The daily business briefing: May 1, 2019

1. Apple surges on strong next-quarter guidance

Apple shares jumped by more than 4 percent in after-hours trading on Tuesday after the iPhone maker reported quarterly earnings that met predictions and provided guidance for the next quarter that exceeded expectations. Apple said its earnings per share came in at $2.46, above the $2.36 average Refinitiv estimate. Revenue was $58.02 billion, compared to the Refinitiv consensus forecast of $57.37 billion, but iPhone revenue fell by 17.3 percent year-over-year to come in at $31.05 billion, just under expectations of $31.10 billion. The stronger than expected guidance was widely interpreted as an indication that the company expected iPhone demand to stabilize and that the company's services business would keep growing.

CNBC

2. Trump calls on the Fed to cut interest rates

As Federal Reserve leaders met to discuss plans on interest rates and other policies, President Trump tweeted that the economy was doing well but would "go up like a rocket" if the Fed would cut interest rates. He said "some quantitative easing" would help, too, referring to the central bank's efforts to boost the economy by purchasing bonds. Trump has said the Fed's four interest rate hikes last year hindered growth, citing China as a country that has given its economy "great stimulus." Trump has considered putting allies on the Fed board to bring it in line with his thinking. One, former presidential candidate Herman Cain, has withdrawn from consideration. The other, conservative commentator Stephen Moore, has come under pressure for past comments about women.

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The Associated Press

3. Democrats announce $2 trillion infrastructure plan after Trump meeting

Democratic leaders said Tuesday that they reached an agreement with President Trump to spend $2 trillion on upgrading the nation's roads, bridges, railroads, and other infrastructure. Senate Minority Leader Chuck Schumer (D-N.Y.), and House Speaker Nancy Pelosi (D-Calif.) made the announcement after a meeting with Trump in the White House. The two sides did not strike a deal on how to pay for the improvements, but White House Press Secretary Sarah Sanders said the meeting was "excellent and productive." Schumer said there was "good will" at the meeting, which he noted "was different than some of the other meetings that we've had." Schumer and Pelosi said they would meet again with Trump in three weeks to discuss funding.

ABC News NPR

4. Whistleblowers say drug company bribed doctors

Two whistleblowers said Questcor Pharmaceuticals bribed doctors to boost sales of H.P. Acthar Gel, a drug used to treat a rare infant seizure disorder, according to court documents released this week. The company has raised Acthar's price from $40 a vial in 2000 to nearly $39,000, one of the largest drug price hikes in U.S. history. The whistleblowers said Questcor, now Mallinckrodt, "has cheated the federal government out of millions of dollars that should not have been paid, thereby enriching [the company] and subjecting patients to unapproved, unsafe, and potentially ineffective uses" of the drug. The Justice Department has investigated and is intervening in the case. Mallinckrodt, which bought Questcor in 2014, blamed the previous management. The suit said the "illegal practices" continued after the merger.

CNN

5. Stock indexes rise ahead of more earnings reports, Fed statement

U.S. stock indexes rose slightly Wednesday morning ahead of another batch of corporate earnings and the end of a two-day meeting of Federal Reserve policy makers. The Dow Jones Industrial Average and the S&P 500 were up by 0.24 percent and 0.13 respectively, while those of the Nasdaq gained 0.4 percent. The Dow and the S&P 500 posted modest gains on Tuesday, while the Nasdaq Composite edged lower. GlaxoSmithKline, Qualcomm, CVS Health, Yum Brands, and Fitbit are among the companies reporting quarterly results on Wednesday. The Fed is expected to keep interest rates unchanged. Investors will be watching the central bank's post-meeting statement for signs of where Fed policy is heading.

CNBC