BY THE NUMBERS
Dow futures are indicating a drop of about 140 points at the open today, following Wednesday's session in which the Nasdaq set yet another record high and the S&P 500 inched within 2% of its February record high. S&P 500 and Nasdaq were also lower as Wall Street awaited weekly jobless claims. Futures had been trading marginally higher in the morning before their negative turn. (CNBC)
* European stocks slightly lower after Bank of England holds rates (CNBC)
The Dow and the S&P 500 have been up for four straight days, advancing 1.39% and 0.64%, respectively, on Wednesday. The Nasdaq, which traded above 11,000 for the first time on Wednesday, has amassed a six-day win streak. All this comes ahead of Friday's key July jobs report.
* Treasury yields fall ahead of unemployment data (CNBC)
Another important labor-related report comes today, when the government issues its weekly report on initial jobless claims at 8:30 a.m. ET. Consensus estimates call for 1.423 million new claims for the week ending August 1, slightly lower than the prior week's 1.434 million.
Today's earnings calendar has Hilton Worldwide (HLT), Restaurant Brands International (QSR), ViacomCBS (VIAC), and Becton Dickinson (BDX) reporting before the bell. After the close, Uber (UBER), Yelp (YELP), and News Corp (NWSA) will report.
* Burger King parent's revenue falls 25% as coronavirus weighs on sales (CNBC)
* Nintendo just reported a wild 428% surge in profits thanks to the lockdown gaming boom (CNBC)
IN THE NEWS TODAY
President Donald Trump threatened executive action if Democrats and Republicans cannot soon come to an agreement on another coronavirus relief bill, saying he would act to extend the federal eviction moratorium, suspend the collection of payroll taxes and re-institute a federal supplement to unemployment insurance. It is unclear how he could specifically act — but Trump's comments at the White House on Wednesday come as administration officials and Democratic leaders on Capitol Hill continue to fail to reach a broader agreement. House Speaker Nancy Pelosi, D-Calif., told reporters Wednesday she felt "optimistic that there is a light at the end of the tunnel." But, she added, "how long the tunnel is remains to be seen." (The Washington Post)
* Vulnerable GOP senators offer more generous unemployment plan than their party proposed (CNBC)
Sixteen Republican senators indicated they would support another $25 billion in aid for the airline industry as it continues to reel with a coronavirus-induced slowdown in travel. Trump also expressed support for the federal aid later Wednesday, a boost to the likelihood it is included in a broader relief Covid-19 package. More than 200 lawmakers in the House had earlier called for the industry to receive additional support, which would be on top of the $25 billion in aid, mostly in grants, that was included in March's CARES Act and preserved jobs through Sept. 30. The proposed round would restrict layoffs through March 2021. (CNBC)
Facebook (FB) took down an interview posted on Trump's page in which he claimed children are "almost immune" to the coronavirus. Twitter later Wednesday took action by blocking Trump's re-election campaign account from posting again until it removed the tweet containing the video of the Fox News interview. It marks one of the few times Facebook has moderated content from Trump, telling NBC News the post violated its rules around false information on Covid-19. Similarly, Twitter said the re-election account's tweet violated rules around coronavirus misinformation. (CNBC)
Rocket Companies will start trading on the New York Stock Exchange later today after pricing its IPO at $18 per share and selling 100 million shares. The Quicken Loans parent, the largest mortgage lender in the U.S., had aimed to sell 150 million shares in a target range of $20-22. The size and price of the deal may be an indication that the Detroit-based firm had difficulties in convincing investors that it should be valued as a technology company, due to its mortgage lending platform, instead of a financial services company. The IPO is the third-largest in the U.S. this year. (Reuters)
* Tech IPOs brush aside election concerns and power through coronavirus as investors seek growth (CNBC)
Scientists have been assured by regulators that the timeline to approve for a potential coronavirus vaccine will not be influenced by politics, Dr. Anthony Fauci told Reuters in an interview, as the development process proceeds at rapid pace ahead of a November presidential election. "We've spoken explicitly about that, because the subject obviously comes up, and the people in charge of the regulatory process assure us that safety and efficacy is going to be the prime consideration," said Fauci, director of the National Institute of Allergy and Infectious Disease. Fauci said he was "certain" of what the White House wants to see for vaccine approval, but added there has been no pressure to "to do anything different than what we're doing." (Reuters)
* The U.S. has the worst coronavirus outbreak in the world: 'The numbers don't lie,' Dr. Fauci says (CNBC)
Uber announced it is acquiring British taxi software company Autocab as the ride-hailing company looks to grow its operations in the country. Although Uber does have a presence in the U.K., particularly in London, the acquisition of Autocab would help the company to expand operations from about 40 cities and towns into 170 regions. The move comes as Uber is appealing the decision by London's transport regulators to not renew its license to operate in the city, citing passenger safety risks. (CNBC)
* Jeff Bezos sells more than $3 billion in Amazon shares (CNBC)
STOCKS TO WATCH
Bristol-Myers (BMY) and Pfizer (PFE) won a key patent case involving the blood thinner Eliquis, with a judge ruling that drug companies Sigmapharm, Sunshine Lake Pharma, and Unichem had infringed the product's patents. Bristol and Pfizer have a profit-sharing agreement involving Eliquis.
Sonos (SONO) saw quarterly sales beat Wall Street expectations, as the high-end speaker maker shifted its focus to digital sales amid pandemic-related store closures. Sonos did, however, report an overall loss for the quarter.
Live Nation (LYV) reported a quarterly loss of $2.67 per share, wider than the loss of $2.08 predicted by Wall Street analysts. The live event promoter also saw revenue come in well below estimates, with the pandemic virtually eliminating large gatherings and events.
Roku (ROKU) lost 35 cents per share for its latest quarter, smaller than the 50 cent loss that analysts had anticipated. Revenue also beat forecasts, but the shares have come under pressure after the streaming video device maker said advertising industry uncertainty will persist through the third and fourth quarters.
Zynga (ZNGA) raised its full-year bookings forecast, after better than expected quarterly results. The digital game maker got a pandemic-related boost from increased engagement by players stuck at home during the pandemic.
Etsy (ETSY) reported quarterly profit of 75 cents per share well above the 39 cent consensus estimate. The online marketplace's revenue also beat Wall Street forecasts, as it saw nearly 19 million new and reactivated buyers.
Costco (COST) reported a July comparable sales increase of 13.2%, more than twice what Wall Street had anticipated. The warehouse retailer also saw a more than 75% jump in digital sales.
WATERCOOLER
What does it take to complete an $18.5 billion merger during a pandemic? At least for executives at Livongo and Teladoc, the answer is numerous late-night Zoom calls and a socially distant meeting at Detroit hotel without handshakes and with sanitized markers. The deal from the digital health firms, which was announced Wednesday, came together in less than three months. (CNBC)