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.

Confirmed Cases: 27900

Reported Deaths: 1082
CountyConfirmedDeaths
Hinds215239
DeSoto137316
Madison122234
Jones106949
Neshoba96069
Lauderdale88278
Rankin84112
Forrest81442
Scott75015
Harrison7448
Copiah56615
Leake54819
Jackson53316
Holmes52741
Wayne52112
Washington4969
Lee49316
Oktibbeha48624
Yazoo4736
Leflore47249
Lowndes45311
Warren44317
Lincoln43534
Lamar4197
Grenada3805
Monroe36729
Pike36712
Attala35223
Lafayette3524
Newton3289
Sunflower3066
Covington3025
Bolivar27713
Panola2706
Adams26718
Chickasaw25918
Tate2577
Jasper2506
Marion24811
Pontotoc2476
Noxubee2458
Pearl River24432
Winston2435
Clay24210
Claiborne23610
Simpson2303
Smith20611
Clarke20124
Marshall2013
Coahoma1866
Kemper17614
Union1759
Walthall1724
Yalobusha1617
Carroll16011
Lawrence1591
Itawamba1278
Calhoun1244
Humphreys1239
Tippah12311
Webster12310
Montgomery1222
Hancock12013
Jefferson Davis1064
Tallahatchie1043
Prentiss983
Greene927
Jefferson923
Wilkinson919
Tunica893
Amite822
George743
Choctaw714
Quitman680
Tishomingo681
Perry614
Alcorn561
Stone521
Franklin382
Benton270
Sharkey240
Issaquena71
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 39604

Reported Deaths: 961
CountyConfirmedDeaths
Jefferson4387142
Montgomery383999
Mobile3697134
Tuscaloosa204938
Marshall153710
Lee118937
Shelby108223
Madison10577
Morgan9813
Walker86723
Franklin85213
Dallas8198
Elmore81314
Baldwin6869
Etowah62513
Butler60427
DeKalb6025
Chambers58127
Tallapoosa56369
Autauga54511
Unassigned52025
Russell4840
Lowndes45820
Lauderdale4446
Houston4344
Limestone4090
Cullman4003
Pike3995
Colbert3685
Bullock3629
Coffee3532
Barbour3231
Covington3087
St. Clair3042
Hale29321
Marengo28611
Wilcox2808
Sumter27612
Calhoun2705
Talladega2677
Clarke2665
Escambia2636
Dale2440
Jackson2382
Winston2333
Blount2141
Chilton2112
Pickens2116
Marion20312
Monroe1972
Choctaw19212
Conecuh1804
Bibb1711
Macon1708
Randolph1709
Greene1667
Perry1451
Henry1303
Crenshaw1233
Lawrence1010
Washington1007
Cherokee747
Lamar711
Fayette671
Geneva670
Clay582
Coosa551
Cleburne291
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