Here are five things you must know for Monday, Oct. 1:
1. -- Stocks Jump as U.S. Reaches Trade Deal With Canada
U.S. stock futures rose sharply on Monday, Oct. 1, after White House trade officials reached an agreement with Canada to revamp the North American Free Trade Agreement in a deal that removes tariff risks from around $1.2 trillion worth of a goods each year.
The United States-Mexico-Canada Agreement (USMCA), reached just hours before a self-imposed deadline of midnight ET, includes a major concession from Canada on access to its dairy market, but also a climb down from U.S. Trade Representative Robert Lighthizer, who agreed to maintain a dispute settlement panel with America's biggest trading partner.
Other details surrounding the deal, and its impact on issues such as automotive supply chain origins, steel and aluminum tariffs and the contentious issue of U.S.-Canada lumber trading, still haven't been fully revealed. But the framework agreement does remove a significant tariff-related risk for the global financial markets heading into the final months of the year.
The economic calendar in the U.S. on Monday includes the PMI Manufacturing Index for September at 9:45 a.m. ET, the ISM Manufacturing Index for September at 10 a.m., and Construction Spending for August at 10 a.m.
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2. -- Tesla Soars After Elon Musk Settles With SEC
Tesla Inc. (TSLA) - Get Report shares rose 15.4% in premarket trading on Monday after the electric vehicle company's CEO, Elon Musk, agreed over the weekend to settle with the Securities and Exchange Commission a complaint that he violated federal securities laws with several tweets pertaining to a take-private offer for Tesla.
Musk will remain as CEO of the company but will step down as chairman for at least three years. Musk also agreed to pay a civil penalty of $20 million.
The SEC also fined Tesla $20 million and said the company needed to add two independent directors.
"The total package of remedies and relief announced today are specifically designed to address the misconduct at issue by strengthening Tesla's corporate governance and oversight in order to protect investors," said Stephanie Avakian, co-director of the SEC's Enforcement Division, in a statement on Saturday, Sept. 29.
On Aug. 7, Musk tweeted that he was considering taking Tesla private at $420 a share and that he had secured funding for the transaction.
Musk made the tweets without discussing their content "with anyone else prior to publishing them," the SEC alleged in its complaint. They surprised even Tesla's head of investor relations, who sent a text message to Musk's chief of staff asking if Musk's statement was "legit."
- Tesla's Musk to Step Down as Chairman as Part of SEC Settlement
- SEC Chair Suggests Musk Too Critical to Remove From Tesla
- SEC Looks the Other Way and Elon Musk Laughs All the Way to the Bank
3. -- California Bill Requires Women on Company Boards
California Gov. Jerry Brown on Sunday, Sept. 30, signed bill SB 826 into law, requiring public companies based in the state to put women on their boards of directors, even though there is the potential for a legal challenge.
Under the new law, California-based public companies will be required to have one woman on their board by 2019. The required minimum then increases to two women for five-person boards and three women for boards of six or more directors by 2021.
About 29% of the 664 public companies in California do not have a woman on their boards, according to BoardEx, a relationship mapping service of TheStreet. About 36% of companies have one woman on their board, and 23% of companies have two women, according to BoardEx data.
Some of the most notable California companies with no female board representation include Skechers USA Inc. (SKX) - Get Report , Stamps.com Inc. (STMP) - Get Report and Nektar Therapeutics Inc. (NKTR) - Get Report , according to BoardEx.
- California Governor Signs Bill to Require Women on Company Boards
- California Says Goodbye to All-Male Boards
"Given all the special privileges that corporations have enjoyed for so long, it's high time corporate boarding include the people who constitute more than half the 'persons' in America," said Brown in a statement.
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4. -- Facebook Faces Potential $1.63 Billion Fine in Europe Over Data Breach
Facebook Inc. (FB) - Get Report could face a fine of as much as $1.63 billion from European regulators for a data breach announced Friday, Sept. 28, in which hackers compromised the accounts of more than 50 million users, The Wall Street Journal reported.
Ireland's Data Protection Commission, which is Facebook's lead privacy regulator in Europe, said Saturday that it has demanded more information from the social media giant about the breach, including which EU residents might be affected.
In an emailed statement, the regulator said it is "concerned at the fact that this breach was discovered on Tuesday and affects many millions of user accounts but Facebook is unable to clarify the nature of the breach and the risk for users at this point."
Facebook shares fell 0.3% in premarket trading.
5. -- Oracle Loses Top Cloud Executive
Oracle Corp. (ORCL) - Get Report said Thomas Kurian, the company's president of product development who was leading its cloud-computing business, has resigned, three weeks after announcing he was taking an extended leave of absence.
"Mr. Kurian's duties and responsibilities have been reassigned to other senior executives in Oracle's development organization," Oracle said in a filing with the SEC. Oracle said Kurian was leaving "to pursue other opportunities."
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