Dow eyes 23,000; Airbus-Bombardier deal; Brexit pain

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1. Airbus deal: Shares in Airbus (EADSF) opened more than 3% higher on Monday, hours after the European aerospace company announced it was taking control of Bombardier's embattled C Series airliner program.

The C Series had come under attack this year from rival Boeing (BA), which alleged Bombardier (BDRAF) was selling the jet at "absurdly low prices."

The U.S. Department of Commerce has preliminarily levied a 300% tariff on the plane's imports, setting up a diplomatic row that has drawn in the Canadian and U.K. governments. By assembling the C Series at its plant in Alabama, Airbus could circumvent those tariffs.

2. Dow 23,000 watch: U.S. stock futures were flat early Tuesday, after markets closed at yet another record high on Monday.

The Dow Jones industrial average is now just 53 points away from reaching a new milestone of 23,000 points. The index was up 0.4% Monday, having climbed roughly 25% since President Trump's election last November.

The S&P 500 gained 0.2% on Monday, while the Nasdaq was up 0.3%.

The array of stock markets records suggest investors remain excited about Trump's efforts to slash corporate taxes -- despite the plan hitting roadblocks in the Congress.

3. More Brexit pain: Inflation in the U.K. spiked to 3% in September, according to official data.

The surge in prices -- which are rising faster than paychecks -- is largely due to the slump in the value of the pound in the aftermath of the Brexit referendum.

Investors are getting very nervous about the uncertainty surrounding the future trading relationship between the U.K. and EU after Brexit talks hit deadlock last week.

British Prime Minister Theresa May met European Commission President Jean-Claude Juncker in Brussels Monday in an attempt to accelerate talks. There was no sign of the meeting resulting in a breakthrough.

Bank of England Governor Mark Carney will testify in the U.K. parliament on Tuesday and investors will be watching for any hints on when the bank plans to raise interest rates.

4. Global market overview: European markets and markets in Asia were mixed on Tuesday.

Oil prices edged higher on Tuesday because of tensions in the Middle East. Iraqi security forces took control of the strategic city of Kirkuk, driving hundreds of families from the oil-rich territory that had been under Kurdish control for more than two years, security sources and witnesses told CNN.

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5. Stock market movers: Shares in Netflix (NFLX, Tech30) were higher in extended trading after its results beat analysts' estimates on Monday.

The company added more than 5 million new subscribers in the third quarter. It now has 109 million customers, up from 86 million in the same quarter a year ago. Netflix also said it would spend $8 billion on shows and movies next year.

Shares in Credit Suiss (CSGKF)were 2% higher early on Tuesday after reports suggested the Swiss bank is being targeted by activist investors seeking to break the bank up into several separate companies.

Activist investor RBR Capital Advisors confirmed it was in talks with the bank and would unveil its plans on Friday. RBR owns about a 0.2% stake in Credit Suisse.

Merlin Entertainment (MERLY) plunged almost 21% in London after it reported mixed trading in part due to a series of terror attacks in the U.K.

6. Companies and economics: Goldman Sachs (GS), Harley-Davidson (HOG), Johnson & Johnson (JNJ), Morgan Stanley (MS) and UnitedHealth (UNH) plan to release earnings before the open on Tuesday.

IBM (IBM, Tech30) will follow after the closing bell.

The Federal Reserve will release its Industrial Production report for September at 9:15 a.m. ET Tuesday.

Microsoft (MSFT, Tech30) is set to release its updated version of Windows 10 on Tuesday, as well as some of the company's new virtual reality products.

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7. Coming this week:

Tuesday -- Earnings from UnitedHealth, Morgan Stanley, Goldman Sachs and IBM.
Wednesday -- American Express (AXP) earnings
Thursday -- 30th anniversary of Black Monday; Deadline for pitches for Amazon (AMZN, Tech30) HQ2 location
Friday -- Earnings from General Electric and Procter & Gamble.

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