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Stocks Jump, Trump's Tax and Uber Licenses: What's up in Markets on Monday

EconomySep 28, 2020 07:02AM ET
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© Reuters.

By Geoffrey Smith 

Investing.com -- Donald Trump's tax returns are leaked by the NYT; the TikTok ban is struck down by a Washington district court. Stocks are set to jump in what looks more like a correction than anything else; Uber (NYSE:UBER) gets its London license back and the pound jumps as the last round of Brexit talks starts. What's moving markets on Monday, September 28th.

1. Trump's tax returns lack punch

The New York Times released an in-depth expose of President Donald Trump’s tax returns, which showed that he paid only $750 in income tax in the year he was elected.

The disclosures failed to disclose much in broad terms about Trump’s businesses that was not already known, but confirmed the general picture that he had used all of his TV income and more to cross-subsidize vanity projects such as his various golf courses.

It seems unlikely that that will do much to erode support among the President’s core voter base, even if it provides Democratic Party candidate Joe Biden with a useful line of attack in Tuesday’s first debate of the presidential election campaign.

2. TikTok ban struck down; Coney Barrett nominated to succeed RBG

Trump had a busy weekend in other respects too, nominating Amy Coney Barrett to fill the Supreme Court vacancy left by liberal champion Ruth Bader Ginsburg.

Coney Barrett, a federal judge and a staunch Roman Catholic who once served as clerk to the late Antonin Scalia, would widen the conservative majority in the Supreme Court to 6-3, if confirmed by the Republican-controlled Senate – as seems likely.

Elsewhere, a district court in Washington DC struck down Trump’s attempt to ban downloads of the Chinese lip-synching app TikTok. The Commerce Department still plans to render the app unusable in the U.S. from November 12, unless the U.S., China and the company’s owners can hammer out a compromise that satisfies all sides. The U.S. also unveiled fresh measures to restrict sales of sensitive equipment to Chinese chipmaker SMIC.

3. Stocks bounce hard in correction 

U.S. stock markets are set to open sharply higher, helped partly by the lack of a killer punch in the NY Times’ tax disclosures but driven largely by what appeared to be bargain-hunting after four weeks of losses in the major indexes.

By 6:30 AM ET (1030 GMT), the Dow 30 futures contract was up 358 points, or 1.3%, while S&P 500 Futures were up 1.7%.

There was little in the way of fundamental news to change the picture that has driven the last month’s losses. The Covid-19 virus continues to spread rapidly through  the northern hemisphere with the onset of autumn, with France, the U.K. and other European countries all tightening local restrictions on gatherings.

Stocks likely to be in focus later include Uber, which regained its license to operate in London, one of its biggest markets outside the U.S., after a successful legal appeal. Also in the spotlight will be Caesars (NASDAQ:CZR) Entertainment, whose $3.7 billion offer for U.K. bookmaker William Hill  (OTC:WIMHY) was lower than speculated on Friday.

4. First European exchange hits post-pandemic all-time high 

William Hill was one of few losers in European markets in early trading, with most rebounding sharply after last week’s losses.

The modest Copenhagen market became the first European index to post an all-time high since the pandemic started, rising 1.1% to 1,349.46 points. Copenhagen’s OMX Copenhagen 20 index is notable for its concentration of renewable energy stocks, including wind farm operator Orsted (OTC:DOGEF) and wind turbine maker Vestas Wind Systems AS (OTC:VWDRY), which have ridden a wave of buying from ESG-themed investors this year.

The OMXC 20 also includes healthcare and biotech names such as Novo Nordisk (NYSE:NVO), Novozymes (OTC:NVZMY) and Coloplast A (OTC:CLPBY), all of which have fared well against the backdrop of the pandemic.

At 9:45 AM ET (1345 GMT), ECB President Christine Lagarde will address the European parliament, while board member Isabel Schnabel is due to speak at a separate event.

5. Pound leaps on rate comments, Brexit talks

The pound rose to a three-week high against the euro and a 10-day high against the dollar on renewed hopes of a deal to regulate the U.K.’s trading arrangements with the EU after its Brexit transition period expires at the end of the year.

Sterling had slid more than 3% since the start of the month on fears that the U.K. government was willing to accept a disorderly scenario of customs backlogs and a new hard border on the island of Ireland, a result of preferring sovereignty over local standards to frictionless trade with its biggest trade partner.

The pound was supported by comments from Bank of England Monetary Policy Council member Dave Ramsden playing down the prospect of negative rates in the near future.

Stocks Jump, Trump's Tax and Uber Licenses: What's up in Markets on Monday
 

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Comments (12)
Jo Va
Jo Va Sep 28, 2020 3:38PM ET
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After trump announces he refuses to leave the WH will be the time to buy. The markets should drop like a rock with that chaos and uncertainty.
Bret Lafrance
Bret Lafrance Sep 28, 2020 12:37PM ET
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“lacks punch”. Only if your committed to the insanity of this man being president for some unknown reason, just more garbage to sift through
Tom Romero
Tom Romero Sep 28, 2020 10:09AM ET
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Although dishonesty and corruption have become commonplace in Trump's administration, proof of the president's fraud being made public cannot and should not be described as "lacking punch". Making light of criminal behavior by the president can only be described as lacking integrity.
Eudon Hickey
Eudon Hickey Sep 28, 2020 10:09AM ET
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Would be interesting to see Obama and Clinton’s tax returns too.Why stop there, show Biden and Pelosi too
Clinton Powell
Clinton Powell Sep 28, 2020 10:09AM ET
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Absolutely!!!!!
Tom Romero
Tom Romero Sep 28, 2020 10:09AM ET
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They have all been previously released voluntarily.
Tre Hsi
Tre Hsi Sep 28, 2020 10:09AM ET
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Eudon Hickey  "Would be interesting to see Obama and Clinton’s tax returns too.Why stop there, show Biden and Pelosi too"  --- goes to show you how uninformed Trump supporters are, I guess they all think it's fake news that Trump was the first presidential candidate since FDR to NOT release his income tax returns, everyone from Obama to Biden to both Clintons to Reagan to Nixon (yes, even him)
Kelly Mayer
Kelly Mayer Sep 28, 2020 9:43AM ET
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"in-depth expose of President Donald Trump’s tax returns, which showed that he paid only $750 in income tax" - Well these kinds of news are actually an attack on business and IRS law... Just like if you own stocks, losses can be used to lower IRS taxes, which is a common thing. This is just mindless barking. Same thing as saying Trump is forfeiting his pay as president. You don't know the details of this. What matters is that he makes America wealthy again.
Ronald Warren
Ronald Warren Sep 28, 2020 9:43AM ET
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Maybe he makes you wealthy. Under his administration and tax reforms, I'm paying more on my 1040 than ever before. And. just so you know, " I made a ton of money remodeling while Obama was in office, because happy liberals like to spend money!"
Tenemos Avoir
Tenemos Avoir Sep 28, 2020 9:43AM ET
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Ronald Warren Happy liberal? Most are chronically miserable.
Jack Zhang
Jack_A Sep 28, 2020 9:43AM ET
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printing so many papers that no toilet paper was left. that's the wealth he created. LoL
Tre Hsi
Tre Hsi Sep 28, 2020 9:43AM ET
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"What matters is that he makes America wealthy again." -- I think the 20m Americans who are on unemployment benefits (and their families) may disagree with you
Victor Ravelo
Victor Ravelo Sep 28, 2020 9:23AM ET
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This is just death cat bouncing
Kelly Mayer
Kelly Mayer Sep 28, 2020 9:23AM ET
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may very well be. My bet would be inclined to go that way, yeah. Volatility is always huge during election year, and the market tends to sink from September 20 to October 20...
Michael Mroz
Michael Mroz Sep 28, 2020 9:10AM ET
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Trump forfeits his wages for being president.
Tom Romero
Tom Romero Sep 28, 2020 9:10AM ET
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His grifting and golf trips alone costs the taxpayers more than his salary...and although he claims not to take a salary, that is unproven.
Ronald Warren
Ronald Warren Sep 28, 2020 8:58AM ET
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The basic problem I have is that being self-employed I'm required to pay 15% right off the bat, before I get started paying more and we have the wealthy paying nothing.
Ronald Warren
Ronald Warren Sep 28, 2020 8:56AM ET
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If you're like me, my comments on our president's taxes are being censored.
Leon Kelly
Leon Kelly Sep 28, 2020 8:51AM ET
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well boys and girls this will be the first and last green day of the week. Seat belts on
Edward Chong
Edward Chong Sep 28, 2020 8:51AM ET
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haha i doubt . lets see
Edward Chong
Edward Chong Sep 28, 2020 8:12AM ET
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where is make no mistake? where is he hiding. look at the futures.
Ernie Keebler
Ernie Keebler Sep 28, 2020 8:10AM ET
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If people wouldn't be playing games on their phones and open their brains to the real world downturns in entertainment, travel, hospitality etc pushing down car sales, airlines, oil industry, service industry, manufacturing, and supporting industries etc instead of blindly buying stocks with stimulus funds they might want to be saving some cash for the big hit that's coming.
Tim Mcdaniel
Tim Mcdaniel Sep 28, 2020 7:29AM ET
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COVID 19 fraud spreading heavily as this twit from Reuters downplays bounce in equities as mere correction.
Vv Pp
Vv Pp Sep 28, 2020 7:29AM ET
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QAnon follower?
 
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