Here are five things you must know for Monday, Oct. 28:
1. -- Stock Futures Rise on Positive U.S.-China Trade Developments
U.S. stock futures rose Monday, boosted by signs of further progress in U.S.-China trade talks and the expectation of rate cuts from the Federal Reserve later this week amid another wave of corporate earnings from heavyweights such as Apple (AAPL) - Get Apple Inc. (AAPL) Report , Alphabet and (GOOGL) - Get Alphabet Inc. Class A Report and Facebook (FB) - Get Facebook, Inc. Class A Report .
The U.S. Trade Representative's statement late Friday, which said Washington and Beijing were "close to finalizing some sections of the agreement" and that "discussions will go on continuously at the deputy level, and the principals will have another call in the near future" suggested the so-called phase one aspect of U.S.-China trade talks could be completed ahead of next month's APEC summit in Chile. U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, are expected to meet at the summit.
If the two leaders are able to advance talks beyond agricultural purchases, which have appeared to dominate the first phase of agreements, tariffs aimed at $156 billion worth of China-made goods, which are expected to kick in on Dec. 15, could be paused or reversed, according to analysts.
Meanwhile, the Federal Reserve will meet this week with a decision on interest rates Wednesday afternoon. The central bank is expected to cut its key lending rate by 25 basis points - the third such reduction this year - and pledge it will trim rates further if the economy continues to cool into the final months of the year.
Contracts tied to the Dow Jones Industrial Average rose 93 points, futures for the S&P 500 gained 8.45 points, and Nasdaq futures were up 29 points.
The S&P 500 closed within touching distance of its all-time high on Friday.
The economic calendar in the U.S. Monday includes International Trade in Goods for September at 8:30 a.m. ET.
2. -- Alphabet, AT&T and Walgreens Report Earnings
AT&T (T) - Get AT&T Inc. Report reported third-quarter adjusted earnings of 94 cents a share, beating analysts' estimates by 1 cent. Revenue was $44.59 billion vs. forecasts of $45.11 billion. The stock rose 1.46% to $37.45 in premarket trading.
Separately, AT&T said that while Randall Stephenson would stay on as CEO through at least 2020, the board will add two new members and the company will sell non-core assets worth around $10 billion as it reacts to pressure for changes outlined last month by Elliott Management.
Earnings reports are expected Monday from Alphabet (GOOGL) - Get Alphabet Inc. Class A Report , Walgreens Boots Alliance (WBA) - Get Walgreens Boots Alliance Inc Report , Anadarko Petroleum (APC) - Get Anadarko Petroleum Corporation Report , Beyond Meat (BYND) - Get Beyond Meat, Inc. Report , Cooper Tire & Rubber (CTB) - Get Cooper Tire & Rubber Company Report , Xerox (XRX) - Get Xerox Holdings Corporation (XRX) Report , McDermott International (MDR) - Get McDermott International, Inc. Report , T-Mobile US (TMUS) - Get T-Mobile US, Inc. Report , Texas Roadhouse (TXRH) - Get Texas Roadhouse, Inc. Report , Tapestry (TPR) - Get Tapestry, Inc. Report and NXP Semiconductors (NXPI) - Get NXP Semiconductors NV Report .
3. -- LVMH Confirms It Approached Tiffany With Buyout Offer
"In light of recent market rumors, LVMH Group confirms it has held preliminary discussions regarding a possible transaction with Tiffany," the company said in a statement. "There can be no assurance that these discussions will result in any agreement."
Reports over the weekend said LVMH, the world's biggest luxury goods company, submitted a preliminary, non-binding offer to Tiffany earlier this month.
The exact price that LVMH was offering to buy Tiffany, which has a market capitalization of nearly $12 billion, could not be learned. However, The Wall Street Journal, citing people familiar with the matter, said LVMH sent Tiffany officials a letter in the last couple of weeks outlining an all-cash takeover bid of roughly $120 a share, which would value Tiffany at $14.5 billion.
Tiffany is expected to work quickly on a response, some of the people told the Journal. Even though the bid represents a premium of 30% or more to where Tiffany traded when the offer was made, LVMH is expected to have to pay more if it wants to clinch the deal, according to one of the people.
Tiffany shares jumped 29.88% in premarket trading Monday to $128.
4. -- Microsoft Is Awarded $10 Billion Pentagon Contract
The Redmond, Wash.-based software giant beat out rival Amazon.com (AMZN) - Get Amazon.com, Inc. Report in the final round for the Joint Enterprise Defense Infrastructure, or JEDI, deal. IBM (IBM) - Get International Business Machines (IBM) Report and Oracle (ORCL) - Get Oracle Corporation Report were eliminated in earlier rounds of consideration.
Amazon dominates the cloud computing space with about 33% of the business, while Microsoft trails with about 16%.
Donald Trump called for a review of the contract process last summer as incoming Defense Secretary Mark Esper took office. That move came as many pundits were expecting Amazon to win the deal.
Trump has famously feuded with Amazon CEO Jeff Bezos, who owns the Washington Post. At the time of the review, Trump said he'd received multiple complaints from other companies about the bidding process.
Microsoft shares rose 3% in premarket trading to $144.91.
5. -- UAW Ends General Motors Strike
Members of the United Auto Workers union employed at General Motors (GM) - Get General Motors Company (GM) Report ratified a collective bargaining agreement with the nation's biggest automaker Friday, ending a 40-day strike.
Shares of GM rose 1% in after-hours trading Friday to $37.12. The stock has fallen about 5% since the strike began on Sept. 16.
Estimates have put GM's losses during the strike at as much as $2 billion.
The agreement includes an $11,000 signing bonus, two 3% annual raises, two 4% lump sum payments and no change in healthcare costs, the union said.
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