Morning Brief

What to watch: Busiest Q3 earnings day and Tesla shares surge on surprise profit

BY THE NUMBERS

After Wall Street managed to eke out small gains Wednesday, a similar session appears ahead today, with U.S. stock futures modestly higher. The Dow, S&P 500 and Nasdaq are all on pace for a positive week, with two trading days to go. However, the ultimate fate of the stock market this week will likely to be dictated by corporate earnings reports, with today being the busiest reporting day for the quarter that ended in September. (CNBC)

This morning's earnings reports are highlighted by the latest numbers from Dow components 3M (MMM) and Dow (DOW) as well as Twitter (TWTR) and CNBC-parent Comcast (CMCSA). The latest numbers from American Airlines (AAL), Hershey (HSY), LabCorp (LH), Danaher (DHR), Northrop Grumman (NOC), Raytheon (RTN), Southwest Airlines (LUV), Stanley Black & Decker (SWK) and T. Rowe Price (TROW) are also out before the bell.

* Southwest revenue rises despite $210 million hit from Boeing 737 Max grounding (CNBC)

Among today's after-the-bell earnings reports: Dow components Intel (INTC) and Visa (V), as well as Amazon (AMZN), Capital One (COF) and Gilead Sciences (GILD).

Tesla (TSLA) delivered a strong third-quarter earnings report after the bell on Wednesday, posting a surprise profit and telling shareholders it is ahead of schedule with a new factory in Shanghai. Shares spiked as much as 20% higher after hours. (CNBC)

* Cramer: Earnings season has reached 'maximum disorientation' (CNBC)

Economic numbers are also a factor for today's trading, starting at 8:30 a.m. ET when the government releases weekly initial jobless claims as well as durable goods orders for September. September new home sales are out at 10 a.m. ET. The European Central Bank issues its latest interest rate decision and policy statement at 7:45 a.m. ET, following Mario Draghi's final meeting as ECB president. Draghi will hold his usual post-meeting news conference at 8:30 a.m. ET. (CNBC)

* Draghi is leaving the ECB: Here are the key moments of his 8-year reign (CNBC)

IN THE NEWS TODAY

More than two dozen House Republicans, led by Rep. Matt Gaetz, delayed a deposition hearing in the ongoing impeachment inquiry into President Donald Trump's conduct regarding Ukraine. The group marched into the secure facility at Capitol Hill, where House Democrats were scheduled to interview Pentagon official Laura Cooper, a witness in the probe. (CNBC)

* Ukraine knew of aid freeze by early August, undermining Trump claims (NY Times)
* Ukrainian leader felt Trump pressure before taking office (AP)

Maryland Rep. Elijah Cummings will be remembered by congressional leaders and colleagues as he lies in state at the Capitol. The public will be allowed today to pay their respects to the late House Oversight and Reform Committee chairman who had been a central figure in the Trump impeachment inquiry. (AP)

Trump announced he is lifting sanctions on Turkey imposed after it invaded northern Syria, and added that Ankara has guaranteed that a temporary cease-fire in the area will be "permanent." "The sanctions will be lifted unless something happens that we are not happy with," Trump said at the White House. (CNBC)

U.S. Defense Secretary Mark Esper lashed out today at Turkey for its military assault across the border on Syrian Kurdish fighters. Esper said Turkey's "unwarranted" invasion into Syria jeopardizes gains made there in recent years as the U.S.-led coalition and allied Syrian Kurdish forces battled the Islamic State group. (AP)

Six hours after lawmakers began grilling Facebook (FB) CEO Mark Zuckerberg on his cryptocurrency plans, House members from both sides of the aisle expressed dissatisfaction with the lengthy testimony. House members, who are concerned about regulation and the governance structure surrounding libra, said not much was learned on the digital coin. (CNBC)

* Warren 'opened up the opportunity' for us to think about breaking up Facebook, Rep. Maxine Waters says (CNBC)
* Rep. Ocasio-Cortez grills Zuckerberg over Facebook allowing lies in political ads (CNBC)

Amazon (AMZN) has just made its second acquisition in the health-care space, snapping up a start-up called Health Navigator, which provides technology and services to digital health companies. Health Navigator will join the company's Amazon Care group, which is designed to serve as a medical benefit for employees. (CNBC)

* Senators ask FTC to investigate Amazon over Capital One hack (WSJ)

STOCKS TO WATCH

Dow stock Microsoft (MSFT) reported better-than-expected fiscal first quarter results and slightly lower-than-expected quarterly revenue guidance. However, the company's Azure cloud services grew more slowly during the quarter.

Ford (F) delivered a big earnings beat for the third quarter but lowered investor expectations for the rest of the year as the automaker grapples with falling consumer demand, primarily in China.

Johnson & Johnson (JNJ) cut its previously reported third-quarter profit by $3 billion, to account for the proposed opioid settlement announced earlier this week. However, its adjusted earnings numbers reported earlier remain the same.

PayPal (PYPL) beat Street forecasts with adjusted quarterly profit and revenue in its third quarter. Payment volume came in above forecasts, and PayPal raised its full-year outlook as well.

EBay (EBAY) reported better-than-expected adjusted quarterly earnings, with revenue slightly above forecasts. The e-commerce company did forecast current quarter revenue that falls below Street estimates, amid increasing online competition.

GlaxoSmithKline (GSK) won FDA approval for wider use of its ovarian cancer drug Zejula.

Spirit Airlines (SAVE) reported better-than-expected adjusted quarterly profit and revenue. The beat came despite a negative impact from Hurricane Dorian during the quarter, and Spirit also gave an upbeat current quarter outlook.

Align Technology (ALGN) beat estimates with adjusted quarterly earnings, while the maker of Invisalign dental braces also saw revenue come in above estimates. The company also issued better-than-expected revenue guidance for the current quarter.

WATERCOOLER

The Washington Nationals beat the Houston Astros 12-3 last night for a commanding 2-0 lead in the World Series. Game 3 is Friday night in the first World Series game in the nation's capital since 1933. (AP)