Here are five things you must know for Thursday, May 24:
1. -- Stocks Mixed on New Trump Tariff Threat
U.S. stock futures turned lower on Thursday, May 24, as investors weighed a possible move by the Trump administration to impose new tariffs on automobile imports.
Donald Trump said he will launch a national security investigation into car and truck imports under Section 232 of the Trade Expansion Act, the same pretext he used to slap 25% tariffs on non-American steel and aluminium earlier this year. The move, which followed his hint that a "different structure" may be needed to arrange a new trade relationship with China, added to concerns that inward-looking trade polices will slow economic growth into the second half of the year.
"There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry," Commerce Secretary Wilbur Ross said in a statement.
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2. -- Best Buy, Gap Report Earnings
Best Buy Co. (BBY) - Get Report posted first-quarter adjusted profit of 82 cents a share, ahead of Wall Street estimates of 74 cents. Revenue of $9.11 billion beat estimates, and same-store sales jumped 7.1%, ahead of consensus that called for an increase of 2.5%. The stock fell 2% in premarket trading.
Hormel Foods Corp. (HRL) - Get Report earned 44 cents a share in its fiscal second quarter, 1 cent below estimates. Revenue was $2.33 billion, also below forecasts of $2.39 billion. The stock fell 0.6% in premarket trading.
The U.S. economic calendar on Thursday includes weekly Jobless Claims at 8:30 a.m. ET, and Existing Home Sales for April at 10 a.m.
3. -- Deutsche Bank to Cut 7,000 Jobs
The bank said it would cut its workforce to "well below" 90,000 from 97,000. The bank said the "personnel reductions are underway."
The struggling German lender said headcount in its equities sales and trading business, mostly based in New York and London, would be trimmed by about 25%.
Christian Sewing, Deutsche Bank's new CEO, said the company remains "committed" to its corporate and investment bank and its international presence but added "we must concentrate on what we truly do well."
Deutsche Bank shares traded in Frankfurt fell 3.4%.
4. -- Elon Musk Attacks the Media
In a Twitter rant on Wednesday, Tesla Inc. (TSLA) - Get Report CEO Elon Musk, apparently upset about reports the electric vehicle maker underreported worker injuries, said he plans to start a website that will let users rate news organizations and the journalists who work for them.
"The holier-than-thou hypocrisy of big media companies who lay claim to the truth, but publish only enough to sugarcoat the lie, is why the public no longer respects them," he said on Twitter.
"Going to create a site where the public can rate the core truth of any article & track the credibility score over time of each journalist, editor & publication," he added. "Thinking of calling it Pravda ..." Pravda is the Russian word for truth and the name of Russia's chief propaganda organ.
5. -- Apple Signs Driverless Car Deal With Volkswagen
Apple Inc. (AAPL) - Get Report has signed a deal with Volkswagen AG (VLKAY) to turn some of the carmaker's new T6 Transporter vans into Apple's self-driving shuttles for employees, The New York Times reported.
The project is behind schedule and has been consuming nearly all of the Apple car team's attention, three people familiar with the project told the Times.
Apple had sought partnerships with luxury carmakers BMW and Mercedes-Benz to develop an all-electric self-driving vehicle, the Times reported, citing five people familiar with the negotiations. But on-again, off-again talks with those companies ended after each rebuffed Apple's requirements to hand over control of the data and design, some of the people said.