What's moving markets today: May 2, 2019

By CNN Business

Updated 7:09 p.m. ET, May 2, 2019
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8:04 a.m. ET, May 2, 2019

Dunkin' has upped its breakfast game, and the strategy is working

From CNN Business' Danielle Wiener-Bronner

Dunkin' has upped its coffee game and rolled out new breakfast deals, and it's paying off.

The company announced on Thursday that sales in US stores open at least a year jumped 2.4% in the first quarter, beating analysts' expectations, thanks in part to higher-priced espresso and frozen drinks and its breakfast sandwich value deals.

Breakfast is a growing category, and Dunkin' (DNKN) is doing more than just offering deals to try to cash in. On Monday, the chain shared that it has has added two new breakfast bowls to its menu: The Egg White Bowl and the Sausage Scramble Bowl. Its competitors are also introducing new breakfast items to their menus.

Revenues for the first quarter grew about 5.9% to $17.7 million, or 5.9%, largely because of higher royalty and rental income, the company said.

Investors rewarded the good results: Dunkin' popped about 2% before the market opened.

They don't seem to care about Dunkin's struggling ice cream business. In the first quarter, sales at Baskin-Robbins US stores open at least a year fell sales dropped 2.8%.

6:26 a.m. ET, May 2, 2019

Shell earnings beat expectations

From CNN Business' Charles Riley

Shares in Royal Dutch Shell (RDSA) ticked up in London after the company's first quarter profit topped analyst expectations.

While net income declined slightly from the previous year to $5.4 billion, the oil company reported strong growth in its trading and natural gas businesses.

Crude oil prices zoomed higher in the first three months of 2019, but they were still much lower on average than the same period a year ago.

That has weighed on results from rival producers including Exxon Mobil (XOM) and BP (BP), both of which reported steep profit declines for the first quarter.

6:20 a.m. ET, May 2, 2019

Volkswagen proves its resilience

From CNN Business' Charles Riley

German auto giant Volkswagen (VLKAF) delivered fewer cars in the first quarter, but a strong performance by its financial services division led to a revenue increase of 3.1%.

Profits of €3.9 billion ($4.4 billion) were in line with analyst expectations.

Volkswagen said it had set aside another €1 billion ($1.1 billion) to cover costs related to its diesel emissions scandal. It also reported lower revenue from its Porsche and Audi brands.

Yet the company stuck with its 2019 forecasts for profit and sales, which call for a slight increase in deliveries over last year. Carmakers are facing tough conditions this year including weakness in China.

Shares in Volkswagen increased 5% in Frankfurt.

6:23 a.m. ET, May 2, 2019

Central banks on hold

From CNN Business' Charles Riley

The US Federal Reserve on Wednesday left its key benchmark rate unchanged despite renewed calls by President Trump for lower interest rates.

Policymakers led by Fed Chairman Jerome Powell unanimously agreed to leave rates alone, sticking with the wait-and-see approach outlined earlier this year.

"We don't see a strong case for moving in either direction," Powell said at a press conference. "The committee is comfortable with our current policy stance."

The Bank of England will announce its latest policy decision on Thursday. The central bank is expected to leave interest rates unchanged amid continued uncertainty over the outlook for the British economy because of confusion over Brexit.

6:22 a.m. ET, May 2, 2019

Checking in on global markets

From CNN Business' Charles Riley

Here's what investors are keeping an eye on today:

  • CIGNA (CI), DowDuPont (DWDP), Dunkin' Brands (DNKN), Hanesbrands (HBI), Kellogg (K), Under Armour (UAA) and Wayfair (W) release earnings before the opening bell.
  • Up after the close: Activision Blizzard (ATVI), CBS (CBS), Con Edison (ED), Expedia (EXPE), GoDaddy (GDDY), Monster Beverage (MNST), Shake Shack (SHAK), US Steel (X) and US Cellular (USM).
  • US data on jobless claims will be released at 8:30 a.m. ET.