Morning Brief

What to watch today: Earnings galore, debt ceiling deal struck, and Britain's new prime minister


U.S. stock futures were poised for a second day of gains, following the announcement of a debt and spending deal by the White House and congressional leaders. The major averages had rebounded from a Friday loss earlier in the day on reports that the deal was about to be announced. The S&P 500 sits about 1% below its July 15 all-time high, with the Dow about 0.7% below its own record high. (CNBC)

On today's U.S. economic calendar, the National Association of Realtors is out at 10 a.m. ET with its June report on existing home sales. (CNBC)

It's a busy day for earnings. Dow components Coca-Cola (KO), United Technologies (UTX), and Travelers (TRV) lead this morning's earnings reports, with Kimberly-Clark (KMB), Harley-Davidson (HOG), Hasbro (HAS), Biogen (BIIB), Centene (CNC), Fifth Third (FITB), KeyCorp (KEY), Lockheed Martin (LMT), PulteGroup (PHM), Quest Diagnostics (DGX), Sherwin-Williams (SHW), and Stanley Black & Decker (SWK) also issuing quarterly numbers.

Dow component Visa (V) is out with its quarterly numbers after today's closing bell, along with Chipotle Mexican Grill (CMG), Discover Financial (DFS), Edwards Lifesciences (EW), iRobot (IRBT), Snap (SNAP), and Texas Instruments (TXN).


President Donald Trump and congressional leaders struck a two-year U.S. debt ceiling and budget deal. The deal moves the U.S. closer to dodging the threat of debt default and automatic spending cuts. It also could prevent a government shutdown when funding expires after Sept. 30, though lawmakers will have to pass separate appropriations bills. (CNBC)

The U.K. will find out who its next prime minister will be today when the winner of the ruling Conservative Party's leadership race is announced. The vote comes after Prime Minister Theresa May announced she would resign following repeated parliamentary rejections of the Brexit deal she struck with the European Union. (CNBC)

The Department of Homeland Security's expanded authority that allows for the expedited removal of undocumented immigrants goes into effect today. The White House announced yesterday it's calling for the removal of those who cannot prove they have been in the U.S. continuously for at least two years, a move that will bypass the courts. (USA Today)

The Justice Department told former special counsel Robert Mueller not to answer a swath of questions about his investigation involving Trump and the 2016 election. The letter is an indication to how difficult it may be to extract any new information when he testifies to Congress tomorrow. (Washington Post)

* Wray's testimony could be preview for Mueller hearing (AP)

The U.S. Department of Agriculture proposed new rules today that limits access to food stamps for households with savings and other assets. It's a measure that would cut benefits to about 3 million people. (Washingon Post)

* Coal miners to demand Congress restore full black lung benefits tax (NPR)

Trump said he believed Chinese President Xi Jinping has acted "very responsibly" with the protests in Hong Kong. Political tensions in Hong Kong have escalated recently over a proposed extradition bill that would allow those arrested in the territory to be sent to mainland China for trial. (CNBC)

* China's state media show Hong Kong protest images, fanning public anger (WSJ)

Secretary of Education Betsy DeVos and her family are among the groups that have seen an income boon of millions through their own investments since Trump's tax reform plan was signed. Ethics attorneys argue that the complexity of her finances makes it nearly impossible for government watchdogs to track who may be trying to have an influence over her. (CNBC)

Apple (AAPL) is in advanced talks to buy assets from Intel's (INTC) modem chip business, potentially acquiring patents and staff valued at $1 billion or more, The Wall Street Journal reported. If the purchase happens, it would again underscore Apple's increased willingness to consider large multibillion-dollar acquisitions with its war chest of $225 billion in cash and marketable securities. (CNBC)

Trump met with CEOs from Google (GOOGL), Broadcom (AVGO), and other technology companies to discuss trade practices and national security issues. The discussion came as tech companies face the potential of increased regulation following a week of hearings on Capitol Hill. (CNBC)

Facebook (FB) is expected to announce a settlement with the Federal Trade Commission over its privacy practices as soon as this week. It has already been widely reported that the settlement would include a fine of about $5 billion, as well as a number of privacy-related requirements. (WSJ)

Equifax (EFX) will pay $671 million to settle numerous state class-action lawsuits and investigations by the Federal Trade Commission, New York Department of Financial Services, and the Consumer Financial Protection Bureau. The deal, which is still subject to a six-month court approval process, will establish a consumer restitution fund of up to $425 million. (CNBC)


Whirlpool (WHR) beat Wall Street's adjusted quarterly profit and revenue estimates. Whirlpool also raised its full-year forecast, after successfully increasing prices to offset higher production costs.

TD Ameritrade (AMTD) beat forecast and adjusted quarterly profit estimates. Separately, the company announced that CEO Tim Hockey will step down once a successor is found.

Starbucks (SBUX) is buying a stake in restaurant technology company Eatsa, and will also take a seat on the board. Eatsa had operated a number of automated cafes, but has closed those locations down and is now selling its systems to other restaurant chains.

AutoNation (AN) named Chief Financial Officer Cheryl Miller as its new CEO, replacing Carl Liebert. The nation's biggest auto dealership chain had named Liebert to the post in March, replacing long time CEO Mike Jackson, but now said that both sides agreed that Liebert was not the right fit.

UBS (UBS) posted better-than-expected quarterly profit, with the Switzerland-based bank logging its best second quarterly in nearly a decade. The bank saw weakness in wealth management, but strength in retail and corporate banking.

Boeing's (BA) outlook was downgraded to "negative" from "stable" by Moody's, echoing a similar move earlier in the day by Moody's rival Fitch. Both credit rating agencies cited the ongoing uncertainty surrounding Boeing's grounded 737 Max jet.


Lil Nas X's "Old Town Road," featuring Billy Ray Cyrus, now ties the record for the most time tallied at No. 1 in the chart's six-decade history, ruling the Billboard Hot 100 for a 16th week. It now matches "Despacito" and "One Sweet Day." (Billboard)

Sony (SNE) debuted the first trailer of its Mister Rogers movie, "A Beautiful Day in the Neighborhood," starring Tom Hanks. It's inspired by the friendship between Rogers and Tom Junod, a journalist assigned to write a profile of the television host. (Variety)