Here are five things you must know for Wednesday, Oct. 7:
1. -- Stock Futures Rebound After Trump Says Will Consider Alternative Stimulus
Stock futures were rebounding Wednesday after Donald Trump said he would halt stimulus talks until after the presidential election in November but consider alternative measures such as a new round of stimulus checks and the Paycheck Protection Program.
Contracts linked to the Dow Jones Industrial Average rose 223 points, S&P 500 futures gained 27 points and Nasdaq futures were up 100 points.
Stocks ended sharply lower Tuesday after Trump told his team to halt negotiations with Democrats on a fiscal stimulus package.
“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” Trump said in a tweet.
Trump’s announcement over Twitter followed the urging by Federal Reserve Chairman Jerome Powell for Congress to provide more fiscal support since a U.S. recovery would be weak without additional aid from the government.
Later Tuesday, the president tweeted that he would be willing to pass relief measures such as a new round of $1,200 stimulus checks.
“If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?” Trump tweeted.
He also said Congress should approve $25 billion of aid for airlines and $135 billion for the Paycheck Protection Program to help small businesses.
House Speaker Nancy Pelosi, the chief negotiator for the Democrats, said in a statement that Trump “showed his true colors: putting himself first at the expense of the country, with the full complicity of the GOP Members of Congress.”
She added that “walking away from coronavirus talks demonstrates that President Trump is unwilling to crush the virus.”
2. -- Wednesday's Calendar: Fed Meeting Minutes
The economic calendar in the U.S. Wednesday includes minutes of the Federal Reserve's Sept. 15-16 meeting at 2 p.m. ET. At last month's meeting, the central bank signaled it would keep interest rates low through at least 2023, and said it would hold off on hiking rates until inflation reaches 2% and rises consistently.
The calendar also includes Oil Inventories for the week ended Oct. 2 at 10:30 a.m.
3. -- Tech Giants' Dominance Has Come With a Price, House Report Finds
Shares of Amazon.com (AMZN) - Get Amazon.com, Inc. Report, Facebook (FB) - Get Facebook, Inc. Class A Report, Apple (AAPL) - Get Apple Inc. (AAPL) Report and Alphabet (GOOGL) - Get Alphabet Inc. Class A Report, the parent company of Google, edged higher in premarket trading Wednesday, a day after a House panel proposed to limit the power and influence of the tech giants.
The recommendations from the House antitrust subcommittee could lead to the breakup of tech companies if approved by Congress.
The 449-page report found the tech giants abused their power to stifle competition, leading to fewer choices for consumers and higher costs.
“To put it simply, companies that once were scrappy, underdog startups that challenged the status quo have become the kinds of monopolies we last saw in the era of oil barons and railroad tycoons,” Rep. David Cicilline, D-R.I., chairman of the House Judiciary Antitrust, Commercial and Administrative Law Subcommittee, said in a statement accompanying the report. “Although these firms have delivered clear benefits to society, the dominance of Amazon, Apple, Facebook, and Google has come at a price.”
Amazon rose 0.49% in premarket trading to $3,115.
4. -- General Electric Receives 'Wells Notice' From SEC
The Wells notice was received Sept. 30, General Electric said in a regulatory filing, and indicated the SEC may pursue a civil enforcement action against the company.
General Electric said in a statement that it has cooperated with the SEC and strongly disagrees with the staff's recommendation that the commission bring action against the company.
The Securities and Exchange Commission and the Justice Department have been investigating GE's accounting for about two years after the industrial conglomerate disclosed large write-downs tied to the insurance business and its power business, according to The Wall Street Journal. GE has been trying to wind down the insurance business for two years.
“Most investors seem to believe that the government ultimately is likely to slap GE with a nominal fine. However, the matter could also result in more significant consequences,” said John Inch, an analyst at Gordon Haskett, in a note to clients.
GE shares were rising 0.65% to $6.21 in premarket trading. They fell 3.74% on Tuesday after GE said it received the Wells notice.
5. -- Coronavirus - The Latest
The number of confirmed global deaths from Covid-19, the disease caused by the coronavirus, rose to almost 1.05 million, according to Johns Hopkins University. Confirmed cases of the virus across the world have risen to 35,814,815.
The U.S. death toll is 210,909, the most in the world and more than 20% of the global total. The number of infected people in the U.S. was 7,501,816.