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Dow Futures Rise 336 Pts; Corporate Deals in Focus

Stock MarketsSep 28, 2020 07:09AM ET
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© Reuters.

By Peter Nurse   

Investing.com - U.S. stocks are set to open higher Friday, bouncing back after the recent selloff with a series of M&A deals suggesting increasing corporate confidence despite rising coronavirus cases and political uncertainty. 

At 7:10 AM ET (1100 GMT), S&P 500 Futures traded 41 points, or 1.3%, higher, the Dow Futures contract rose 336 points, or 1.2%, while Nasdaq 100 Futures climbed 175 points, or 1.6%. 

The major U.S. cash indexes weakened last week, their fourth week of losses in a row. This selloff has largely been duplicated overseas, and companies are now seeing bargains to be snapped up.

Cleveland-Cliffs (NYSE:CLF), the largest U.S. producer of iron ore pellets, has agreed to buy the U.S. assets of the world's largest steelmaker ArcelorMittal (NYSE:MT) for about $1.4 billion in cash and shares.

Caesars (NASDAQ:CZR) Entertainment is in advanced discussions to buy the U.K. bookmaker William Hill (LON:WMH), while the Wall Street Journal reported that battered energy companies WPX (NYSE:WPX) and Devon Energy (NYSE:DVN) are in talks to merge.

However, despite this apparent corporate confidence there still remains a great deal of uncertainty over the political and economic landscape, as well as a rising number of coronavirus cases.

President Donald Trump and former Vice President Joe Biden square off on Tuesday in their first election debate, five weeks ahead of polling day, against the backdrop of a New York Times’ investigation into the president’s taxes.

The prospect of further U.S. stimulus remains a key focus. House Speaker Nancy Pelosi on Sunday said another coronavirus stimulus plan is possible with House Democrats planning an aid package of about $2.4 trillion. However, this is more than Republicans have indicated they are prepared to accept and a deal is unlikely.

Meanwhile, the United States recorded 58,461 new cases of Covid-19 on Friday, the highest one-day increase since Aug. 7, while New York City posted its first 1,000-case day since June.

The economic data slate is largely empty Monday. The key release this week will be Friday’s official employment report, which will be the final U.S. jobs report before the presidential election.

In corporate news, aside from the M&A news, the saga surrounding TikTok continued as a U.S. judge late on Sunday temporarily blocked a Trump administration order that was set to ban the video-sharing app from download on app stores at Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOGL).

Oil prices weakened Monday, with the major oil benchmarks on course to end the month lower, as rising coronavirus cases threaten hopes of a recovery in demand across the world. 

U.S. crude futures traded 0.3% higher at $40.36 a barrel, while the international benchmark Brent contract rose 0.1% to $42.45. Brent is on track for its first monthly loss in six while WTI is headed for its first monthly drop since April.

Elsewhere, gold futures fell 0.2% to $1,862.15/oz, while EUR/USD traded 0.3% higher at 1.1662.

 

Dow Futures Rise 336 Pts; Corporate Deals in Focus
 

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Comments (3)
SORE LOSR TRMP SORE LOSR TRMP
SORELOSRTRMP Sep 28, 2020 9:12PM ET
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Trump Still pickin on thirteen year olds' app tik tok as a hookup to marc zuckerburg
Andrew carson
Andrew carson Sep 28, 2020 8:22AM ET
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Corporate deals to try and survive.
John Klan
John Klan Sep 28, 2020 8:20AM ET
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Seems to make sense. we're doing ten times more testing so of course they'll find more cases. There a far fewer hospitalizations and people actually dying from it now. I guess they just forgot and left those little facts out.
Brady Murray
Brady Murray Sep 28, 2020 8:20AM ET
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Yep. Conveniently left out as usual. Testing is through the roof.
CJ Battle
CJ Battle Sep 28, 2020 8:20AM ET
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while I agree with the logic you presented behind the recent numbers, I'm often amazed at how little we as americans acknowledged how poorly we handled this epidemic.
 
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