The Dow Jones today will attempt to rebound from Monday's huge sell-off. Markets started the week under pressure due to a surge of new COVID-19 cases across the United States.
There is also doubt that Congress and the White House will come together on a stimulus relief plan by the election. U.S. President Donald Trump faces off against rival Joe Biden next Tuesday. Let's see what else is moving the Dow Jones now...
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
Index
Previous Close
Point Change
Percentage Change
Dow Jones
27,685.38
-650.19
-2.29
S&P 500
3,400.97
-64.42
-1.86
Nasdaq
11,358.94
-189.34
-1.64
Now, here are what I think will be the most important market events and stocks on Monday morning.
Top Stock Market Stories for Tuesday
On the coronavirus front, Johns Hopkins University said that COVID-19 cases surpassed 83,000 per day on Friday and Saturday. Cases continue to rise across the country with uncertainty around the efficacy of a new vaccine. This morning, Eli Lilly and Co. (NYSE: LLY) announced that its antibody drug study would be ending early. According to the Institute of Allergy and Infectious Diseases, which co-sponsored the drug study, the vaccine candidate offered a low chance of benefit from the antibodies.
Caterpillar Inc. (NYSE: CAT) leads a busy morning of earnings reports Tuesday. The company's stock was off 3% after the construction and mining equipment manufacturer reported mild earnings and revenue. Despite beating expectations from Wall Street, the firm did report a 23% decline in construction industrial sales year over year. The company also failed to provide forward guidance. Shares had been up about 16% year to date.
In Washington, we have a new Supreme Court justice. Amy Coney Barrett has replaced Ruth Bader Ginsburg and will likely start work in Washington today. The 48-year-old was confirmed on Monday on a party-line vote 52-48. Barrett's elevation to the nation's highest court will cement a conservative majority at 6-3 and could alter the landscape of policy across the nation for a generation.
Stocks to Watch Today: XILX, AMD, MSFT, SCHW
In deal news, shares of Xilinx Inc. (NASDAQ: XLNX) surged by 10% after rival Advanced Micro Devices Inc. (NYSE: AMD) announced plans to purchase the firm for $35 billion. AMD stock fell by 5%. However, the deal sees two leading semiconductor manufacturers merge at a time of heavy consolidation in the space.
Shares of Microsoft Corp. (NASDAQ: MSFT) are in focus as the software giant prepares to report earnings later this afternoon. The company is expected to report strong revenue growth compared to the same time last year. MSFT reported a 13% uptick in revenue during the second quarter of the pandemic.
Shares of Charles Schwab Corp. (NASDAQ: SCHW) are flat after the company announced plans to lay off 1,000 employees. The layoffs come as the first prepares to complete its merger with TD Ameritrade. The firm says that the $26 billion merger between the discount brokerages created a variety of overlaps and redundancies across departments.
Today, we're looking at another busy day of corporate earnings. Look for reports from 3M Co. (NYSE: MMM), Harley-Davidson Inc. (NYSE: HOG), JetBlue Airways Corp. (NASDAQ: JBLU), and Raytheon Technologies Corp. (NYSE: RTX).
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Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.