Morning Brief

What to watch: Dow to rise after records, US-China trade optimism and Uber's $1 billion loss


U.S. stock futures were pointing to a higher open for the Tuesday session on U.S.-China trade deal optimism, following record closes for the Dow, S&P 500 and Nasdaq. The Dow's move into record territory Monday was its first since July. None of the major stock measures have seen back-to-back losses in nearly a month and that streak will extend into today after the market's Monday gains. (CNBC)

On today's economic calendar, the September trade deficit is out at 8:30 a.m. ET. Later at 10 a.m. ET, the Institute for Supply Management issues its October nonmanufacturing index and the Labor Department is out with its September JOLTS, Job Openings and Labor Turnover Survey. (CNBC)

Quarterly earnings reports out this morning include the latest numbers from Allergan (AGN), Choice Hotels (CHH), Mylan (MYL), September-IPO Peloton (PTON), Regeneron Pharmaceuticals (REGN) and Tapestry (TPR), whose brands include Coach and Kate Spade. After-the-bell quarterly reports come from Altice US (ATUS), Caesars Entertainment (CZR), Host Hotels (HST) and Microchip Technology (MCHP). (CNBC)

Shares of Uber (UBER) were dropping about 6% in the premarket after the ride-hailing company reported a third-quarter loss of more than $1 billion. However, quarterly revenue and adjusted earnings beat expectations. CEO Dara Khosrowshahi told CNBC the company could become profitable in about two years.

Shake Shack (SHAK) shares were sinking about 17% in premarket trading after the burger chain turned in disappointing same-store sales growth in the third quarter. Adjusted earnings beat estimates while revenue match forecasts. Ahead of earnings, Shake Shack shares had gained more than 85%. (CNBC)


China is pushing President Donald Trump to remove more tariffs imposed in September as part of a "phase one" U.S.-China trade deal, Reuters reported. The deal is widely expected to include a U.S. pledge to scrap tariffs scheduled for Dec. 15 on about $156 billion worth of Chinese imports, including cell phones, laptop computers and toys.

The criminal trial of Trump's longtime adviser Roger Stone is set to begin today in what could become a colorful sideshow generating unflattering headlines for the president even as he faces a fast-moving impeachment inquiry. Stone, a longtime Republican operative and self-described "dirty trickster" and "agent provocateur," has pleaded not guilty to charges. (Reuters)

* Schiff: Trump aides' refusal to testify adds to potential impeachment evidence (CNBC)
* Giuliani associate will comply with Trump impeachment inquiry (Reuters)

Gubernatorial and legislative elections in four states today will test voter enthusiasm and party organization amid impeachment proceedings against Trump and a fevered Democratic presidential primary scramble. Legislative seats are on the ballots in New Jersey and Virginia, with the latter offering perhaps the best 2020 bellwether. (AP)

Iran's president announced today that Tehran will begin injecting uranium gas into 1,044 centrifuges, the latest step away from its nuclear deal with world powers since Trump withdrew from the accord over a year ago. The development is significant as the centrifuges previously spun empty, without gas injection, under the landmark 2015 nuclear accord. (AP)

* India says no to joining huge Asia Pacific trade pact (CNBC)

McDonald's confirmed Chief People Officer David Fairhurst has departed the company, effective immediately. Fairhurst's departure follows the announcement by McDonald's on Sunday evening that the board fired CEO Steve Easterbrook for violating company policy by having a relationship with an employee. (CNBC)

* McDonald's bars former CEO from working at rival restaurant chain for two years (CNBC)


Myriad Genetics (MYGN) cut its 2020 earnings forecast, with the drug maker saying changes in billing codes for certain types of cancers had a larger than expected negative impact. Shares were losing more than 30% in the premarket. The company had a $2.6 billion market value as of Monday's close.

RealReal (REAL) lost 27 cents per share for its latest quarter, 4 cents less than Wall Street was anticipating, and the online luxury goods marketplace saw revenue exceed analyst forecasts as gross merchandise volume rose 48% from a year earlier.

Marriott (MAR) missed estimates by 2 cents with adjusted quarterly profit of $1.47 per share, although the hotel operator's revenue did come in above forecasts. Marriott also cut its full year profit forecast as well as its outlook for revenue per available room, as hotel industry growth slows.

Hasbro (HAS) announced an $875 million secondary stock offering, with the toy maker intending to use the proceeds in part to finance its proposed acquisition of Entertainment One, the maker of preschool brands like Peppa Pig. Hasbro had announced the $4 billion deal in August.

Xerox (XRX) will sell its 25% stake in Fuji Xerox to Fujifilm Holdings for $2.3 billion, ending a 57-year joint venture between the 2 companies. Xerox had abandoned a proposed $6.1 billion to merge Xerox into the joint venture last year.

Occidental Petroleum (OXY) said it will slash capital spending by 40% in 2020, after reporting lower than expected quarterly profit. The energy producer has been under pressure from activist investor Carl Icahn and others to sell assets, cut expenses, and pay down debt.


The third installment in the five-movie "Fantastic Beasts" franchise has a new screenwriter. While the previous two films, "Fantastic Beasts and Where to Find Them" and "The Crimes of Grindelwald," were solely scripted by "Harry Potter" creator J.K. Rowling, the author will be getting co-byline with Steve Kloves, who helped adapt the original "Harry Potter" books into films. (CNBC)