Here are five things you must know for Tuesday, Oct. 20:
1. -- Stock Futures Rebound Ahead of Deadline for Relief Package
Stock futures were rising Tuesday following Monday's steep market slide as House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin were said to have narrowed some of their differences on a coronavirus relief package.
Contracts linked to the Dow Jones Industrial Average rose 181 points, S&P 500 futures were up 25 points and Nasdaq futures gained 91 points.
“The Speaker continues to hope that, by the end of the day Tuesday, we will have clarity on whether we will be able to pass a bill before the election,” said Pelosi spokesman Drew Hammill via Twitter. “The two principals will speak again (Tuesday) and staff work will continue around the clock.”
Pelosi set a Tuesday deadline for settling on terms of a relief package before the Nov. 3 presidential election.
She told House Democrats on Monday that significant areas of disagreement were standing in the way of any stimulus deal, Bloomberg reported, citing four people who participated in the closed conference call.
Stocks fell sharply Monday as optimism faded that lawmakers could reach an agreement on a relief package for millions of struggling Americans before Election Day. The Dow dropped 410 points, or 1.44%, to close at 28,195, the S&P 500 fell 1.63% and the Nasdaq declined 1.65%.
“As hope for a pre-election stimulus balloon deflates, and with stocks struggling to float on their own during a subpar earnings season, exhaustion set in, and the laws of gravity took over,” said Stephen Innes, chief global market strategist at Axi.
2. -- Netflix, Lockheed and Snap Report Earnings
Earnings reports are also expected Tuesday from Netflix (NFLX) - Get Report, Lockheed Martin (LMT) - Get Report, Texas Instruments (TXN) - Get Report, Philip Morris International (PM) - Get Report, Travelers (TRV) - Get Report, Snap (SNAP) - Get Report, Albertsons Cos. (ACI) - Get Report and iRobot (IRBT) - Get Report.
The economic calendar in the U.S. Tuesday includes Housing Starts and Permits for September at 8:30 a.m. ET.
3. -- Intel to Sell NAND Memory Chip Business for $9 Billion
The sale includes Intel’s solid-state drive, NAND flash and wafer businesses, and a production facility in Dalian, China. The deal will make SK Hynix one of the world's largest NAND memory makers.
Intel had been weighing getting out of the business for some time, driven by sagging prices for flash memory, according to The Wall Street Journal, which first reported the possible sale on Monday.
The market for memory chips slumped in 2018 amid an oversupply of the devices, though it began to recover late last year. Analysts expect the market for NAND devices to remain strong in the coming years as data storage surges, the Journal noted.
"This transaction will allow us to further prioritize our investments in differentiated technology where we can play a bigger role in the success of our customers and deliver attractive returns to our stockholders," said Intel CEO Bob Swan in a statement.
Intel shares rose 0.73% to $54.98 in premarket trading Tuesday.
4.-- IBM Slumps as Revenue Declines for a Third Straight Quarter
Shares of International Business Machines (IBM) - Get Report were falling in premarket trading Tuesday after the technology giant reported a decline in third-quarter revenue and failed to issue an outlook.
On an adjusted basis, IBM earned $2.58 per share in the third quarter, in line with Wall Street forecasts.
Revenue fell to $17.56 billion from $18.03 billion a year earlier, but came in slightly above analysts’ estimates of $17.54 billion. It was the third consecutive quarter that IBM reported declining revenue.
The company's cloud business witnessed a 19% jump in revenue to $6 billion in the third quarter.
Chief Financial Officer James Kavanaugh said on a conference call late Monday that IBM would record charges of $2.3 billion in the fourth quarter “to simplify and streamline" its business after announcing last week that it would spin off its infrastructure division and concentrate on hybrid cloud growth.
“Given this uncertainty and consistent with our direction for most of this year, we are not going to provide guidance,” Kavanaugh said.
The stock was down 2.92% to $121.85 in premarket trading.
5. -- Moderna Could Get Government OK for Covid-19 Vaccine in December
Moderna (MRNA) - Get Report CEO Stephane Bancel said the U.S. government could authorize emergency use of the company's experimental Covid-19 vaccine in December if Moderna gets positive interim results in November from a large clinical trial, The Wall Street Journal reported.
Bancel, speaking Monday at a Journal tech conference, said, however, that if sufficient interim results from the trial take longer to get, government approval of the vaccine may not occur until early next year.
Pfizer said last week it could apply for emergency use approval of its developing coronavirus vaccine treatment as early as November if data from ongoing trials show its safe and effective.