IN NUMBERS
The benchmark 10-year Treasury yield on Wednesday rose, but traded below the previous session’s push above 3% for a December 2018 high. The Fed’s May meeting ends at 2 p.m. ET and Chairman Jerome Powell holds his typical post-meeting press conference. 30 minutes later. (CNBC)
Respondents to CNBC’s May Fed survey expect the central bank to raise rates another 50 basis points next month. The market expects rate hikes of at least 25 basis points at Fed meetings in July, September, November and December, as in March. (CNBC)
ADP said Wednesday morning that U.S. businesses added a much weaker-than-expected 247,000 jobs in April, as employers continue to struggle to find workers to fill vacancies. The ADP data was not the best indicator of the government’s monthly payroll count, which comes Friday. (CNBC)
* Weekly mortgage demand rose for the first time since early March, but that won’t last (CNBC)
IN THE NEWS TODAY
Shares of Uber (UBER) fell pre-market after the rides and logistics giant on Wednesday morning reported better-than-expected first-quarter revenue growth to $6.85 billion. The company said it would not have to make “significant” investments to keep the drivers. Uber announced a net loss of $5.9 billion for the first quarter, mainly due to its equity investments. (CNBC)
* Chinese ride-sharing giant Didi says the US regulator is investigating its $4 billion IPO (CNBC)
Moderna (MRNA) sold $5.9 billion of its Covid vaccine in the first quarter, shattering revenue and profit expectations. Shares of the company soared nearly 6% in premarket trading. The biotech name on Wednesday maintained its full-year forecast of $21 billion in Covid vaccine sales. CEO Stéphane Bancel expects to record even stronger vaccine sales in the second half. (CNBC)
CVS Health (CVS) rose about 1.5% premarket after the pharmaceutical and benefits management giant reported better-than-expected first-quarter earnings and revenue on Wednesday morning. CVS said it saw a more typical cough, cold and flu season in the first trimester. Sales of over-the-counter Covid tests helped results, but coronavirus vaccines and in-store testing declined. CVS also raised its forecast for the full year. (CNBC)
Shares of Starbucks (SUBX) rose about 7% in Wednesday’s premarket, the morning after the coffee company’s second fiscal quarter revenue beat estimates. Profit equaled. Starbucks suspended its outlook for fiscal 2022, citing lockdowns in China, inflation and investment in its stores and employees. Chinese comparable store sales fell 23%. Same-store sales in the United States increased 12%. (CNBC)
Starbucks said it would raise wages for incumbent workers and double training for new hires as the company and interim CEO Howard Schultz seek to push back on unionization efforts. Starbucks will not offer enhanced benefits to workers at the roughly 50 company-owned coffee shops that voted to unionize. Such changes at unionized stores would have to go through negotiation, the company said. (CNBC)
Elon Musk has said businesses and governments may soon face a “small cost” to use Twitter (TWTR) just weeks after announcing plans to buy the social media platform for $44 billion. The tech billionaire, who is also the CEO of Tesla (TSLA) and SpaceX, added in a Tuesday night post that the platform will continue to be free for “casual users.” (CNBC)
* Musk invited to discuss $44 billion Twitter deal in UK parliament (CNBC)
The European Commission, the executive arm of the EU, on Wednesday proposed new sanctions against the Kremlin, which will include a six-month phase-out of imports of Russian crude. Russia’s unprovoked invasion of Ukraine and evidence of war crimes have prompted the EU to take bolder action on energy sanctions. (CNBC)
* Russia shells Ukraine, targeting Western arms supply (AP)
Comedian Dave Chappelle was attacked by an audience member during a live performance at the Hollywood Bowl in Los Angeles, according to the Los Angeles Police Department. A male suspect jumped onto the stage and onto Chappelle on Tuesday night as he was about to walk out, police said. Security officers then intervened to arrest the suspect. (CNBC)
Buoyed by former President Donald Trump’s endorsement, JD Vance prevailed in Ohio’s competitive Republican Senate primary on Tuesday and will face NBC News drafts Democratic Rep. Tim Ryan in November.
* Ohio Governor DeWine wins in controversial GOP and NBC News primary drafts
As many as 26 states, or about half of the United States, would have to quickly ban or more severely limit abortions if the Supreme Court overturns its 49-year-old decision in Roe v. Wade, according to a leading reproductive rights group. (CNBC)
STOCKS TO MONITOR
Airbnb (ABNB) posted a quarterly loss of 3 cents per share, lower than the 29 cent loss analysts had expected. Revenue also beat forecasts as travelers continued to book rentals despite rising host prices. Airbnb jumped 5% in premarket action.
Yum Brands (YUM) on Wednesday reported quarterly results and revenue that beat expectations as shutdowns in China hurt sales. Taco Bell was the only chain in Yum’s portfolio, which also includes KFC and Pizza Hut, to report better-than-expected same-store sales growth. The shares were little changed premarket.
Brinker International (EAT) fell 10 cents from estimates with adjusted quarterly earnings of 92 cents per share, and issued a weaker-than-expected earnings outlook. The parent company of Chili’s and other restaurant chains pointed to tough commodity and labor costs, and shares fell 10.3% in premarket.
Generac (GNRC) jumped 5.3% in the pre-market after beating high and low estimates for its latest quarter. The standby generator maker earned an adjusted $2.09 per share, beating the consensus estimate of $1.94.
Tupperware (TUP) saw its shares tumble about 20% in the pre-market after it missed revenue and net income estimates for its latest quarter and withdrew its full-year guidance. the company discussed the uncertainty related to the Russian-Ukrainian conflict as well as fundamental changes to its business.
Match Group fell 6% in premarket trading following news that the dating service’s CEO Shar Dubey was resigning in late May. She will be replaced by Zynga (ZNGA) President Bernard Kim. Separately, Match Group reported better-than-expected earnings and revenue for its latest quarter.
Livent (LTHM) soared nearly 20% in premarket stock after the lithium producer released better-than-expected quarterly results and raised its 2022 revenue forecast. Livent is benefiting from strong demand for lithium used in electric vehicle batteries.
Akamai Technologies (AKAM) plunged about 14% in the pre-market after Akamai missed earnings estimates for its latest quarter, although revenue was in line. CEO Tom Leighton noted that the company faces a challenging global environment as well as headwinds from a strong US dollar.
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