Stock futures are lower after a meeting between President Donald Trump and congressional leaders failed to produce an agreement to avert a government shutdown; Nike (NKE) earnings are due to be released as the apparel maker continues its turnaround efforts; YouTube agreed to settle a lawsuit from President Trump for $24.5 million; and ExxonMobil (XOM) announced it would lay off 2,000 workers as part of an organizational restructuring. Here's what you need to know today.
1. Stock Futures Tick Lower But Major Indexes On Track for Monthly Gains
Stock futures ticked lower as a government shutdown appeared imminent after lawmakers failed to reach a spending agreement in a meeting yesterday. Futures tied to the Dow Jones Industrial Average, the benchmark S&P 500 and the tech-focussed Nasdaq were each down 0.2% recently. The major indexes, which gained ground Monday for the second straight session, are on pace to finish higher for the month, which would mark the fifth straight month of gains for the benchmark S&P 500. Gold futures were slightly lower at $3,840 an ounce, after hitting a fresh record high this morning. The yield on the 10-year Treasury, which influences rates on a range of consumer loans, was holding steady at 4.14%. Bitcoin (BTCUSD) was at $113,000, down from an overnight high of $114,800. Crude oil futures were down about 1% at $62.90 per barrel, adding to yesterday's steep decline.
2. Government Shutdown Looms as Lawmakers Remain at Impasse
Democrat and Republican party leaders remain at odds after a meeting yesterday failed to produce a deal to avert a government shutdown, which could come if budget legislation isn’t passed by the Senate today. Democrats have demanded the restoration of healthcare subsidies in the spending bill, which would fund the government through mid-November. The budget bill needs seven Democratic votes in the Senate to pass procedural hurdles. It would be the first government shutdown since the federal government closed for five weeks in 2018 and 2019. The shutdown would go into effect at 12:01 a.m. ET Wednesday.
3. Nike’s Earning Report Set to Show How Turnaround Efforts Are Going
Nike (NKE) is scheduled to release its quarterly results after the closing bell, with investors eager to see more evidence that the company's turnaround efforts are working. Nike is expected to report adjusted earnings per share of $0.26 for its fiscal first quarter, down more than 60% from the prior year, while its revenue of $11 billion would reflect a 5% annual decline, according to analyst projections tracked by Visible Alpha. The report comes as Nike shares have rebounded from their lows for the year, with some analysts optimistic that the stock, a Dow component, could get back to triple digits. Nike shares were little changed in premarket trading at around $70.
4. YouTube Agrees to $24.5 Million Settlement Over Trump Lawsuit
YouTube agreed to pay President Donald Trump $24.5 million to settle a lawsuit over the suspension of his account after the Jan. 6, 2021 U.S. Capital riots. The deal comes after Twitter, now known as X, and Facebook-parent Meta (META) settled similar lawsuits filed by Trump. As part of the YouTube settlement, $22 million will be paid on Trump's behalf to the Trust for the National Mall, a nonprofit that the filing says is dedicated to the construction of a $200 million ballroom being built at the White House. Shares of YouTube-parent Alphabet (GOOGL) are flat in premarket trading.
5. ExxonMobil Announces Layoff Amid Organizational Restructuring
ExxonMobil (XOM) announced it would lay off 2,000 workers, representing about 4% of its workforce, as the company consolidates several smaller offices into regional hubs. The move comes as other oil companies have cut staff in response to falling oil prices, which have moved lower as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have agreed to boost supply. ExxonMobil CEO Darren Woods said in a memo to employees that the job cuts were part of an organizational restructuring at the company. Shares of Exxon were down less than 1% in premarket trading.
