Topline

Broad-market indexes are up Tuesday after U.S. President Donald Trump returned to the White House following his three-day hospitalization at Walter Reed Medical Center, but tech stocks are down as the House’s antitrust report on big tech firms nears release.

Key Facts

The tech-heavy Nasdaq, down .1%, is the only major index down this morning following a Monday evening report from Politico that revealed a draft of the U.S. House of Representatives’ antitrust report on big tech firms, slated for release later this week, contains provisions that would make it easier to break up Silicon Valley giants Facebook, Amazon, Apple and Google-parent Alphabet.

Each of the big four tech firms are down close to 1% this morning, with all of them now down about 10% over the past month.

As of market open, the Dow Jones Industrial Average had edged up .2%, while the S&P 500 was virtually flat. 

The U.S. trade deficit rose to $67.1 billion in August, its highest level in 14 years, according to data from the U.S. Census Bureau released Tuesday morning. 

Meanwhile, one day after Cineworld’s closure announcement crashed movie theater stocks, shares of America’s largest theater chain, AMC Entertainment, are on the mend, adding 3% Tuesday after the firm said it has no plans to further suspend movie theater operations. 

More than 80% of AMC’s close to 700 U.S. theaters are open, and “will remain open,” the firm said Tuesday; by the first week of September, about 70% of its U.S. locations had reopened. 

Irvine, Calif.-based software company Alteryx surged 23% Tuesday morning after the firm announced a new CEO and an increased sales outlook Monday after the closing bell.

Key Background

Election and vaccine uncertainty have heightened market uncertainty in recent weeks. According to LPL Financial Chief Investment Officer Burt White, the worst case election results for markets is a vote recount that escalates to a legal or legislative battle, which, though unlikely, has the potential to crash markets by more than 10%. If election results are contested, the best-case scenario for markets is the least disruptive one: A simple one- or two-day backlog in counting votes, most likely triggered by the expected influx of absentee and mail-in ballots. This could have a largely negligible effect on stocks. President Trump’s positive Covid-19 test on Friday shifted the market’s focus, but experts say a fiscal stimulus before year’s end is still necessary for a sustained economic recovery.

What To Watch For

Stimulus negotiations remain underway, but progress is slow. House Speaker Nancy Pelosi (D-Calif.) and Treasury Secretary Steven Mnuchin resumed talks late last week after a months-long standstill, and the two are slated to speak again on Tuesday. Congress has just 28 days to pass an aid bill if it plans to do so before the November election.

Further Reading

Pelosi Says Stimulus Talks Are Moving ‘Very Slowly’ (Forbes)

Here Are 3 Ways A Contested Election Could Play Out–And What Each Means For The Market (Forbes)

AMC Shares Plummet 10% After Rival Cineworld Says It’s Closing Nearly 700 Movie Theaters (Forbes)

45,000 Jobs At Risk As Regal Owner Cineworld Closes All U.S. And U.K. Cinemas (Forbes)

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