Trump, Congress clinch debt-limit deal: Morning Brief

Tuesday, July 23, 2019

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WHAT TO WATCH

Earnings kick into high gear today. Ahead of the opening bell, investors will be focused on Coca-Cola (KO), and after the bell, Chipotle (CMG) and Snap (SNAP) will take the spotlight.

Soda giant Coca-Cola is expected to report second-quarter adjusted earnings of 61 cents per share on $9.99 billion in revenue, according to analysts polled by Bloomberg. Organic revenue growth will be watched closely after jumping 6% in the first quarter, much to Wall Street’s surprise.

Meanwhile, burrito giant Chipotle has been crushing it. The strength is expected to continue when Chipotle reports second-quarter earnings after the bell.

Same-store sales, a key industry metric, is expected to have risen 8.2% during the quarter. The second quarter is the first full quarter that the Chipotle rewards program was in place. Analysts surveyed by Bloomberg anticipate Chipotle will report second-quarter adjusted earnings of $3.76 per share on $1.41 billion in revenue. The options market is implying a 6% one-day move following the report.

In addition, social media company Snap will deliver its quarterly results after the market close. Daily active user (DAU) growth will be the key focus for investors. Snap is expected to report an adjusted earnings loss of 10 cents per share on $360.32 million in revenue. Shares of Snap have been on fire this year, rallying 158%.

Other notable companies reporting include AutoNation (AN), Biogen (BIIB), Centene (CNC) , Harley-Davidson (HOG), Hasbro (HAS), JetBlue (JBLU), Kimberly-Clark (KMB), Lockheed Martin (LMT), PulteGroup (PHM), Sherwin-Williams (SHW) and United Technologies (UTX) before the market open. Discover Financial (DFS), Texas Instruments (TXN) and Visa (V) will report after the market close.

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TOP NEWS

Awoman looks at the U.S. Capitol in Washington. (AP Photo/Jacquelyn Martin, File)

Trump, Congress clinch debt-limit deal after tense negotiations: President Donald Trump announced a bipartisan deal to suspend the U.S. debt ceiling and boost spending levels for two years, capping weeks of frenzied negotiations that avert the risk of a damaging payments default. [Bloomberg]

Sterling pounded ahead of new UK prime minister announcement: The pound against the U.S. dollar (GBP/USD) continued to fall on Tuesday morning, ahead of Britain announcing a new prime minister to take over from Theresa May. [Yahoo Finance UK]

Apple in advanced talks to buy Intel's smartphone-modem chip business: Apple Inc. (AAPL) is in advanced talks to buy chipmaker Intel Corp.'s (INTC) smartphone-modem chip business, the Wall Street Journal reported on Monday, citing people familiar with the matter. [Reuters]

Equifax settled a massive data breach suit — Here's how much consumers could get: Equifax’s (EFX) massive data breach in 2017 compromised 146.6 million Social Security numbers along with other personal information. As a result, the consumer credit reporting agency faced numerous lawsuits, including a class-action lawsuit that reached a settlement of at least $650 million on Monday. [Yahoo Finance]

Exclusive: Huawei CEO on partnerships with U.S. companies: 'We have to be more cautious": Huawei founder and CEO Ren Zhengfei says his company is reviewing future contracts with U.S. suppliers, even as those corporations appeal to Washington for relief from a trade blacklist that prevents them from selling to the Chinese telecommunications giant. [Yahoo Finance]

Also: Huawei sets agressive goal of 270 million phone shipments despite US ban [Yahoo Finance]

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