Facebook reeling; Trade relief; China blocks Qualcomm

1. Facebook reeling: Shares in Facebook are set to plunge about 20% after the company said it expect...

Posted: Jul 26, 2018 11:48 AM
Updated: Jul 26, 2018 11:48 AM

1. Facebook reeling: Shares in Facebook are set to plunge about 20% after the company said it expects revenue growth to slow as it "puts privacy first" and rethinks its product experiences.

The sharp reaction follows an earnings report that showed slower than expected user growth and ad revenue. Sales hit $13.2 billion for the quarter, up 42% from the same period a year prior but below Wall Street estimates.

The earnings report offered the clearest look yet into how the Cambridge Analytica debacle impacted the business.

During a conference call with analysts, Facebook CFO David Wehner warned that sales growth may decline as the company offers users "more choice around privacy."

2. Trade relief: Shares in European automakers surged after President Donald Trump and European Commission President Jean-Claude Juncker said they would work toward eliminating tariffs and barriers on trade.

Trump had threatened a 25% tariff on cars made in Europe after his administration slapped tariffs on EU steel and aluminum imports. Juncker said both sides agreed to "hold off on other tariffs" while talks proceed.

Shares in Volkswagen and BMW gained 4% and 3%, respectively.

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3. Trade escalation: A $44 billion tech deal is the latest casualty of escalating US-China trade tensions.

Qualcomm had been waiting nearly two years for its purchase of Dutch chip maker NXP to clear global regulatory hurdles. The deal, first announced in October 2016, had been approved by regulators in eight other jurisdictions, including the European Union and South Korea. China was the lone holdout.

The final deadline for the agreement was midday Thursday in China -- and Beijing's Ministry of Commerce simply let the clock run out.

Qualcomm had warned investors that this would likely happen. CEO Steve Mollenkopf said Wednesday that if China failed to approve Qualcomm's deal with NXP, the company would walk away.

4. Earnings: American Airlines, Bristol-Myers, Comcast, ConocoPhillips, Dunkin Brands, Hershey Foods, LendingTree, MasterCard, McDonald's, Nielsen, Penske Auto, PG&E, Southwest Air, Spotify, Under Armour, World Wrestling and Xerox will report earnings before the opening bell.

Amazon, Chipotle, Electronic Arts, Expedia, Intel and Starbucks will follow after the close.

Investors will also have to sort through earnings released after the close on Wednesday. Shares in Mattel were down 9% in extended trade. PayPal stock was off 5% following its earnings release.

In Europe, shares in Anheuser-Busch InBev dropped 6% and Nokia stock declined 9% after they reported disappointing earnings.

5. Global market overview: US stock futures were mixed.

European markets rose as investors reacted to trade news out of Washington.

Asian markets ended the day with mixed results. Major markets in China declined.

Oil prices were volatile following reports that Saudi Arabia had suspended crude shipments through a Red Sea shipping lane after an attack on two oil tankers.

6. New kid on the block: A three-year-old Chinese startup will make its Nasdaq debut on Thursday.

Pinduoduo is set to raise around $1.5 billion in its initial public offering. The IPO values the Beijing startup at around $20 billion or higher.

It's an online shopping platform where people can get goods for cheaper when they recruit friends to buy the same item. There are also flash sales, as well as free gifts and coupons for getting friends to follow companies on social media. Think of the company as a mash up of Groupon, Gilt and eBay.

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7. Coming this week:

Thursday - Earnings from Amazon, American Airlines, Chipotle, McDonald's and Starbucks
Friday - Exxon Mobil, Merck and Twitter report earnings; 21st Century Fox holds shareholder meeting; US reports Q2 GDP data

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 22464

Reported Deaths: 942
CountyConfirmedDeaths
Hennepin7540565
Ramsey2610103
Stearns198412
Nobles14883
Anoka126259
Dakota118244
Olmsted57510
Washington56230
Kandiyohi4751
Rice4112
Clay40625
Scott3792
Todd2960
Wright2691
Sherburne2192
Mower2161
Carver1852
Benton1692
Steele1480
Martin1265
Blue Earth1221
St. Louis11513
Freeborn970
Pine850
Winona7815
Nicollet747
Carlton730
Cottonwood650
Otter Tail620
Unassigned6110
Goodhue603
Watonwan590
Polk592
Crow Wing571
Itasca537
Chisago501
Dodge460
Chippewa441
Meeker440
Le Sueur431
Morrison400
Douglas390
Jackson390
Becker370
Murray360
Lyon360
Isanti330
McLeod290
Waseca240
Rock210
Swift170
Pennington170
Mille Lacs171
Fillmore171
Wabasha170
Brown142
Faribault130
Beltrami130
Sibley130
Cass122
Norman110
Wilkin113
Kanabec111
Pipestone100
Marshall90
Pope80
Wadena80
Aitkin70
Koochiching70
Yellow Medicine60
Lincoln50
Renville50
Mahnomen51
Red Lake40
Traverse30
Big Stone30
Clearwater30
Redwood30
Grant30
Lac qui Parle30
Houston20
Lake10
Hubbard10
Roseau10
Kittson10

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 18342

Reported Deaths: 496
CountyConfirmedDeaths
Polk3876115
Woodbury265831
Black Hawk171343
Linn93876
Marshall87815
Dallas87317
Buena Vista6820
Johnson6058
Muscatine54741
Wapello5384
Crawford4882
Tama40026
Scott34610
Louisa33610
Dubuque33016
Jasper25716
Pottawattamie2277
Sioux2100
Washington1858
Wright1240
Allamakee1194
Plymouth1191
Warren1140
Story961
Poweshiek888
Mahaska888
Bremer676
Henry671
Clinton601
Des Moines581
Boone560
Taylor480
Cedar461
Guthrie443
Clarke400
Benton391
Jones360
Iowa360
Monroe354
Shelby350
Clayton313
Buchanan310
Osceola310
Marion300
Webster291
Hamilton280
Madison261
Fayette260
Monona240
Lee230
Cherokee230
Winneshiek230
Cerro Gordo221
Davis200
Jefferson190
Harrison190
Lyon190
Grundy190
Floyd181
Sac170
Mills160
Hardin150
Butler150
Delaware150
Humboldt140
Ida140
Keokuk140
Hancock140
Appanoose133
Jackson130
Dickinson130
Clay130
Greene130
Howard120
Audubon121
Winnebago110
Cass110
Page100
Van Buren90
Franklin90
Carroll90
Pocahontas90
Chickasaw80
Emmet80
Unassigned80
Kossuth80
Adair70
Adams70
Lucas70
Union60
Montgomery60
Mitchell50
Ringgold40
Fremont40
Palo Alto30
Worth30
Calhoun20
Decatur10
Wayne10
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