Morning Brief: Xiaomi files for world’s biggest IPO since 2014

Thursday, May 3, 2018

What to watch today

The busy week of earnings and economic data will continue.

Notable earnings reports expected out on Thursday include (OSTK), Cardinal Health (CAH), Kellogg (K), CBS (CBS), Pandora (P), GoPro (GPRO), and Herbalife (HLF).

Investors will also keep track of some big after hours reports that dropped Wednesday, notably Tesla (TSLA), which saw shares reversing lower after an initial post-results pop, and Spotify (SPOT), which saw shares off as much as 9% in after hours trade following its first quarterly report since going public earlier this moth.

The economics calendar will also be busy Thursday with the weekly report on initial jobless claims, as well as readings on worker productivity, service sector activity, the U.S. trade balance, and factory orders all set for release.

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Top news

Lei Jun, founder and CEO of Xiaomi, holds Xiaomi 5s and 5s plus phones. [REUTERS/Stringer]

Xiaomi files in Hong Kong for world’s biggest IPO since 2014: Xiaomi Corp. became the first major company to use Hong Kong’s new rules for going public, filing for what’s expected to be the world’s biggest debut since 2014. While the filing didn’t say how much the Chinese smartphone maker is looking to raise in the initial public offering, it’s expected to be at least $10 billion, people with knowledge of the matter have said, and could value the business as high as $100 billion. [Bloomberg]

Musk’s most odd moments on Tesla’s earnings call: Elon Musk’s usually chummy relations with Wall Street just took a troubling turn. During a highly unusual earnings call, Tesla Inc.’s chief executive officer cut off analysts and got defensive about probing questions pertaining to the electric-car maker’s finances. The company (TSLA) burned through more than $1 billion for the third time in four quarters. [Bloomberg]

Amazon halts plan for Seattle office tower: (AMZN) said it has halted planning for a new office building in Seattle and might sub-lease rather than occupy another future tower downtown, pending a city council vote on a proposed tax on top businesses. Amazon’s decision puts a question mark on more than 7,000 new jobs at those buildings. Construction work and other businesses that would have catered to the world’s largest online retailer could be at risk too. [Reuters]

Cambridge Analytica shut down after Facebook scandal: Cambridge Analytica, the firm embroiled in a controversy over its handling of Facebook (FB) user data, and its British parent SCL Elections Ltd, are shutting down immediately after suffering a sharp drop in business, the company said on Wednesday. The company will begin bankruptcy proceedings. [Reuters]

Federal Reserve keeps interest rates unchangedOn Wednesday, the U.S. central bank released its latest policy statement, maintaining a target benchmark interest rate range of 1.5%-1.75%. Wall Street had expected the Fed would make no changes to its interest rate policy on Wednesday after raising rates in March for the sixth time since the financial crisis. [Yahoo Finance]

For more of the latest news, go to Yahoo Finance

Bike-Ambulance launched by Lodha Foundation at Tejpal Hall, Grant Road in Mumbai, India. 24×7 bike ambulance services is equipped with a first-aid kit and oxygen cylinder and launched with aim to deal with medical emergencies amid heavy traffic. (Photo by Pratik Chorge/Hindustan Times via Getty Images)

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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.