Business

Apple and Starbucks earnings; Brexit relief; Google walkout

Posted November 1, 2018 6:02 a.m. EDT

— 1. Apple results: Flattening iPhone sales have been a source of concern at Apple for some time. The big question on Thursday is how the new models are selling.

The company will report quarterly earnings after the bell, with expected revenue between $60 billion and $62 billion.

Shares in Apple (APPL) have soared more than 29% so far this year.

2. Starbucks earnings: Starbucks (SBUX) will also report earnings after the close.

The coffee company has been struggling with controversy, sluggish sales and underperforming stores. Its stock is up just 1% for the year.

Investors will be curious to hear more from CEO Kevin Johnson, who took over in April and promised to turn the company around. He said he would be more strategic about opening new stores, while investing in innovation and digital offerings.

3. Brexit progress? The pound increased 1% against the dollar on Thursday to trade at $1.29.

The move comes after Reuters reported that Britain is close to agreeing a deal with the European Union that would give UK firms "some form of access to European markets."

Shares in major British banks including Barclays (BCS), RBS (RBS), and Lloyds (LYG) jumped around 3%.

Much remains uncertain: Time is running out for the parties to strike a withdrawal agreement, which must then be signed off by UK parliament.

4. Google walkout: Google (GOOGL) employees around the world are protesting how their employer deals with sexual harassment.

The demonstrations, dubbed "Google Walkout," follow an outcry over a New York Times investigation that detailed years of sexual harassment allegations, multimillion-dollar severance packages for accused executives, and a lack of transparency over the cases.

Google CEO Sundar Pichai has voiced his support for the walkouts.

"We let Googlers know that we are aware of the activities planned for Thursday and that employees will have the support they need if they wish to participate," Pichai said in a statement to CNN on Wednesday.

5. Global market overview: US stock futures were pointing higher.

European markets opened in positive territory following a mixed session in Asia.

The Dow closed 1% higher on Wednesday, while the S&P 500 added 1.1%.

The Nasdaq gained 2%, trimming its monthly decline to 9.2%. Still, October was the index's worst month since November 2008.

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6. Earnings and economics: Cigna (CI), DowDuPont (DWDP), Hanesbrands (HBI), LendingTree (TREE), New York Times (NYT), Royal Dutch Shell (RDS.A), Sotheby's (BID) and Spotify (SPOT) will release earnings before the open.

Caesars Entertainment (CZR), CBS (CBS), El Pollo Loco (LOCO), GoPro (GPRO), Kraft Heinz (KHC), MetLife (MET), RE/MAX Holdings (RMAX), Shake Shack (SHAK), U.S. Steel (X) and Western Union (WU) will report after the close.

The Institute for Supply Management plans to release its manufacturing index for October at 10 a.m. ET.

Shares in Credit Suisse (CS) dropped 4% after the bank reported disappointing revenue. CEO Tidjane Thiam said the third quarter presented "much more challenging conditions and lower levels of client activity."

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7. Coming this week:

Thursday — Apple (AAPL), AMC Networks (AMC), Progressive (PGR), CBS Corp. (CBS), Cigna (CI), Starbucks (SBUX), Shake Shack (SHAK), Kraft Heinz (KHC), GoPro (GPRO), Wayfair (W) and Spotify (SPOT) earningsFriday — Chevron (CVX), Exxon (XOM), Newell Brands (NWL), United States Steel Corp (X), MSG Networks (MSGN), and Seagate Technology (STX) earnings; US jobs report