On The Money: Stocks cap off Election Day with major gains | NYT: Trump claim on prepaying millions in federal taxes ‘misleading at best’ | Price tag to settle thousands of opioid lawsuits could total $21B

On The Money: Stocks cap off Election Day with major gains | NYT: Trump claim on prepaying millions in federal taxes ‘misleading at best’ | Price tag to settle thousands of opioid lawsuits could total $21B

Happy Election Day and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

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THE BIG DEAL—Stocks cap off Election Day with major gains: Stocks rallied Tuesday as voters cast their ballots, rising for the second straight day in the face of uncertainty.

The Dow Jones Industrial Average closed with a gain of nearly 555 points Tuesday, rising roughly 2.1 percent. The Nasdaq composite rose 1.9 percent, and the S&P 500 rose 1.8 percent.

The market’s strong Election Day comes after stocks closed with solid gains Monday, shaking off Wall Street’s worst week since March. The Dow closed with a gain of 423 points Monday, rising 1.6 percent, while the Nasdaq gained 0.4 percent and the S&P rose 1.2 percent.

I have more here.

LEADING THE DAY

NYT: Trump claim on prepaying millions in federal taxes ‘misleading at best’ The New York Times reported late Monday that President Trump’s claim that he has prepaid millions of dollars in federal income taxes is “misleading at best.”

The president’s defense “serves to distract from the reality — unaddressed in any of his public statements — that he has paid little or no federal income taxes most years, largely because his business losses far outweighed his profits,” Times reporters Susanne Craig and Mike McIntire wrote in a piece aimed at fact-checking Trump’s argument. The article was published hours before Election Day. 

The Hill’s Naomi Jagoda explains here.

The background: 

  • The Times reported in September, based on tax records of the president that it has obtained, that he paid just $750 in federal income taxes in 2016 and 2017, and paid zero in federal income taxes in many of the preceding years.
  • Trump has pushed back on the Times’s reporting, claiming he has prepaid millions in federal income taxes.
  • The Times reported that Trump has made estimated tax payments during the year, including when he requests extensions to file his tax returns. For example, Trump made estimated payments of $1 million for 2016 and $4.2 million for 2017 when he requested extensions.

Trump is the first president in decades to not make any of his federal tax returns public. He has said he hasn’t disclosed his returns because of an audit, but the IRS says that audits don’t preclude people from releasing their own tax information.

Drugmaker says price tag to settle thousands of opioid lawsuits could total $21B: Drug distributor McKesson said Tuesday that it and other pharmaceutical companies could have to pay up to $21 billion to settle thousands of lawsuits related to the opioid crisis. 

In a new quarterly report, McKesson said that it would pay about $8 billion of the $21 billion total settlement over the next 18 years. This marks an increase from the $6.68 billion McKesson was initially set to pay when the settlement framework was first proposed last year. 

In October 2019, McKesson, along with AmerisourceBergen and Cardinal Health, proposed a combined $18 billion settlement to resolve approximately 3,200 lawsuits, with drugmaker Johnson & Johnson paying an additional $4 billion. Due to pushback from local governments and states, Johnson & Johnson agreed last month to pay $5 billion.

The Hill’s Celine Castronuovo has more here.

GOOD TO KNOW

  • Washington Post: “U.S. economy faces severe strains after election with Washington potentially paralyzed”
  • Reuters: “Deutsche Bank AG is looking for ways to end its relationship with President Donald Trump after the U.S. elections, as it tires of the negative publicity stemming from the ties, according to three senior bank officials with direct knowledge of the matter.”
  • The New York Times: “Ant Group challenged China’s state-dominated banking system by bringing easy-to-use payments, borrowing and investing to hundreds of millions of smartphones across the country. On Tuesday, Chinese officialdom reminded the company who was really in charge.”
  • CNBC: “Here’s the final tally of where tech billionaires donated for the 2020 election”