1. Dow to rise on US-China trade deal but sinking Boeing shares limit gains
U.S. stock futures were pointing to a 65-point advance for the Dow Jones Industrial Average at Wall Street's open on Monday. The Dow was getting a boost from Friday's announcement of a "phase-one" trade deal between the U.S. and China. But the blue-chip average would be tracking for double that advance if not for Boeing shares being down about 3% in the premarket. The Wall Street Journal reports that Boeing could disclose as early as Monday a decision on whether to further cut or suspend production of its grounded 737 Max. The S&P 500 and Nasdaq were coming off record closing highs, with slim gains Friday. The Dow also was nearly unchanged. Heading into Monday's trading, it was 32 points away from record high close last month.
2. US Trade Rep Lighthizer says first-step trade agreement 'totally done'
U.S. Trade Representative Robert Lighthizer said Sunday the first-step U.S.-China trade agreement is "totally done." However, Chinese purchases of U.S. agricultural purchases, a critical aspect of the deal, remains in question, with American officials mentioning hard targets amounts of nearly $50 billion, which Chinese officials have yet to acknowledge publicly. It's still unclear how and when the U.S. will roll back other tariffs, a Chinese condition for the deal. Both sides still need to sign the text of an agreement, which Chinese officials said requires legal review and translation. Lighthizer said both countries hope to sign the deal in Washington in early January, and there would be no new tariffs as long as China negotiates in good faith.
3. Report on Trump impeachment released as full House gears up for vote
The House Judiciary Committee released its full report on the impeachment of President Donald Trump early Monday, ahead of consideration by the full House as early as Wednesday. Senate Minority Leader Chuck Schumer, D-N.Y., proposed terms on Sunday for a likely impeachment trial in the Senate, including calling former national security adviser John Bolton and acting White House chief of staff Mick Mulvaney as witnesses. The terms laid out in a letter to Senate Majority Leader Mitch McConnell, R-Ky., was evidence that Democrats are seeking an evidentiary trial, not intending to rely on the House investigation. McConnell responded that he would meet with Schumer "soon" to discuss plans for a possible trial.
4. Warren calls out Dimon and the BRT over the purpose of a corporation
Democratic presidential candidate Sen. Elizabeth Warren is taking J.P. Morgan Chairman and CEO Jamie Dimon and the Business Roundtable to task over its August commitment to "redefine" the purpose of a corporation to extend beyond the maximization of shareholder profits. Dimon is head of the association. In an interview with CNBC's John Harwood published on Monday, Warren also said that "government listens disproportionately to rich guys who don't want to pay taxes." She added: "The folks at the top, they get heard all the time in Washington. I want middle-class families to get heard in Washington."
5. IFF to merge with DuPont's nutrition unit to create a new consumer giant
International Flavors & Fragrances has agreed to merge with DuPont's nutrition and biosciences unit in a deal that would create a new consumer giant valued at more than $45 billion. Under the agreement, DuPont shareholders will own 55.4% of the shares of the new company, and existing IFF shareholders will own 44.6%. Industrial materials maker DuPont will receive a one-time cash payment of $7.3 billion upon closing of the deal. IFF also said its largest shareholder, Winder Investments, has agreed to vote in favor of the deal. In premarket trading, shares of IFF were losing about 6% while DuPont shares were gaining about 4.5%.