Morning Brief

What to watch today: Dow set to build on two-session rally and back-to-back monthly gains

BY THE NUMBERS

Dow futures were pointing to an advance at this morning's open as investors remained focused on the reopening of the U.S. economy despite civil unrest across the nation. The Dow Jones Industrial Average on Tuesday logged a second straight day of gains, after last month's 4.2% rally and April's 11% surge. (CNBC)

As of Tuesday's close, the Dow and S&P 500 were both up more than 40% from their coronavirus lows on March 23. The Nasdaq was up nearly 45% over the same period and extended its year-to-date gain to 7%. The S&P 500 and the Dow cut their 2020 losses to about 4.6% and 9.8%, respectively. (CNBC)

American companies reduced their work forces by another 2.76 million positions in May as the coronavirus pandemic continued to slice through the U.S. economy, according to a report Wednesday from ADP. Economists had expected nearly 8.8 million private-sector job losses. (CNBC)

As for the economy in the second quarter, the Atlanta Federal Reserve's GDPNow tracker estimates an almost 53% contraction. The GDPNow reading undergoes regular revisions as more economic data comes in, and it's generally more accurate as the end of the quarter approaches, which in this case is June 30. (CNBC)

* Fed economist: Negative interest rates could be needed for a 'V-shaped' recovery (CNBC)

Two measures of the American services economy in May are out this morning: Markit releases its services index at 9:45 a.m. ET, and 15 minutes later the Institute for Supply Management issues its nonmanufacturing index. Also at 10 a.m. ET, the government releases April factory orders. (CNBC)

Home loan volume is getting stronger each week as buyers rush back into the market, hoping to get their hands on what the few houses up for sale. Mortgage applications rose 5% last week, and they were a stunning 18% higher than last year, according to the Mortgage Bankers Association's seasonally adjusted index. (CNBC)

Warner Music (WMG) priced its initial public offering at $25 per share, compared to the expected $23 to $26 range, and also upsized the offering to 77 million shares from the original 70 million. The stock is set to debut on Nasdaq today, in the largest initial public offering of 2020. (Reuters)

IN THE NEWS TODAY

White House health advisor Dr. Anthony Fauci is expressing concern about the level of protection a potential Covid-19 vaccine may deliver. If this coronavirus acts like others, a vaccine won't likely provide a long duration of immunity, Fauci, the nation's leading infectious disease expert, said during a Tuesday evening interview. (CNBC)

Dr. Scott Gottlieb, the former FDA commissioner, told CNBC today that a coronavirus vaccine will probably need to be administered every year, like the seasonal flu vaccine and unlike smallpox or polio vaccines, which generally provide immunity for life.

* Richard Fisher says Texas is case study for economic recovery from the Covid-19 recession (CNBC)
* Poll: Black voters are most worried about health and economic damage from coronavirus (CNBC)

Protesters around the nation defied curfews in many cities to protest the May 25 death of George Floyd, but the demonstrations against police brutality were calmer than the destructive unrest in recent days. President Donald Trump pressed his call for law and order, tweeting around midnight that New York City police are not being allowed to "perform their MAGIC" to bring the protests under control. (AP)

Floyd's family lawyer says he was told other officers 'will be charged' (NBC News)
Minnesota files civil rights charge against Minneapolis Police Department (NBC News)

Former Vice President Joe Biden, the presumptive Democratic presidential nominee, slammed Trump's handling of the nationwide protests and the coronavirus pandemic. Biden also got a boost in Tuesday's primaries, putting him 70 delegates away from clinching the nomination. (CNBC & NBC News)

Rep. Steve King, R-Iowa, who has a long history of racist remarks, lost his long-held House seat in Tuesday's GOP primary. In the general election, GOP Iowa state Sen. Randy Feenstra will face J.D. Scholten, a paralegal and retired professional baseball player, who ran unopposed in Tuesday's Democratic primary. (NBC News)

Zoom Video (ZM) reported a quarterly profit of 20 cents per share, more than double the 9 cents a share estimate. Revenue was also well above Wall Street forecasts, and Zoom nearly doubled its annual revenue outlook, as it continues to benefit from the coronavirus increase in remote working. (CNBC)

Facebook (FB) invested in Indonesian ride-hailing and food delivery company Gojek. PayPal (PYPL) also participated in Gojek's current funding round. Facebook's investment into Gojek follows a $5.7 billion investment the social networking giant made in April to India's Jio Platforms. (CNBC)

Amazon (AMZN) is planning a "Summer Sale" event that would kick off June 22, according to a document viewed by CNBC. The event is designed to help sellers who have been hurt by the pandemic and the postponement of Amazon's annual "Prime Day." (CNBC)

STOCKS TO WATCH

Campbell Soup (CPB) reported quarterly earnings of 84 cents per share, 9 cents a share above estimates. Revenue also beat forecasts and Campbell raised its full-year guidance, noting an increase in demand across all its brands amid the Covid-19 pandemic.

Canada Goose (GOOS) – The outerwear maker matched analysts' forecasts with a quarterly loss of 12 cents per share, while revenue came in above estimates. Canada Goose also said the pandemic-related negative impact on its business would be most pronounced during the current quarter, traditionally its slowest of its fiscal year.

Express (EXPR) – The apparel retailer lost $1.55 per share for its first quarter, wider than the 47 cents a share loss that analysts had anticipated. Revenue also came in below forecasts, as the pandemic closed the company's stores. Express is not providing guidance for the current quarter or the full year at this time.

Cosmetics company Coty (COTY) is in talks with Kim Kardashian West about a possible beauty products collaboration, according to a Securities and Exchange Commission filing.

Lyft (LYFT) said rides booked through its platform jumped 26% in May compared with the previous month. Demand has begun to rebound, with Lyft's ridership figures rising for seven straight weeks. The May figure was, however, 70% below year-ago levels.

Boeing (BA) struck a compensation deal with TUI Group, Europe's largest travel company, involving Boeing's grounded 737 Max jet. Boeing will provide an undisclosed amount of compensation to TUI and provide the company with credits for future orders.

Twitter (TWTR) named ex-Google Chief Financial Officer Patrick Pichette as its board chairman, becoming the first company outsider to serve in that role. Pichette had been Twitter's lead independent director since 2018.

Alphabet's (GOOGL) Google unit faces a $5 billion lawsuit for allegedly tracking user browsing habits even when the users are in "private browsing" mode. Google said it would vigorously defend itself against the claim.

CrowdStrike (CRWD) posted a quarterly profit of 2 cents per share, compared to expectations of a 6 cents per share loss. The cybersecurity company also reported better-than-expected revenue, pointing to a pandemic-related surge in demand as well as a more favorable competitive environment.

Cheesecake Factory (CAKE) said it hoped to have most of its restaurants reopened by mid-June, and that the locations that have reopened have pushed sales close to prior levels. However, the restaurant did say that sales have been hurt by the recent protests.