5 things to know before the stock market opens Tuesday, Sept. 21
Here are the most important news, trends and analysis that investors need to start their trading day:
1. Dow set to rebound after Monday’s sharp decline
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Sept. 20, 2021.
Bloomberg – Getty Images Wall Street fell by 300 points Tuesday.| Bloomberg | Getty Images
Dow futures rebounded 300 points Tuesday, one day after the 30-stock average slumped more than double that, exacerbating Wall Street’s September slide. In its worst session since July, the Dow finished 614 points lower, nearly 1.8% below. Monday’s Dow low was 971 points, or nearly 1.8% lower than the intraday record high. Investor concern about a range of risks, including this week’s Federal Reserve meeting, elevated Covid cases in the U.S., debt ceiling brinkmanship in Washington, and possible financial market contagion from embattled Chinese developer Evergrande. The Nasdaq and S&P 500 on Monday had their worst days since May, sinking 2.2% and 1.7%, respectively. They were both also down more than 5% from the intraday peak they reached earlier in this month.
2. Fed to get new housing data as meeting begins
New townhomes are seen under construction while building material supplies are in high demand in Tampa, Florida, May 5, 2021.
Octavio J. Jones | Reuters
The Fed gets a read on the real estate market at 8:30 a.m. ET at the start of their September policy meeting. After a drop of 7% in July, economists predict that August’s housing starts will increase by 1%. The August decline in building permits is 2.1% compared with July’s 2.6% rise. As they decide when to stop buying massive Covid-era bonds, central bankers will consider this data. Hotter inflation, which Fed Chairman Jerome Powell sees as temporary, will be weighed against a recovering economy. However, a big disappointment in August job growth could keep the Fed at bay a little longer. The Fed will release its policy statement Wednesday morning, and Powell will hold a news conference.
3. Democrats pair debt ceiling, spending in one bill
Speaker of the House Nancy Pelosi, D-Calif., conducts news conference in the Capitol Visitor Center with House Democrats on achievements including the For The People Act and the agenda for the remainder of the year, on Friday, July 30, 2021.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
Democratic congressional leaders said they will try to pass a bill that both prevents a government shutdown and suspends the U.S. debt limit through the end of 2022. Two possible crises are being avoided simultaneously. Congress must fund the federal government by Sept. 30, or else they will be in serious trouble. Treasury Secretary Janet Yellen has told lawmakers the U.S. will likely not be able to pay its bills sometime in October if lawmakers don’t suspend or raise the debt ceiling. Senate Minority Leader Mitch McConnell, R-Ky., has been trying to force Democrats to use their slim Senate and House majorities to deal with the debt ceiling on their own.
4. Biden to address the U.N. about Covid, climate
U.S. President Joe Biden meets with United Nations Secretary-General Antonio Guterres at the 76th Session of the U.N. General Assembly in New York, September 20, 2021.
Reuters on Tuesday his first address as U.S. president to the U.N. General Assembly to call on allies to cooperate on challenges, including Covid and climate change.| Reuters
Joe Biden on Tuesday planned to use his first address as U.S. president to the U.N. General Assembly to call on allies to cooperate on challenges, including Covid and climate change. Biden is still not in agreement with the allies eight months after he assumed office. There have been disagreements over the sharing of coronavirus vaccines to developing countries and about travel restrictions for pandemics. Biden also finds himself in the midst of a spat with France over a deal to sell Australia submarines.
5. J&J reveals booster data; Uber raises Q3 outlook
A vial of Johnson & Johnson’s Janssen COVID-19 vaccine
Pacific Press | LightRocket | Getty Images
Johnson & Johnson is among stocks on the move in Tuesday’s premarket trading. Shares of J&J rose about 1% after the company said a booster shot of its Covid vaccine is 94% effective in the U.S. when administered two months after the first dose. Six months out from the first shot, a J&J booster appears to be potentially even more protective. One-dose vaccinations from J&J have been given to approximately 14.8 millions Americans.
Uber CEO Dara Khorshahi addresses a launch party in San Francisco on September 26th, 2019.
AFP via Getty Images The shares of rose 5% following a revised outlook by the ride-hailing company and food delivery service.| AFP via Getty Images
Shares of Uber rose 5% after the ride-hailing and food delivery firm revised higher its outlook for its third quarter. Uber said it now expects adjusted EBITDA — earnings before interest, taxes, depreciation and amortization — of between a loss of $25 million and a profit of $25 million. Uber stated previously that the adjusted EBITDA of Q3 would be higher than $100 million.
— The Associated Press contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.