Here are five things you must know for Tuesday, June 12:
1. -- Stocks Slip as Trump-Kim Deal Offers Few Details on Denuclearization
U.S. stock futures traded lower on Tuesday, June 12, after Donald Trump and North Korean leader Kim Jong Un signed a "comprehensive" agreement to continue discussions that would lead to the denuclearization of the Korean peninsula.
Stocks in Asia ended mostly higher, and European shares traded mixed as gained were limited because the text of the document was scant on new commitments or advancements. The historic importance of the first meeting between a sitting U.S. president and a North Korean leader was blunted somewhat by the agreement, which appeared to echo the so-called Panmunjom Declaration from April and included no new actions or commitments on the part of North Korea to end its nuclear weapons program.
The Federal Reserve begins a two-day meeting on Tuesday at which the central bank is expected to raise short-term interest rates for the second time this year and seventh time since December 2015. An announcement from the Fed is expected at 2 p.m. ET on Wednesday, June 13.
The U.S. economic calendar on Tuesday includes the Consumer Price Index for May at 8:30 a.m. ET.
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2. -- Kudlow in 'Good Condition' After Heart Attack
Larry Kudlow, economic adviser to Donald Trump, had a heart attack and was being treated at Walter Reed Medical Center, according to a tweet sent from Trump's Twitter account Monday evening, just before Trump was set to meet with North Korea's Kim Jong Un.
The White House said Kudlow was in "good condition" after experiencing a "mild" heart attack.
Kudlow, 70 years old, wasn't part of the entourage that traveled to Singapore with Trump. Kudlow serves as director of the National Economic Council.
3. -- Ruling Expected in AT&T and Time Warner Merger Case
The decision will come after months of back and forth and a six-week trial. The merger proposal expires June 21.
Leon's ruling could have significant implications for mergers in the media industry for years to come. The space has been active in recent months, with Walt Disney Co. (DIS) - Get Report launching a bid for Twenty-First Century Fox Inc. (FOXA) - Get Report and Comcast Corp. (CMCSA) - Get Report lurking on the sidelines.
Depending on the ruling, a Comcast bid for Fox could come as early as Wednesday, wrote Rich Greenfield, a BTIG LLC analyst, in a recent report.
AT&T shares rose 0.7% in premarket trading, while Time Warner was up slightly.
4. -- McDonald's to Detail Its Restructuring Plan
McDonald's Corp. (MCD) - Get Report is expected Tuesday to detail changes to its organizational structure in the U.S., which the fast-food giant said entails providing more resources to franchisees, The Wall Street Journal reported.
In a new memo sent ahead of a town hall meeting planned for Tuesday, McDonald's USA President Chris Kempczinski sought to reassure U.S. employees and franchisees that they will get more support from the company even though some positions will be eliminated.
In the memo, which was reviewed by the Journal, Kempczinski said all employees who will be laid off will be notified by June 28, but didn't say how many would lose their jobs in the restructuring.
McDonald's rose 0.5% in premarket trading.
5. -- Eli Lilly, AstraZeneca Halt Alzheimer's Drug Trials
Eli Lilly & Co. (LLY) - Get Report and AstraZeneca PLC (AZN) - Get Report announced on Tuesday they will discontinue global Phase 3 clinical trials of lanabecestat, a treatment for early and mild forms of Alzheimer's disease, after an independent data monitoring committee concluded the drug wasn't likely to meet its goals.
"The complexity of Alzheimer's disease poses one of the most difficult medical challenges of our time, and we are deeply disappointed for the millions suffering from this devastating disease," said Dr. Daniel Skovronsky, president of Lilly Research Labs. He added: "Lilly remains dedicated to Alzheimer's disease research as we have been for the last three decades. We won't give up on finding a solution for Alzheimer's patients."
The companies said the recommendation to stop the studies wasn't based on safety concerns.
The drug received fast track designation in 2016 from the U.S. Food and Drug Administration.
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