Here are five things you must know for Monday, Oct. 12:
1. — Stock Futures Edge Higher Amid Stimulus Uncertainty
Stock futures edged higher Monday amid uncertainty over the prospects for further fiscal stimulus and as investors prepared for quarterly earnings reports from the biggest banks in the United States.
Contracts linked to the Dow Jones Industrial Average rose 59 points, S&P 500 futures were up 23 points and Nasdaq futures rose 199 points.
Stocks closed higher Friday after the White House raised its coronavirus aid proposal to $1.8 trillion, up from $1.6 trillion. The offer, however, still remains below the latest proposal of $2.2 trillion from Nancy Pelosi and House Democrats.
Pelosi rejected the latest Trump proposal as “one step forward, two steps back,” but said she was still hopeful progress can be made toward a relief package.
“I remain hopeful that (Friday’s) developments will move us closer to an agreement on a relief package that addresses the health and economic crisis facing America’s families,” Pelosi said in a letter to Saturday to colleagues.
The Dow last week jumped 3.3%, the S&P 500 rose 3.8% – its best week in three months – and the Nasdaq gained 4.6%.
2. — JPMorgan Chase and Citigroup Kick Off Earnings Season
Earnings reports are expected this week from JPMorgan Chase (JPM) – Get Report, Citigroup (C) – Get Report, Bank of America (BAC) – Get Report, Wells Fargo (WFC) – Get Report, Goldman Sachs (GS) – Get Report, Morgan Stanley (MS) – Get Report, Johnson & Johnson (JNJ) – Get Report, Delta Air Lines (DAL) – Get Report, United Airlines (UAL) – Get Report, UnitedHealth (UNH) – Get Report, BlackRock (BLK) – Get Report and Walgreens Boots Alliance (WBA) – Get Report.
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The economic calendar in the U.S. Monday is light because of the Columbus Day holiday. The Consumer Price Index, weekly Jobless Claims and Retail Sales for September will be released later in the week.
3. — Apple Begins Shipping Devices From Retail Stores
Apple (AAPL) – Get Report has begun shipping orders directly from its retail outlets, according to a report from Bloomberg.
The tech giant typically has shipped devices like iPhones and Macs, from warehouses located across a customer’s region or directly from China. Now items that are in stock can be shipped directly to consumers from a network of almost 300 retail stores spread across the U.S. and Canada, Bloomberg reported, citing people familiar with the matter.
Apple’s products will be shipped through United Parcel Service (UPS) – Get Report in Canada and FedEx (FDX) – Get Report via ground shipping. The program will apply to customers who live within 100 miles from a store, the people told Bloomberg.
The delivery changes come just as Apple gets set to launch a bevy of new products, including the 5G-capable iPhone 12, on Tuesday.
Apple Maven Daniel Martins said he expects the new iPhone 12 to be available as soon as possible in the U.S., since the country likely will be Apple’s “battleground market” in its fight for 5G market share against Samsung.
4. — Mallinckrodt Files for Bankruptcy Protection
Drugmaker Mallinckrodt (MNK) – Get Report became the third major opioid producer to file for bankruptcy, weighed down by thousands of lawsuits from states, cities and counties that blame drugmakers and distributors for the epidemic of overdose deaths.
“After many months of deliberation, negotiation and consideration of alternatives, Mallinckrodt’s management and board of directors determined that implementing a Chapter 11 restructuring provides the best opportunity to maximize the value of the enterprise and position the company for the future in light of the current challenges it faces,” said Mark Trudeau, Mallinckrodt’s president and CEO.
The company said it entered into a restructuring agreement that would reduce its debt by about $1.3 billion. The company also said it aims to resolve all opioid litigation while in bankruptcy protection.
Purdue Pharma, which entered Chapter 11 protection in September 2019, has proposed a $10 billion settlement of existing claims. Insys Therapeutics also filed for bankruptcy in 2019.
Mallinckrodt shares closed Friday at 75 cents.
5. — Lakers Win the NBA Finals
LeBron James had 28 points, 14 rebounds and 10 assists, and the Los Angeles Lakers beat the Miami Heat 106-93 on Sunday night to win the NBA Finals in six games.
James won his fourth title, and his fourth Finals MVP, and the Lakers won their 17th title, tying the team with the Boston Celtics for the most ever.