Stocks kicked off the week on a tepid note, with main indexes each up less than 1% as Wall Street eyes President Donald Trump’s Covid-19 recovery and the ongoing potential for successful stimulus negotiations.
The Dow Jones Industrial Average is up 230 points, or .9%, while the S&P 500 and the tech-heavy Nasdaq also edged up about .9% each.
Fantasy sports betting firm DraftKings is down 3% after announcing a public offering of 32 million Class A shares, which opened Monday trading priced at $61.28.
Bristol Myers Squibb said Monday it is acquiring Brisbane, Calif.-based MyoKardia, a clinical stage biopharmaceutical company, for $225 per share–a more than 60% premium to its Friday closing price–in a transaction valued at roughly $13.1 billion.
BridgeBio Pharma Inc. is down 7% after announcing Monday morning that it’ll acquire the roughly 36.3% of shares in biotech Eidos Therapeutics that it doesn’t already own for either 1.85 shares of BridgeBio common stock or $73.26 per Eidos share.
International markets were also fairly tepid on Monday; as of U.S. market open, the CAC 40 was up less than 1%, while Japan’s Nikkei 225 was up 1% and the U.K.’s FTSE 100 was up .6%.
President Trump fueled stimulus talks this weekend while hospitalized at Walter Reed Medical Center after testing positive for Covid-19 on Friday, urging Congress to pass another aid bill in a tweet that said: “WORK TOGETHER AND GET IT DONE.” House Speaker Nancy Pelosi and the Trump administration, represented by Treasury Secretary Steven Mnuchin and White House chief of staff Mark Meadows, resumed stimulus negotiations last week after months of deadlock but have so far failed to reach an agreement, with just 29 days left until the November election.
In a flurry of morning tweets, President Trump–who remains in the hospital Monday morning–touted stock market highs and tax cuts, among other things, saying in one instance, “BIGGEST TAX CUT EVER, AND ANOTHER ONE COMING. VOTE!” In another tweet, the President simply said, “STOCK MARKET HIGHS. VOTE!” There was no mention of a stimulus deal in the nearly two dozen tweets.
“If Congress and the Trump administration can come to terms on another substantial fiscal rescue package in the next few days, the recovery should continue well into next year, when expectations are that at least one effective vaccine will be widely available,” said Moody’s Analytics Chief Economist Mark Zandi in a Monday note. “If confirmed COVID-19 infections remain near 40,000 per day until then—close to where they’ve been in recent weeks—then the $1.5 trillion package we’ve been counting in would be sufficient to maintain the recovery.”