The daily business briefing: December 16, 2020

1. Stock futures rise after talks on spending, coronavirus relief

U.S. stock index futures made modest gains early Wednesday following reports of progress in Congress toward a deal on a new coronavirus stimulus package. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were up by about 0.3 percent several hours before the opening bell. All three of the main U.S. indexes rose by more than 1 percent on Tuesday. The gains came as hopes for a stimulus deal rose after House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Mitch McConnell (R-Ky.) met to discuss deals on a spending bill to avert a government shutdown, and the COVID-19 stimulus package. McConnell said Democrats and Republicans had made "significant progress" toward resolving their differences.

CNBC

2. Facebook to lift political ad ban for Georgia runoffs

Facebook said Tuesday that it would allow political ads for the Georgia runoff elections. The social-media giant said the ads would be permitted starting Wednesday, although the company will continue to reject other ads about elections, politics, and social issues in an ongoing effort to reduce misinformation in Facebook posts. The decision followed a similar one by Alphabet's Google. Georgia will hold two Senate runoffs on Jan. 5. The races will decide which party controls the Senate when President-elect Joe Biden takes office on Jan. 20. Democrats Jon Ossoff and the Rev. Raphael Warnock are challenging Republican incumbents David Perdue and Kelly Loeffler. Republicans need to win one of the seats to hold onto a narrow majority.

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The Wall Street Journal

3. Surging e-commerce packages overwhelm Postal Service

An unprecedented flood of e-commerce packages threatens to overwhelm the U.S. Postal Service ahead of Christmas, as Americans shift more of their shopping online due to the coronavirus pandemic, The Washington Post reported Tuesday, citing postal employees and industry tracking firms. Private carriers, including FedEx and UPS, have cut off pickups for some retailers, redirecting a huge amount of delivery traffic to the Postal Service, causing delays. "We're really gridlocked all over the place," said a Postal Service transportation manager in Ohio. "UPS and FedEx have shut us off. Nobody can keep up right now, but we don't have the luxury of turning people down." The Postal Service warned employees this week would be the peak.

The Washington Post

4. FDA approves emergency use of 1st at-home COVID-19 test

The Food and Drug Administration on Tuesday issued an emergency use authorization for the first over-the-counter, fully at-home COVID-19 test. The Ellume COVID-19 Home Test will likely be sold at pharmacies, and it won't require a prescription. FDA Commissioner Stephen Hahn said patients can buy the rapid antigen kit, take it home, conduct their own nasal swab, and get their results "in as little as 20 minutes." Ellume says its intention is for the test to cost $30 or less and while production has just started, the company expects to send out initial shipments the first week of January. There is hope that at-home testing will not only expand Americans' access to coronavirus testing, but also reduce the burden on laboratories and test supplies, Hahn said.

FDA CNBC

5. Fashion mogul Peter Nygard charged with sex trafficking

Canadian fashion and retail mogul Peter Nygard has been charged with sex trafficking involving dozens of victims, according to an indictment unsealed Tuesday in a Manhattan federal court. Nygard, 79, was arrested Monday in Canada, prosecutors said. Nygard declined to comment on his arrest, but he has denied the allegations. Nygard faces nine criminal charges, which also include racketeering, involving alleged crimes in the United States, Canada, and the Bahamas. Prosecutors accused him of using his company's influence, employees, and money to provide adult and minor-aged female victims. Nygard stepped down as chairman of Nygard International in February after authorities raided the company's Manhattan office to investigate the sex-trafficking allegations. The apparel company filed for bankruptcy protection in March.

The Wall Street Journal