Here are five things you must know for Monday, April 8:
1. -- Stocks Lower as Investors Look to Earnings Season
U.S. stock futures declined Monday as investors looked ahead to the start of the first-quarter earnings season and interpreted mixed statements on trade talks between Washington and Beijing.
Estimates from Refinitiv suggested first-quarter profits for companies in the S&P 500 likely will fall by 2.2% from the first three months of 2018, with revenue sliding by around 5%.
Contracts tied to the Dow Jones Industrial Average fell 69 points, futures for the S&P 500 were down 3.25 points, and Nasdaq futures declined 8.75 points.
U.S. stocks rose on Friday, getting a lift from a better-than-expected jobs report for March in which U.S. employers added 196,000 jobs. The Dow closed about 1.5% off its record close of 26,828.39 on Oct. 3, 2018. The S&P 500 extended its winning streak to seven straight sessions.
The economic calendar in the U.S. Monday includes Factory Orders for February at 10 a.m. ET.
As for the trade talks between the U.S. and China, Donald Trump last week called them a "success" but officials cautioned that significant work remains. White House economic adviser Larry Kudlow told CBS' "Face the Nation" over the weekend that the two-largest economies in the world were getting "closer and closer" to a deal.
2. -- Warren Buffett Urges Wells Fargo to Look Outside Wall Street for Next CEO
Warren Buffett has called for Wells Fargo to look outside Wall Street for a CEO to replace Tim Sloan.
Buffett, the largest shareholder in the San Francisco-based bank, told the Financial Times in an interview that the next Wells Fargo CEO shouldn't come from JPMorgan or Goldman Sachs (GS) - Get Report .
"They just have to come from someplace [outside Wells Fargo] and they shouldn't come from Wall Street," Buffett told the Financial Times. "They probably shouldn't come from JPMorgan or Goldman Sachs."
"There are plenty of good people to run it, but they are automatically going to draw the ire of a significant percentage of the Senate and the U.S. House of Representatives, and that's just not smart," Buffett said in the interview.
Sloan said late last month he would step down at the end of June after just three years as CEO of the bank as it attempts to put years of scandals and political criticism behind it.
3. -- American Extends Cancellations of 737 MAX Flights
American, the world's largest airline by several measures, has a fleet of 24 Boeing 737 MAX aircraft. Grounding the jets means about 90 flights a day will be canceled, the airline said Sunday.
Extending the grounding of the jets will "provide more certainty and avoid last minute flight disruptions," said the company.
The airline said it was awaiting word from the Federal Aviation Administration, Department of Transportation, National Transportation Safety Board, Boeing, as well as other agencies, before deciding its next steps.
"By proactively canceling these flights, we are able to provide better service to our customers with availability and rebooking options," said the company in a statement.
Boeing announced Friday that it would slow production of its 737 MAX jets beginning in mid-April, as the airplane maker works to fix a software issue that has grounded the aircraft for the past few weeks.
The company will drop the level of production to 42 aircraft a month from its current rate of 52. Boeing said that was adjusting the 737 production systems temporarily to accommodate the pause in deliveries.
Boeing shares fell 4.4% to $374.65 in premarket trading on Monday.
4. -- Tesla in Emissions Deal With Fiat Chrysler
Tesla (TSLA) - Get Report was rising 1.7% in premarket trading Monday following reports it has agreed to a deal with Fiat Chrysler (FCAU) - Get Report that would count thr electric vehicle company's cars among the U.S.-Italian automaker's fleet in order to reduce its overall emissions output.
The agreement, which would allow Fiat Chrysler to avoid punitive European Union fines, would see Fiat Chrysler paying "hundreds of millions" in fees to Tesla in order to create an "open pool" of cars that would collectively lower Fiat's overall emissions reading, according to the Financial Times.
Analysts at Macquarie investment bank estimated the total payout could be as high as $750 million.
"FCA is committed to reducing the emissions of all our products," the company said in a statement Monday. "The purchase pool provides flexibility to deliver products our customers are willing to buy while managing compliance with the lowest cost approach."
"The whole point of a CO2 credit market is to leverage the most cost-effective ways to reduce overall GHG (Greenhouse Gas) emissions in the market," the company said.
5. -- 'Shazam!' Debuts With Sales of $53.5 Million
"Shazam!" racked up $53.5 million in ticket sales over the weekend, according to studio estimates Sunday.