Futures nudge higher
U.S. stock futures suggest a firmer open for Wall Street on Tuesday after the Dow Jones Industrial Average ended the previous session with a loss of 410.89 points, or 1.4%. The S&P 500 also tumbled, closing 1.6% lower to 3,426.92 while the technology-heavy Nasdaq Composite shed 1.7% to end the session at 11,478.88.
By 4:45 a.m. ET, futures tied to the Dow were indicated 131 points, or 0.47% higher to 28,23. The S&P 500 futures were up 18.68 points, or 0.55% to 3,441.38 while the tech-heavy Nasdaq 100 futures added 70.75 points, or 0.61% to 11,721.
Notable companies set to report earnings today include streaming video giant Netflix (NASDAQ: NFLX), Philip Morris (NYSE: PM), Texas Instruments (NASDAQ:TXN), Lockheed Martin (NYSE: LMT), and Procter & Gamble (NYSE: PG).
Stimulus talks set to get underway
Meanwhile, the office of House Speaker Nancy Pelosi issued a statement late Monday saying that she and Treasury Secretary Steven Mnuchin “continued to narrow their differences” and that she should have some clarity before the end of the day today, on whether a coronavirus relief package can be passed ahead of Election Day.
The statement said Pelosi and Mnuchin agreed to hold talks again today, and staff working on the matter will continue around the clock. Pelosi has told the White House it had until today to agree on a deal with Democrats.
Her aide suggested that continuing discussions would be increasingly unlikely to provide sweeping relief legislation worth trillions of dollars within the next two weeks should the deadline pass without a deal.
ConocoPhillips agrees to acquire Concho in $9.7 billion deal
ConocoPhillips (NYSE: COP) said Monday it is buying rival Concho Resources (NYSE: CXO) billion in an all-stock deal that will solidify ConocoPhillips as Alaska’s largest oil producer.
ConocoPhillips will swap 1.46 of its shares for each share of Concho in a deal that values the company at about $9.7 billion, or about $13 billion including Concho’s existing debt. That represents a 15% premium to the closing price of Concho’s share on October 13.
The combined company is expected to control 23 billion barrels of oil-equivalent resources with a supply cost of less than $40 per barrel, with an average below $30.
“Today’s transaction is an affirmation of our commitment to lead a structural change for our vital industry. Together, ConocoPhillips and Concho will have unmatched scale and quality across the important value drivers in our business,” said Conoco chief executive Ryan Lance.
