The stock market, which is coming off a very good week -- the Nasdaq was on a six-day winning streak entering Tuesday -- finished the day firmly in the red as an afternoon selloff accelerated.
One might think a newly unveiled $3 trillion stimulus bill intended to blunt the effects of an economy entering recession would be bullish. Instead, after House Democrats released the bill, stocks sank. The Dow Jones Industrial Average ended the day down 457 points, or 1.9%, to end at 23,764.
$3 trillion proposal sounds nice, but can it pass? House Democrats rolled out a major new spending bill that included relief for state and local governments, financial assistance for rent and mortgage payments, more payments to individuals as well as hazard pay for the nation's essential workers.
Although the House is expected to pass the legislation when it votes on Friday, it's unlikely the GOP-controlled Senate will ratify the large sum, telegraphing the heightened likelihood of another intense round of negotiations over the weekend.
Uber talks GrubHub acquisition. Ride-hailing giant Uber Technologies (ticker: UBER) is reportedly in talks with GrubHub ( GRUB) to acquire the food delivery service. Uber Eats competes with GrubHub, and industry dynamics would certainly be more favorable with fewer competitors.
It's clearly an ideal time to have a foot in the food delivery business, but reports later Tuesday afternoon that Uber had rejected an offer to acquire GrubHub in an all-stock deal valuing GRUB at $68 per share make the deal uncertain. Before that news broke, GRUB was up 29% on the day, closing just above $60 a share. Trading at $68 per share would be a roughly 45% premium to Monday's closing price of $46.79.
Fauci testifies. Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, testified before the U.S. Senate Committee on Health, Education, Labor, and Pensions on Tuesday, taking a cautious tone and emphasizing the need to improve testing and strictly follow guidelines for reopening the country.
Fauci, who appeared remotely from home quarantine following news of several positive cases at the White House, was one of several high-profile health officials to testify. The heads of the Centers for Disease Control and Prevention and Food and Drug Administration, as well as a Department of Health and Human Services representative, also appeared.