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Deutsche Bank, Commerzbank end merger talks: Morning Brief

Thursday, April 25, 2019

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Investors can expect another packed day of earnings.

Some of the most highly-anticipated reports will come after the bell. E-commerce behemoth Amazon (AMZN), chipmaker Intel (INTC) and coffee giant Starbucks (SBUX) are all scheduled to release results after the market close.

Analysts are expecting Amazon to report earnings of $7.02 per share on $59.68 billion in revenue during the quarter, according to Bloomberg data. Amazon’s Web Services (AWS) will likely be in focus as well. AWS has been an important revenue driver for Amazon, and analysts are expecting robust cloud growth during the first quarter.

Intel will also be reporting financial results after the market close. Analysts surveyed by Bloomberg expect the company to report earnings of 87 cents per share on $16.03 billion of revenue.

Finally, coffee giant Starbucks will report after the bell. Same-store sales, a key industry metric, are expected to have risen 3% globally. Analysts are expecting Starbucks to report earnings of 56 cents per share on $6.32 billion in revenue during the quarter.

Other notable earnings reports scheduled for Thursday include 3M (MMM), AbbVie (ABBV), Altria (MO), Bristol-Myers (BMY), Comcast (CMCSA), D.R. Horton (DHI), Hershey (HSY), Raytheon (RTN), Southwest (LUV), UPS (UPS), Waste Management (WM) before market open; Alaska Air (ALK), Capital One (COF), Discover Financial (DFS), Ford (F), Grubhub (GRUB), Mattel (MAT) after market close.

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Headquarters of Deutsche Bank, left, and Commerzbank photographed in Frankfurt, Germany, Monday, March 18, 2019. Deutsche Bank and Commerzbank begin talks on a possible merger. (AP Photo/Michael Probst)

Deutsche Bank, Commerzbank end merger talks: Deutsche Bank AG and Commerzbank AG ended talks on a historic tie-up, throwing the future of both lenders into question after failed turnaround plans. The two lenders decided that attempting to integrate the two banks would be too difficult to execute and also cited the restructuring costs and additional capital requirements, according to a statement on Thursday. [Bloomberg]

Tesla misses expectations, reaffirms delivery guidance: Tesla (TSLA) reported its first loss on an adjusted basis since the second quarter of 2018. The Palo Alto, California-based company posted an adjusted loss per share of $2.90 for its fiscal first quarter. This was wider than the $1.30 loss per share consensus analysts were expecting, according to Bloomberg-compiled data. [Yahoo Finance]

Also: Elon Musk: Tesla will offer an insurance product within a month [Yahoo Finance]

Facebook stock jumps after Q1 earnings beat: Facebook (FB) on Wednesday reported its Q1 2019 earnings with the company beating Wall Street's expectations. During the quarter, the company had revenue of $15.08 billion. Analysts had projected $14.9 billion in revenue. Earnings per share topped out at $1.89, which was higher than analysts' expectations of $1.62 per share. [Yahoo Finance]

Also: Facebook is getting ready for a potential $3B-$5B fine from the FTC [Yahoo Finance]

Microsoft beats earnings expectations, stock jumps: Microsoft (MSFT) reported better-than-expected fiscal third-quarter financial results, bolstered by its continued dominance in cloud computing and services, which sent its shares soaring. Microsoft earned $1.14 per share, exceeding analyst expectations of $1.00 earnings per share. [Yahoo Finance]

Chipotle beats profit, revenue estimates as online sales surge: Chipotle Mexican Grill Inc. (CMG) beat Wall Street estimates for quarterly same-store sales on Wednesday, as the restaurant chain's emphasis on fresher menu and investments in online ordering and delivery boosted customer transactions. [Reuters]