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

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 515504

Reported Deaths: 10296
CountyCasesDeaths
Harrison34999558
DeSoto33360432
Hinds32743643
Jackson24906392
Rankin22565405
Lee16455245
Madison14954283
Jones14158248
Forrest13834260
Lauderdale12311323
Lowndes11357193
Lamar10693140
Pearl River9748244
Lafayette8868143
Hancock7849132
Washington7559169
Oktibbeha7229138
Monroe7068179
Pontotoc7033110
Warren6885178
Panola6791135
Neshoba6744210
Marshall6707142
Bolivar6468151
Union643598
Pike5942157
Alcorn5921107
Lincoln5540136
George510680
Prentiss508285
Tippah495683
Itawamba4884107
Scott478999
Tate4777117
Adams4776125
Leflore4749144
Copiah458195
Yazoo458092
Simpson4566117
Wayne443472
Covington434895
Sunflower4319106
Marion4295112
Coahoma4244110
Leake414191
Newton396182
Tishomingo386894
Grenada3789109
Stone366166
Jasper341266
Attala340490
Chickasaw318367
Winston318392
Clay312978
Clarke301695
Calhoun286850
Holmes272889
Smith270552
Yalobusha244947
Tallahatchie232353
Greene225149
Walthall222166
Lawrence220242
Perry214556
Amite210357
Webster206548
Noxubee188843
Montgomery182157
Carroll175441
Jefferson Davis174343
Tunica163539
Benton153139
Kemper145441
Choctaw137027
Claiborne134839
Humphreys132239
Franklin126530
Quitman107828
Wilkinson106139
Jefferson97134
Sharkey65321
Issaquena1957
Unassigned00

Alabama Coronavirus Cases

Cases: 847659

Reported Deaths: 16172
CountyCasesDeaths
Jefferson1163752005
Mobile743371381
Madison53434738
Shelby38413371
Baldwin38171589
Tuscaloosa36131643
Montgomery34571782
Lee25664264
Calhoun22622519
Morgan22527408
Etowah20059520
Marshall18821318
Houston17769426
St. Clair16946359
Limestone16192220
Cullman16140305
Elmore15948295
Lauderdale15055307
Talladega14244302
DeKalb13061271
Walker12138380
Blount10765193
Autauga10545157
Jackson10204195
Coffee9435192
Colbert9363210
Dale9038192
Tallapoosa7283202
Russell710165
Chilton7078170
Covington6967197
Escambia6962144
Franklin6364108
Chambers5795142
Marion5435130
Dallas5302210
Pike5128109
Clarke485686
Lawrence4845130
Winston4785110
Geneva4650136
Bibb435495
Barbour370180
Butler3444101
Marengo342793
Monroe338366
Randolph337767
Pickens334790
Fayette331485
Henry321066
Cherokee319964
Hale318889
Crenshaw261678
Washington256852
Cleburne255460
Lamar253555
Clay252069
Macon245767
Conecuh193562
Coosa185847
Wilcox178338
Lowndes178268
Bullock152745
Perry141840
Sumter139741
Greene130345
Choctaw94328
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