Morning Brief: Trump goes to China as Snap cracks
What to watch today
President Donald Trump will be in China for two days where we’re sure to hear him talk about trade. According to data released on Tuesday, China had a $26.6 billion trade surplus with the U.S. in October.
In what’s been a big week for major media stocks, 21st Century Fox (FOXA) earnings on Wednesday will be the day’s corporate highlight. The media conglomerate is expected to report results after the close on Wednesday, and reports from Monday that Disney (DIS) and Fox discussed a possible deal is sure to be a topic of conversation on the company’s earnings call. Elsewhere in earnings, headliners on Wednesday should include casino operator MGM (MGM), Humana (HUM), CenturyLink (CTL), Monster Beverage (MNST), and Twilio (TWLO). The economic calendar is empty.
Investors will also keep an eye on shares of Snap (SNAP), which were cratering in after-hours trade on Wednesday after earnings disappointed. CEO Evan Spiegel also said in prepared remarks on the company’s earnings conference call that, “we are currently redesigning our application to make it easier to use.” He added that, “There is a strong likelihood that the redesign of our application will be disruptive to our business in the short term, and we don’t yet know how the behavior of our community will change when they begin to use our updated application. We’re willing to take that risk for what we believe are substantial longterm benefits to our business.”
Top news
China Oct. exports, imports growth slow as economy cools: The world’s second-largest economy is starting to cool after a strong first half, with momentum seen slackening further as Beijing’s crackdown on pollution hits factory output. [Reuters]
Trump to ask China to cut financial links with N.Korea: U.S. President Donald Trump will ask China to cut its financial links with North Korea and to abide by U.N. sanctions when meeting with Chinese President Xi Jinping in Beijing, a senior White House official said on Wednesday. [Reuters]
House GOP blocks Dems on child taxes as Senate bill emerges: Plowing through objections in a drive to wrap up their tax overhaul, House Republicans have blocked Democrats’ efforts to get bigger tax benefits for the cost of raising or adopting children. [AP]
Democrats, eyeing midterms, score wins in key governor’s races: The only two governor’s races in the U.S. this year ended in victory for Democrats, as voters turned away Republicans aligned with President Donald Trump and telegraphed a fight for his party’s hold on Congress in 2018 midterm elections. [Bloomberg]
Ross divesting shipping interests: U.S. Commerce Secretary Wilbur Ross has divested his interests in oil tanker company Diamond S Shipping and is in the process of selling off his holdings in another shipping firm, Navigator Holdings, a Trump administration official said on Tuesday. [Reuters]
Yahoo Finance Originals
Trump’s grade on the economy ticks back up to A-
will.i.am: ‘The computer is my instrument’
Sallie Krawcheck opens up about being sexually harassed on Wall Street
Facebook exec shuts down rumor that it’s spying on you
Emoji app endorsed by Rob Gronkowski is falsely touting Steve Wozniak as an advisor
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