Morning Brief

What to watch today: Dow futures rise after Monday's nosedive

BY THE NUMBERS

Dow futures pointed to a gain at Tuesday's open after the Dow led a huge down day on Wall Street as new daily coronavirus cases spiked and talks between Democrats and the White House on reaching a fiscal stimulus deal before Election Day stalled once again. The final votes in the 2020 presidential race will be cast in exactly one week. (CNBC)

The Dow on Monday sank 650 points, or nearly 2.3%, closing below 28,000 in its biggest one-day drop since Sept. 3. The 30-stock blue chip average had plunged as much as 965 points, or 3.4%, during Monday's session. (CNBC)

A busy week of earnings releases started Tuesday morning, with three Dow stocks, 3M (MMM), Caterpillar (CAT) and Merck (MRK), as well as JetBlue (JBLU), Pfizer (PFE) and Eli Lilly (LLY), out before the bell. Microsoft (MSFT), also one of the 30 Dow components, reports quarterly results after the closing bell. (CNBC)

* Lilly antibody drug fails in a Covid-19 study; others go on (AP)

The government on Tuesday is out with September durable goods orders at 8:30 a.m. ET. The S&P/Case-Shiller report on home prices for August is released at 9 a.m. ET. The Conference Board issues its October consumer confidence index. (CNBC)

Programming note: Thursday is our Technology Executive Council Summit, featuring Frank Slootman, CEO of Snowflake; Alex Stamos, former Chief Security Officer at Facebook; Alexis Wichowski, Deputy CTO – Innovation at the City of New York; and Dr. Tom Leighton, CEO & Co-Founder of Akamai Technologies. The event will bring together CIOs, CTOs and CISOs and we encourage you to join us. Apply for a seat on the Council today.

IN THE NEWS TODAY

The seven-day average of new daily coronavirus cases in the U.S., as of Monday, reached a record of 68,767. With the fall holidays of Halloween and Thanksgiving approaching, the U.S. has now established its third peak of daily new cases with no signs of letting up. The seven-day average was up more than 22% compared with a week ago, according to a CNBC analysis of Johns Hopkins University data. (CNBC)

Amy Coney Barrett, the president's pick to replace the late liberal justice Ruth Bader Ginsburg, is expected to start work Tuesday as the newest member of the Supreme Court. The conservative 48-year-old federal appeals court judge was confirmed by the full Senate on Monday in a largely partisan 52-48 vote. Barrett takes the second of two oaths in private Tuesday. (CNBC)

With seven days to go until Election Day, Joe Biden is pushing into states that Trump had once been expected to win again. Biden on Tuesday goes to Georgia, which hasn't backed a Democrat for president since 1992. Later in the week, the Democratic presidential nominee travels to Iowa. Trump is staying focused on blue states that he flipped in 2016 such as Pennsylvania, Michigan and Wisconsin. (AP)

Xilinx (XLNX) agreed to be bought by Advanced Micro Devices (AMD) for $35 billion in stock, a deal valued at $143 per share. The deal is expected to close by the end of 2021. Separately, AMD reported better-than-expected profit and revenue for its latest quarter. Xilinx rose 11%, while AMD lost 2% in premarket trading. (CNBC)

STOCKS TO WATCH

Shares of 3M rose in the premarket after the industrial giant reported better-than-expected adjusted third-quarter earnings of $2.43 per share. Revenue of $8.35 billion also beat estimates on strong sales of personal-safety and health equipment.

Caterpillar shares fell in the premarket after the company reported a 54% drop in earnings in the third quarter as equipment sales declined across all regions and segments. However, Caterpillar did beat estimates with adjusted earnings per-share of $1.34 and revenue of $9.9 billion.

Shares of JetBlue rose in the premarket after the airline reported a smaller-than-expected third-quarter adjusted loss of $1.75 per share. Revenue of $492 million, while down 76% as air travel slumped in the pandemic, was better than analysts had expected. JetBlue sees an average daily cash burn of $4 million to $6 million in the fourth quarter after a burn of $6.1 million per day in the third.

Merck shares increased in the premarket after the drug company beat estimates with third-quarter adjusted earnings of $1.74 per share and with revenue of $12.55 billion. Merck raised its full-year earnings forecast, driven by resilient demand for its blockbuster cancer therapy Keytruda.

Shares of Pfizer rose in the premarket after the drugmaker issued mixed third-quarter results, beating estimates with adjusted earnings of 72 cents per share but missing on revenue of $12.13 billion. Pfizer also said its late-stage coronavirus vaccine trial has enrolled more than 42,000 volunteers.

Eli Lilly shares dropped in the premarket after the company missed estimates with adjusted third-quarter earnings of $1.54 per share and with revenue of $5.74 billion. Lilly blamed increased costs to develop Covid-19 treatments and lower demand for some its medicines.

Stanley Black & Decker (SWK) reported quarterly earnings of $2.89 per share, beating the consensus estimate of $2.73 a share. Revenue came in below Wall Street forecasts, however, with the company saying shipments in its tools and storage segment were shifted into the current quarter from September.

Harley-Davidson (HOG) earned 78 cents per share for the third quarter, well above the consensus estimate of 21 cents a share. Revenue also came in well above forecasts. Profit improved from a year ago as Harley continues its turnaround effort.

American International Group (AIG) plans to spin off its life insurance business into a separate company. AIG's current CEO, Brian Duperreault, will be replaced by AIG President Peter Zaffino on March 1.

Twilio (TWLO) reported profit of 4 cents per share for the third quarter, surprising analysts who had expected the cloud communications company to report a loss of 3 cents per share. Twilio also gave an upbeat current-quarter sales forecast, as it benefits from the continued shift to remote working and education.

Chegg (CHGG) beat estimates by 7 cents a share, with quarterly earnings of 17 cents per share. The online education company's revenue also topped Wall Street forecasts and Chegg issued a better-than-expected outlook.

BP (BP) reported an unexpected profit for its latest quarter, but warned that the pandemic will continue to impact the pace of the energy giant's recovery.

Las Vegas Sands (LVS) is in talks to sell its Las Vegas casino properties for about $6 billion, according to multiple reports. The company issued a statement to CNBC saying it had held early discussions with unnamed entities, but did not provide any more specifics about which properties were being discussed.

Charles Schwab (SCHW) will lay off about 1,000 workers, or 3% of its workforce, with the announcement coming a few weeks after Schwab completed the acquisition of rival brokerage firm TD Ameritrade.

JM Smucker (SJM) is selling its Crisco shortening brand to B&G Foods (BGS) for $550 million in cash. B&G is the company behind food brands like Green Giant and Cream of Wheat.

Tiffany (TIF) said its deal to be acquired by French luxury goods maker LVMH has received European Commission clearance, completing all the regulatory approvals required for the deal. LVMH is currently suing to stop the deal, saying Tiffany mismanaged its business during the pandemic and that its value has substantially dropped.

Wells Fargo (WFC) is exploring the sale of its corporate trust unit for more than $1 billion, according to a Bloomberg report. The bank is also said to be mulling whether to put its $10 billion student loan portfolio up for sale.

WATERCOOLER

The moon's shadowed, frigid nooks and crannies may hold frozen water in more places and in larger quantities than previously suspected, and for the first time the presence of water on the moon's sunlit surface has been confirmed. That's good news for astronauts at future lunar bases who could tap into these resources. (AP)