Here are five things you must know for Monday, Nov. 9:
1. — Stock Futures Rally on Biden Win
Stock futures were rising sharply Monday after Joe Biden was declared the winner of the presidential election over the weekend and began outlining his plans for when he takes offices in January.
Contracts linked to the Dow Jones Industrial Average jumped 395 points, S&P 500 futures were up 50 points and Nasdaq futures gained 221 points.
Biden promised that on his first day as president he would tackle the coronavirus pandemic that has now claimed the lives of nearly 238,000 Americans and infected almost 10 million. New daily case counts were topping 125,000, according to Johns Hopkins University.
In creating a new, science-based task-force and seven-point plan to tackle the outbreak, President-elect Biden said he would “spare no effort” to “turn around this pandemic” in order to get the struggling U.S. economy back on track.
Most on Wall Street expect a Biden presidency and a Senate still controlled by Republicans would allow for a continuation of the pro-business policies of the Trump administration.
For markets, said Joyce Chang, chair of global research at J.P. Morgan Securities, “this is likely the best of both worlds.”
Both Asian and European stocks rose sharply on Monday following Biden’s win.
For more on Asian markets read:
2. — McDonald’s and Beyond Meat Report Earnings
Earnings reports are expected Monday from McDonald’s (MCD) – Get Report, Beyond Meat (BYND) – Get Report, Norwegian Cruise Line (NCLH) – Get Report, Nikola (NKLA) – Get Report, Occidental Petroleum (OXY) – Get Report, Simon Property (SPG) – Get Report, Canopy Growth (CGC) – Get Report, Inovio Pharmaceuticals (INO) – Get Report, Plug Power (PLUG) – Get Report, Tilray (TLRY) – Get Report and Novavax (NVAX) – Get Report.
Later in the week reports will be issued by Walt Disney (DIS) – Get Report, Lyft (LYFT) – Get Report, Cisco Systems (CSCO) – Get Report, Applied Materials (AMAT) – Get Report and DraftKings (DKNG) – Get Report.
The economic calendar in the U.S. Monday is light. Jobless Claims, the Consumer Price Index, the Producer Price Index and the Consumer Sentiment survey will be released later in the week.
3. — FDA Panel Votes Against Biogen Alzheimer’s Treatment
The FDA’s Peripheral and Central Nervous System Drugs Advisory Committee voted 8-1 against recommending approval of Biogen’s aducanumab. Two other members of the panel voted “undecided.”
The FDA doesn’t have to follow the advice of an advisory committee but does typically.
Trading in Biogen was halted Friday ahead of the FDA advisory committee meeting. Earlier last week, the stock soared 44% following a positive FDA report on aducanumab.
Analysts at Baird wrote the chances of the Alzheimer’s treatment receiving FDA approval “in the face of such an overwhelmingly negative vote and commentary” was “virtually impossible.”
4. — EU to Impose Tariffs on U.S. Goods
The move comes a year after the World Trade Organization authorized the U.S. to slap penalties on EU goods worth up to $7.5 billion over European support for Boeing rival Airbus.
“The U.S. has imposed their tariffs following the WTO ruling in (the) Airbus case, now we have a WTO ruling also in Boeing, allowing us to impose our tariffs, and that’s what we are doing,” said EU Commission Executive Vice President Valdis Dombrovskis, the Associated Press reported.
“Of course, we remain open for a negotiated solution. Our proposal remains on the table that both sides withdraw their tariffs,” Dombrovskis said, noting that despite several appeals “so far, the U.S. has not agreed to withdraw their tariffs.”
The Europeans are hopeful that the tough trade stance of President Trump will soften under President-elect Joe Biden, the Associated Press noted.
5. — Berkshire Hathaway’s Operating Profit Dented by Pandemic
Most of Berkshire Hathaway’s overall earnings gains benefited from a rally in the stock market, which lifted the estimated value of Berkshire’s investments by $24.8 billion.
The company’s operating earnings in the period declined by 32%.
Profit at Berkshire Hathaway’s BNSF railroad fell by 8% to $1.35 billion as the pandemic continued to slow freight traffic.
Berkshire Hathaway bought back $9 billion of its own stock during the third quarter.