Morning Brief

What to watch today: Dow set to build on Monday's major comeback

BY THE NUMBERS

Dow futures were pointing to a sharp gain at Tuesday's open, building on Wall Street's major reversal Monday after Bloomberg reported that the Trump administration is preparing a $1 trillion infrastructure plan. The Dow Jones Industrial Average on Monday roared back from a 760 point decline to close nearly 160 points higher after the Federal Reserve said it will start buying individual corporate bonds. (CNBC)

Economist Mohamed El-Erian warns about the risk of 'zombie markets' (CNBC)

Fed Chairman Jerome Powell delivers the first part of his semiannual update on monetary policy before a Senate panel at 10 a.m. ET on Tuesday and a House panel at noon ET on Wednesday. Ninety minutes before Powell begins testifying, the government is out with its May retail sales report, with economists expecting a record 7.7% rebound after April's unprecedented 16.4% decline. (CNBC)

The Fed releases its May industrial production figures at 9:15 a.m. ET. The National Association of Home Builders issues its June Housing Market Index at 10 a.m. ET. The government is out with April business inventories at 10 a.m. ET. Oracle (ORCL), H&R Block (HRB), and Groupon (GRPN) issue quarterly earnings after today's closing bell. (CNBC)

* Citi raises Apple forecast to the highest on Wall Street, predicts another 17% gain from here (CNBC Pro)
EU launches anti-trust probes into Apple's App Store and Apple Pay (CNBC)

In its eighth annual Disruptor 50 list, CNBC identifies private companies whose breakthroughs are influencing business and market competition at an accelerated pace. They're poised to emerge from the coronavirus crisis with tech platforms that have the power to dominate. (CNBC)

* How Stripe, CNBC's No. 1 Disruptor 50 company, helped keep the U.S. economy afloat during pandemic (CNBC)

IN THE NEWS TODAY

Investors seem to be taking solace in stimulus measures and putting concerns about spiking coronavirus cases in the U.S. and China on the back burner, even as total infections globally top 8 million. Chinese authorities locked down a third neighborhood in Beijing on Tuesday, rushing to prevent the spread of a new Covid-19 outbreak. Nearly two dozen states across America continue to see increases in cases. (CNBC)

A record number of investors believe the stock market is "overvalued," according to the Bank of America Global Fund Manager Survey, one of the longest running and most widely followed polls of Wall Street investors. A net 78% of investors in June believe the market is overpriced, the most since the survey begin in 1998 and exceeding the levels when the dotcom bubble burst in 1999-2000. (CNBC)

U.S. airlines, under tougher enforcement policies, are threatening to ban passengers who refuse to wear masks to reduce the risk of spreading the coronavirus. American Airlines said its updated policy will go into effect on Tuesday, followed by United Airlines on Thursday. Others with stricter mask measures also include Alaska AirDelta Air Lines, Hawaiian Airlines, JetBlue Airways and Southwest Airlines. (Reuters)

The Food and Drug Administration is warning that anti-malaria drug hydroxychloroquine may weaken the effectiveness of Gilead Sciences' antiviral remdesivir, which was granted emergency use authorization by the FDA to treat hospitalized Covid-19 patients in May. President Donald Trump promoted it and took the drug. (CNBC)

Major League Baseball Commissioner Rob Manfred said there might be no games after a breakdown in talks between teams and the players' union on how to split up money in a season delayed by the coronavirus pandemic. The league also said several players have tested positive for Covid-19. (CNBC)

* MLB's new media rights deal with Turner Sports worth over $3 billion (CNBC)

The Women's National Basketball Association is finalizing a plan to start its 2020 season during the coronavirus pandemic. Originally scheduled to begin May 15, the season would begin in July and include 22 regular games and a traditional playoff format. (CNBC)

* NBA's Sacramento Kings exploring breathalyzer concept to detect Covid-19, team owner says (CNBC)

The president plans to sign an executive order on police reform Tuesday as activists ramp up pressure for an overhaul of U.S. policing practices. The executive action comes as lawmakers in both parties work on their own reform proposals, following last month's police killing of George Floyd in Minneapolis and subsequent nationwide protests calling for the defunding of the police. (CNBC)

FCC Chairman Ajit Pai is calling for an investigation of T-Mobile US (TMUS), after a network outage impacted users across the United States for about 12 hours. Separately, SoftBank is considering a sale of its T-Mobile shares to raise cash and reduce its debt. Softbank holds about 25% of T-Mobile, while Germany's Deutsche Telekom owns about 44%. (Reuters)

Federal prosecutors have charged six former eBay (EBAY) employees with cyberstalking, alleging the defendants attempted to "stifle" a couple who published an online newsletter about e-commerce companies that was sometimes critical of eBay. (CNBC)

Tesla (TSLA) has confirmed a recent price-cut on its 2020 Model S Long Range Plus of $5,000 and boasted an increase in the EPA-rated range to 402 miles for that version of the company's flagship electric sedan. However, that 402-mile range remains unconfirmed by government offices. (CNBC)

* Tesla plans to use Glencore cobalt in new gigafactories (CNBC)
Proxy adviser ISS opposes re-election of Tesla chairwoman (Reuters)

Ford (F) is resurrecting the Mustang Mach 1 as the new global "pinnacle" of 5.0-liter V8 models for the famed pony car. The automaker digitally unveiled the limited-edition car Tuesday. It features greater performance than the current Mustang GT but it's expected to be more attainable than Mustang Shelby GT models, which are track-focused variants with more powerful engines. (CNBC)

Proteus Digital Health, which was once valued at $1.5 billion, has filed for Chapter 11 bankruptcy. The Silicon Valley company develops ingestible sensors that communicate when medicines are taken, plus a wearable patch that monitors the response. (CNBC)

STOCKS TO WATCH

McDonald's (MCD) said that U.S. same-store sales fell just 5.1% in May as the fast food giant started to reopen dining rooms in its home market. Outside of the United States, McDonald's has had to reckon with more widespread temporary coronavirus closures of drive-thru and delivery services

Lennar (LEN) reported quarterly profit of $1.65 per share, beating the consensus estimate of $1.18, with the home builder's revenue also beating Street forecasts. Lennar also forecast full-year home deliveries above current consensus, amid a rebound in home sales as the economy reopens.

Tanger Factory Outlets (SKT), the shopping center operator, said 72% of its occupied stores were open as of this past Sunday, and that weekly traffic has exceeded 90% of prior year levels at stores that have been open for 30 days or more. Tanger also said it had amended its debt agreements in a move that will maximize its financial flexibility.

Walmart (WMT) bought technology and intellectual property from CareZone, a developer of apps that help consumers manage their medications. Financial details were not disclosed, but a person familiar with the deal told CNBC that Walmart paid about $200 million.

Amazon (AMZN) introduced technology known as "Distance Assistant", designed to provide workers with real-time feedback on social distancing. The technology is now live at several Amazon buildings, and the company plans to open source the software.

WW (WW), the Weight Watchers parent, said it had 4.9 million subscribers as of June 6, up 7% from a year earlier. Digital subscriptions got a boost as more people stayed at home due to the Covid-19 pandemic.

Chesapeake Energy (CHK) is preparing to file for bankruptcy as soon as this week, according to people familiar with the matter who spoke to Reuters. The company is said to be in the final stages of negotiation $900 million loan to support operations while under Chapter 11 bankruptcy protection.

China's Tencent seeks to become the largest shareholder in video-streaming company iQIYI (IQ), according to people familiar with the matter who spoke to Reuters. IQIYI is currently majority owned by China search giant Baidu (BIDU).

Eli Lilly (LLY) said its experimental breast cancer treatment Verzenio met its main goal in a late stage study.

Royalty Pharma's (RPRX) initial public offering was priced at $28 per share, the top end of the expected range, raising $2.18 billion. It's the second largest pharma IPO on record, according to Dealogic, trailing only the 2013 IPO of Zoetis (ZTS).