Morning Brief

What to watch today: Dow to jump, Huawei hopes for US reprieve, and Trump defends economy



U.S. stock futures were pointing to a strong Monday open on Wall Street, after the Dow on Friday surged 307 points, or 1.2%, in its second straight positive session. Ahead of Monday trading, the Dow was about halfway to erasing Wednesday's 800-point plunge. (CNBC)

The Dow, S&P 500 and Nasdaq enter the new week riding three consecutive weekly losses. The Dow and Nasdaq were more than 5% below their all-time highs in July, while the S&P 500 was 4.6% off its record. However, each still has double-digit percentage gains for 2019. (CNBC)

Bond yields were higher this morning, after hitting multiyear lows last week, and the 10-year and 2-year briefly inverted, tripping a historically reliable recession signal. Over the weekend, President Donald Trump said he does not see a recession on the horizon. (CNBC)

* Trump trade advisor Navarro: 'Technically we did not have a yield curve inversion' (CNBC)

There are no economic reports out today. On Monday's earnings calendar, Estee Lauder (EL) is among the few companies set to release quarterly results before the bell. China-based Baidu (BIDU) and Iqiyi (IQ) report earnings this afternoon. (CNBC)

* Fed chief Powell delivers opening remarks at Jackson Hole this week (CNBC)

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Trump hinted he would like to see China resolve the Hong Kong protests before the world's two largest economies could reach a trade deal. However, after a weekend of mass pro-democracy demonstrations, Hong Kong gears up for more unrest. (Reuters)

* Trump meets Apple CEO Tim Cook for dinner, talking tariffs and Samsung (CNBC)

The Commerce Department is expected to extend Chinese tech giant Huawei's licensing process for three months as a gesture of "good faith" ahead of September talks aimed at resolving the trade war between the two nations, said Trump economic advisor Larry Kudlow. (Reuters)

Shareholder value is no longer the main focus of some of America's top business leaders. The Business Roundtable, a group of chief executive officers from major U.S. corporations, issued a statement today with a new definition of the "purpose of a corporation." (CNBC)

The coming week marks the 15th anniversary of Google's initial public offering — the first concerted effort to break the hammerlock that investment banks have always held on stock offerings. (FT)

Ride-hailing firm Lyft's IPO lockup agreement is set to expire today (Barron's)

Mastercard (MA), a partner in Facebook's planned Libra digital coin, is said to be putting together its own crypto team. In a recruitment listing, the credit card giant said those hired will "monitor cryptocurrency ecosystem trends" and "develop new products and solutions." (New York Post)

Microsoft (MSFT) said it would use chipmaker Nvidia's (NVDA) so-called ray tracing technology to provide more realistic graphics for its "Minecraft" video game. Last week, Nvidia beat estimates with an earnings boost from new high-end gaming chips. (Reuters)

Amazon (AMZN) is raising seller fees by 3% for thousands of small and medium-sized businesses in France because of a new digital tax passed by the French government. The tax is aimed at leveling the playing field between big tech and local businesses. (CNBC)

Target (TGT) is starting a grocery brand, after years of rolling out private-label brands in apparel and home goods. Products from the new line Good & Gather hit Target stores beginning Sept. 15. (CNBC)


Palo Alto Networks (PANW) shares were set to make back some of Friday's 7.2% decline, which happened after reports — which were later confirmed by the cybersecurity company — that its executive vice president of worldwide sales was leaving.

TV station operator Tegna (TGNA) has been approached by private equity firm Apollo Global (APO) about a possible sale, according to the Wall Street Journal, but has rebuffed those efforts so far.

Private equity firm Mantle Ridge has taken a 20% stake in food services company Aramark (ARMK), according to an SEC filing. Earlier this year, Mantle Ridge was reportedly mulling a possible offer to buy Aramark.

PG&E (PCG) won a court decision that allows the utility to keep sole control of a planned bankruptcy exit. Two groups of creditors had wanted to put forth their own versions of chapter 11 exit proposals.


An R-rated comedy topped the box office this weekend. The raunchy coming-of-age tale, "Good Boys," surpassed expectations to debut with $21 million in ticket sales in North American theaters. (USA Today)