Dow jumps more than 450 points after President Trump said he was discharged from the hospital

Top line

Shares surged Monday afternoon after President Donald Trump announced he would be discharged from Walter Reed Medical Center by the end of the day, with all major indices approaching 2%, as Wall Street watches Covid recover. 19 of President Trump and the potential for success under stimulus negotiations.

Main aspects

The Dow Jones Industrial Average was up 460 points, or 1.7%, while the S&P 500 added 1.8% and the high-tech Nasdaq was up 2.3%.

Fantasy betting company DraftKings fell 6% after announcing a public offering of 32 million Class A shares, which closed trading on Monday at a price of $ 60.55.

Bristol Myers Squibb said Monday that it will acquire MyoKardia, a clinical-stage biopharmaceutical company based in Brisbane, California, for $ 225 per share – a premium of more than 60% over Friday’s closing price – in a transaction by the worth approximately $ 13.1 billion.

BridgeBio Pharma Inc. announced Monday morning that it will acquire approximately 36.3% of the biotech Eidos Therapeutics shares it does not already own for 1.85 shares of BridgeBio or $ 73.26 per Eidos share; The BridgeBio stock ended the day practically flat.

International markets were quite warm on Monday; the CAC 40 was up less than 1%, while the Japanese Nikkei 225 was up 1% and the UK’s FTSE 100 was up 0.6%.

Key background

President Trump fueled stimulus talks this weekend as he was 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 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 has so far failed to reach an agreement, just 29 days before the November elections.

Tangent

In a flurry of morning tweets, President Trump touted stock market highs and tax cuts, among other things, saying in one case, “THE BIGGEST TAX CUT EVER AND ANOTHER COMING. VOTE!” In another tweet, the president simply said, “HIGH STOCK MARKET. VOTE!” There was no mention of a stimulus deal in the nearly two dozen tweets.

Crucial quote

“If Congress and the Trump administration can come to terms on another substantial fiscal bailout package in the coming days, the recovery is expected to continue well into the next year as expectations are that at least one effective vaccine will be widely available,” he said. Moody’s Analytics Chief economist Mark Zandi in a statement on Monday. “If confirmed COVID-19 infections remain close to 40,000 a day until then, close to where they have been in the past few weeks, then the $ 1.5 trillion package we counted would be enough to keep the recovery going.”

Further reading

Pelosi still doesn’t say a second stimulus, despite Trump’s push for a deal (Forbes)

Trump unleashes torrent of capitalized tweets from hospital, urging ‘better, cheaper healthcare’ (Forbes)

Trump’s positive Covid test shakes markets – here’s what he thinks will happen on Wall Street (Forbes)

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