Morning Brief

What to watch today: Dow to fall, Pelosi announces impeachment inquiry and Trump lashes out


With investors unnerved by the announcement of a House impeachment inquiry, as well as worries over trade and earnings, U.S. stock futures were pointing to more losses at the Wall Street open. The S&P 500 and Nasdaq are already riding three day losing streaks, while the Dow has fallen in three of the past four days. All three averages closed Tuesday at their lowest in about three weeks. With Tuesday's decline, the Nasdaq has gone negative for the third-quarter, although the Dow and S&P 500 are still higher for Q3 and all the averages remain higher for the month of September.

* Treasury yields higher as Trump faces impeachment inquiry (CNBC)

On today's economic calendar, the government issues August new home sales at 10 a.m. ET. Kansas City Fed President Esther George, a voting member of the FOMC for 2019, appears before the Senate Banking Committee this morning in a hearing about payment technology. Fed Gov. Lael Brainard is also on the Hill, scheduled to testify before the House Financial Services Committee in a hearing centering on financial stability.

Best Buy (BBY) is targeting revenue of $50 billion by fiscal 2025, the company announced this morning ahead of a meeting with investors in New York. For fiscal 2020, it said it's targeting revenue to fall within a range of $43.1 billion to $43.6 billion. The company also said in a press release it plans to cut an additional $1 billion by fiscal 2025. (CNBC)

* Best Buy CEO wants to 'double down' on its strategy, despite disruptions such as tariffs (CNBC)

No earnings reports of note are out this morning, while home builder KB Home (KBH) and retailer Pier 1 Imports (PIR) are scheduled to release quarterly numbers after today's closing bell.

Nike's (NKE) fiscal first quarter earnings and sales topped analysts' expectations, as investments to sell more sneakers and apparel in its stores and on its website showed signs of paying off. The Dow stock was up about 6% in premarket trading. That would be an all-time high, topping the previous record of $90 per share, if those gains were to hold by the open. (CNBC)

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The House will start an impeachment inquiry into President Donald Trump as a swell of Democrats denounce the president over alleged abuses of power, House Speaker Nancy Pelosi said. Concerns have mounted about the president's efforts to push Ukraine to investigate the family of former Vice President Joe Biden, one of his top rivals for 2020. (CNBC)

* Trump authorizes release of transcript of controversial Ukraine call that mentioned Joe Biden (CNBC)
* Trump slams Pelosi impeachment probe: 'PRESIDENTIAL HARASSMENT!' (CNBC)

Even if the Democratic-controlled House ultimately voted to impeach Trump, it is unlikely to lead to his removal from office. Republicans hold a slim majority in the Senate, where an impeachment ruling would need a two-thirds majority to pass. (Reuters)

Chinese State Councilor and Foreign Minister Wang Yi said that while his country has no intention of unseating the U.S. as the world leader, China expects America to "remove all unreasonable restrictions." Wang's remarks come as the world's two largest economies are locked in an escalating trade war. (CNBC)

The U.K. Parliament is set to reconvene today following a historic ruling defeating Prime Minister Boris Johnson's decision to suspend Parliament in the run up to Brexit. Widespread calls are out for Johnson to resign, though he said the government would "get on and deliver Brexit on October 31st come what may." (CNBC)

Saudi Aramco has asked banks to submit proposals for a project finance loan of more than $1 billion, Reuters reported, though the specific nature of the projects wasn't clear. Aramco's Chief Executive said the company, which is preparing for an initial public offering, was still in the process of estimating repair work from attacks on two giant oil plants.

WeWork CEO Adam Neumann announced he's stepping down after a uproar over governance and valuation just as the company was planning to go public. Vice Chairman Sebastian Gunningham, a former Amazon (AMZN) exec, and CFO Artie Minson, formerly of AOL and Time Warner Cable, will take over as co-CEOs. (CNBC)

Vaping giant Juul Labs plans to restructure and cut back its staff as state, federal and international health regulators pull its fruit flavored pods off store shelves amid a public health crisis, CNBC has confirmed. The company is eliminating some of its 3,900 employees, slowing hiring and reviewing its current job postings.

Starting today, McDonald's will let job seekers start an application by using voice commands with Amazon's (AMZN) Alexa or Google's (GOOGL) Assistant. Some job recruitment companies have built voice-recognition systems on Google and Amazon's platforms, but both companies say McDonald's is the first direct employer to use its platform in this way. (AP)

Vox Media agreed to acquire New York Media in an all-stock transaction. Neither company would disclose the value of the deal to the New York Times. New York Media is the company behind New York Magazine and the websites The Cut (style, culture), Grub Street (food), Intelligencer (politics), The Strategist (shopping) and Vulture (pop culture).

A United Nations-affiliated oceans and ice report out today says is coming if global warming doesn't slow down, the world will see three feet of sea rise by the end of the century, much fewer fish, weakening ocean currents, even less snow and ice, stronger and wetter hurricanes, and nastier El Ninos. (AP)

* Brazil's president attacks Amazon rainforest 'lies' and thanks Trump for support (CNBC)


Alibaba (BABA) unveiled a new artificial intelligence chip that the China-based online retailer said would be used to enhance services for its cloud computing unit.

Amazon (AMZN) bought technology startup INLT for an undisclosed amount, according to Reuters. INLT makes software that helps companies simplify the process of importing goods into the U.S.

AT&T (T) Chief Operating Officer John Stankey told the Wall Street Journal that the DirecTV satellite TV unit is an important part of the company's strategy and that it doesn't plan to sell it. The Journal had reported last week that a sale or spin-off of DirecTV was under consideration.

HD Supply (HDS) plans to split into two separate public companies. One will contain the facilities maintenance business and the other will focus on commercial and industrial operations.

Cintas (CTAS) reported better-than-expected fiscal first quarter profit and revenue. The provider of uniforms and other employee services also raising its full-year earnings forecast.

Broadcom (AVGO) raised $3.2 billion in a convertible preferred stock offering, with the chipmaker upsizing the offering from the previously planned $3 billion.


Swedish climate activist Greta Thunberg is among four people named today as the winners of a Right Livelihood Award, also known as the "Alternative Nobel." Thunberg's campaign began on Aug. 20, 2018 when she held solitary demonstrations outside Sweden's parliament, skipping classes once a week to protest climate change. (AP)