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Morning Brief: Microsoft co-founder Paul Allen has died

Tuesday, October 16, 2018

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What to watch today

On Tuesday, investors will get the most anticipated earnings report of the week when Netflix (NFLX) releases its results for the third quarter after the market close. This report will be closely watched after the company missed on second quarter earnings, sending shares down sharply, while reporting fewer subscriber additions than expected. Analysts expect Netflix to report adjusted earnings per share of $0.81 on revenue of $4 billion for the third quarter, according to estimates from Bloomberg. Netflix said in its second quarter letter to shareholders that it expects to add 5 million subscribers in the third quarter, down from 5.3 million adds in the same quarter last year.

And before the market opens, Domino’s Pizza will release its third-quarter earnings at 7:30 a.m. ET. Shares of Domino’s Pizza (DPZ) have been on a tear this year — up nearly 49%. But while some analysts are expecting Domino’s to deliver on its report, others fear that the stock may have run a little too far, too fast.

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Top news

 (AP Photo/Evan Agostini, File)

Microsoft co-founder Paul Allen has diedMicrosoft Corp. (MSFT)  co-founder Paul Allen, the man who persuaded school-friend Bill Gates to drop out of Harvard to start what became the world’s biggest software company, died on Monday at the age of 65, his family said. [Reuters]

Federal government posts widest deficit since 2012: The U.S. federal government closed the 2018 fiscal year $779 billion in the red as tax cuts hit revenues and the government paid more to service a growing national debt, according to Treasury Department data released. [Reuters]

Fidelity unveils a new business to let hedge funds trade crypto: Fidelity, known for its mutual fund and discount brokerage businesses, is launching a new business called Fidelity Digital Assets to offer hedge funds and family offices custody and trading services for cryptocurrencies. [Yahoo Finance]

US wants drug makers to disclose prices in TV adsThe Trump administration proposed a new rule on Monday that would require drug companies to disclose drug prices in TV ads. The proposed rule, announced by the Center for Medicare and Medicaid Services, would make manufacturers announce the “Wholesale Acquisition Cost” for drugs covered in Medicare or Medicaid in advertisements targeted at consumers. [Yahoo Finance]

Adobe gives rosy 2019 forecast: Adobe Inc. (ADBE) gave a bullish sales forecast for next year, signaling the software maker’s expanding product suite will continue to attract customers. Revenue may grow 20% in fiscal 2019, with sales increasing evenly across the central business units, the San Jose, California-based company said. That growth rate would push revenue to about $10.8 billion for the year, topping analysts’ average estimate, based on Adobe’s reported sales and fourth-quarter forecast for 2018. [Bloomberg]

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The Morning Brief provides a quick rundown on what to watch in the markets, top news stories, and the best of Yahoo Finance Originals.