Big-bank earnings on watch
U.S. stock futures pointed to a mixed open for Wall Street on Monday as traders awaited the start of third-quarter earnings reports to see what clues companies can give about the economy.
Results start to trickle in with banking giants Citigroup (NYSE: C) and JPMorgan Chase (NYSE: JPM) reporting ahead of the opening bell tomorrow.
Goldman Sachs Group (NYSE: GS), Bank of America (NYSE: BOC), and Wells Fargo (NYSE: WFC) report on Wednesday. Morgan Stanley (NYSE: MS) will publish its results on Thursday.
As of 5:40 a.m. ET, futures tied to the blue-chip Dow fell 7 points, to 28,511. The S&P 500 futures were up 11.37 points, or 0.33% to 3,484.62 while the tech-heavy Nasdaq 100 futures rose 122.13 points, or 1.04% to 11,846.88.
Democrats and Republicans resist Trump’s new stimulus offer
Meanwhile, President Donald Trump’s most recent proposal for a large coronavirus relief package has drawn the resistance from both Democrats and Republicans, lowering the chances the two sides will agree on a deal ahead of the election.
The White House raised its offer to $1.8 trillion on Friday, up from $1.6 trillion. House Speaker Nancy Pelosi called the offer a “miserable and deadly failure.” Pelosi’s latest proposal was about $2.2 trillion, but that included a business tax hike that Republicans won’t accept.
Concerns remain that the White House and Congress will not deliver more relief for the economy as it recovers from the coronavirus pandemic.
Last week, Federal Reserve chairman Jerome Powell urged lawmakers to enact more stimulus aid for struggling Americans, and warned a second coronavirus wave could hit the economy hard. Treasury Secretary Steven Mnuchin and Pelosi are expected to continue talks this week.
Mallinckrodt files for chapter 11 bankruptcy protection
Mallinckrodt (NYSE: MNK) filed Monday for voluntary restructuring under chapter 11 of the U.S. bankruptcy code to confront legal issues related to opioids and its top-selling Acthar Gel.
The opioid maker listed both assets and liabilities in the range of $1 billion to $10 billion in a filing with the U.S. Bankruptcy Court for the District Of Delaware.
According to the filing, the company will implement a restructuring support agreement that would provide for an amended proposed opioid claims settlement and a financial restructuring.
Mallinckrodt is now the third major drugmaker to file for bankruptcy protection after being hit with claims it profited from fueling the U.S. opioid epidemic. The company hopes to complete the settlement over the next several months.
Amy Coney Barrett confirmation hearing kicks off today
In other news, the confirmation hearing for Judge Amy Coney Barrett, Trump’s pick for the U.S. Supreme Court, starts today with opening statements.
Barrett will face questioning from Senate Judiciary Committee members, including Democratic vice presidential candidate Kamala Harris on Tuesday and Wednesday. Outside witnesses will testify on Thursday.
Senate Democrats object moving forward with the confirmation process because the election is weeks away, arguing that Senate Majority Leader Mitch McConnell, blocked action on then-President Barack Obama’s choice for a vacancy ahead of the 2016 election.
McConnell says this situation is different, insisting that voters elected the president and a GOP majority to confirm judicial nominees.