Stimulus Talks May Reach A Fork In The Road Today As The Trump Administration Mulls New Democratic Stimulus Proposal

Plus, global coronavirus cases surpassed 1 million, JPMorgan will pay $920 million to resolve probes related to ‘spoofing’ by its traders, and Nikola shares are down again this morning on assault allegations against former Chairman Milton. 

Stocks were lower to start Tuesday with the Dow dropping 156 points, or 0.6%. The S&P 500 fell 0.4%, while the Nasdaq traded 0.4% lower. 

Stimulus talks between the Trump administration and congressional Democrats will come to a head today as both sides either quickly seal a deal or the House moves to pass its $2.2 trillion proposal and leave town for pre-election campaigning. Democrats released their $2.2 trillion legislation Monday night, which was initially met with silence from the White House, though House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke last night and agreed to speak again this morning in an effort to potentially move closer to a compromise. While the new bill is more than $1 trillion less than the stimulus bill the House passed in May that was rejected by both Senate Republicans and the White House, it is still far higher than what Republicans have said they will accept with the Trump administration offering to only inject about $1.3 trillion more into efforts to boost the economy amid the coronavirus pandemic.

Speaking of… The world officially recorded 1 million deaths from COVID-19, marking one of the most sobering milestones of the pandemic. However, experts say the real tally could be much higher. Actual fatalities from the coronavirus pandemic may be closer to 1.8 million, and could rise to as high as 3 million by the end of the year, according to Alan Lopez, a laureate professor and director of the University of Melbourne’s global burden of disease group, as the coronavirus’s rapid spread and ability to transmit to some people who show no signs of symptoms enabled it to outrun measures to accurately quantify cases through widespread testing. “One million deaths has meaning by itself, but the question is whether it’s true,” Lopez said. “It’s fair to say that the 1 million deaths, as shocking as it sounds, is probably an underestimate – a significant underestimate.” In the U.S., experts are concerned that the virus may spread more rapidly as we enter the winter months, reigniting concerns that the healthcare system could be overwhelmed by new cases as the weather cools and activities move indoors. “We haven’t had exposure to COVID throughout an entire winter, when more people are indoors and close together for prolonged periods,” said William Schaffner, an infectious disease professor at Vanderbilt University in Nashville, Tennessee. “We are certainly concerned that COVID could spread even more readily in the winter than it has so far.”

JPMorgan shares are down nearly 2% this morning after news broke that the bank is set to pay $920 million to resolve probes from three U.S. government agencies over its role in the alleged manipulation of metal and Treasurys markets, Commodity Futures Trading Commission commissioner Dan Berkovitz said in a statement. “For eight years, a group of traders at JPMorgan systematically ‘spoofed’ precious metals and Treasury futures markets by entering hundreds of thousands of orders with the intent to cancel them before execution,” Berkovitz said. “The Commission’s Order finds that JPMorgan manipulated these markets and failed to diligently supervise its traders.” 

Another bump in the road for Nikola. Shares of the electric truck maker are down 7% this morning after CNBC reported that founder and former Chairman Trevor Milton, who resigned his post last week, has been accused of sexual abuse by two women, according to complaints filed with Utah authorities. The alleged abuses stretch back more than 15 years and follow what has been a tumultuous two weeks for Nikola after Hindenburg Research released a damning report detailing fraud allegations. “Mr. Milton strongly denies these false allegations,” said Brandon Messina, Milton’s spokesman, said in a statement. “At no point in his life has Mr. Milton ever engaged in any inappropriate physical contact with anyone.” The first alleged assault was reported by Milton’s cousin and occurred when the two were 15 and 17, respectively, while the second alleged assault took place in 2004 when Milton was 22 and the victim was a 15-year-old girl who he hired as an office assistant, according to Craig Johnson, a former prosecutor who is representing both women. In the case of the second accuser, Johnson said the alleged offense of object rape is a first-degree felony that carries with it a penalty of five years to life in prison. 

And just in time for the holiday season, Bed Bath & Beyond has teamed up with with Target-owned Shipt and Instacart for same-day delivery as more people shop online amid the coronavirus pandemic. Bed Bath & Beyond and buybuy Baby stores across 48 states will offer the service for eligible zip codes. “The important thing is… to make sure we get this in place before the holidays,” said Bed Bath & Beyond Chief Digital Officer Rafeh Masood. “It’s another way for customers to shop with us when safety is top of mind.” The same-day delivery rollout follows the company’s debut of its buy online, pick-up in store, and contactless curbside pickup options earlier this year. For the quarter ended May 30, the company’s online sales surged 82% as shoppers flocked to Bed Bath & Beyond’s and buybuy Baby’s websites for everything from bread makers to diapers. “Digital is going to play a very important role this holiday season,” Masood added.

Stocks We’re Watching

Clarus Corp (NASDAQ: CLAR): Clarus Corp shares jumped 7% yesterday after the company announced that its Sierra Bullets subsidiary has been selected to acquire certain assets from Barnes Bullets Carter 11 bankruptcy auction process conducted by Remington Outdoor Company. “Barnes embodies the ‘innovate and accelerate’ playbook we seek with ‘super-fan’ brands,” said John Walbrecht, Clarus’ president, in a statement. “Barnes is a leader in lead-free, all copper bullets, with a rich history of product innovation and strong brand awareness amongst the core enthusiast, yet it has untapped go-to-market potential. We believe these ingredients give us a heightened advantage to develop world-class products, increase brand awareness, expand product categories and improve distribution while staying true to the core user.”

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