an effort to diversify manufacturing sites. Nintendo, which currently outsources almost all of the console production to contract manufacturers in China, plans to make the partial shift to Vietnam this summer. (Reuters)

U.S. airlines will detail for investors this month how the worldwide grounding of the Boeing (BA) 737 Max, now about to enter its fifth month, is impacting their financial results during the busiest time of the year for the industry. (CNBC)

Wealthy financier Jeffrey Epstein pleaded not guilty. He was ordered held without bail for at least another week pending a detention hearing on charges of sex trafficking dozens of underage girls more than a decade ago. He will be detained in jail until at least the detention hearing on July 15. (CNBC)

STOCKS TO WATCH

Cowen expects Netflix's (NFLX) original programming hours in the second quarter to rise more than 52%, saying high viewership for the season 3 of '"Stranger Things" will drive gross adds at the end of Q2 and into the third quarter.

Shares of 3M (MMM) were falling more than 1% in the premarket this morning to around $167, after RBC downgraded the manufacturing company to "sector perform" from "outperform." RBC cuts its per-share price target to $176 from $207.

WATERCOOLER

Sunday's FIFA Women's World Cup final, which saw the U.S. beat the Netherlands 2-0, pulled in significantly better television ratings in the U.S. than the 2018 men's final between France and Croatia. Ten percent of all U.S. households with televisions watched the game. (CNBC)

On July 16 in Chicago, CNBC is hosting its second @Work event, bringing together CFOs and senior financial leaders who play a critical role in shaping the workplace of the future to discuss new technology, funding innovation and growing the bottom line. Learn more and register now at cnbcevents.com/work-capital-finance.