5 things to know before the stock market opens Monday, Dec. 20
Investors need the following news, analysis and trends to help them start trading:
1. Dow futures drop on concerns about micron after a tough week
On Monday, December 13, 2021, a trader is working on the New York Stock Exchange’s floor in New York.
Getty Images| Bloomberg | Getty Images
U.S. stock futuresOn Monday, the Dow futures dropped by more than 1 percent. This week was shortened for holidays and filled with concerns about the rapid spread of the omicron Covid variant. Dow futures dropped more than 400 point after the news. 30-stock averageOn Friday, the drop was close to 1.5% sank almost 1.7% for the week. The S&P 500On Friday, the decline was almost 1% and on week-end it was nearly 2%. It was the NasdaqOn Friday, the Dow fell 0.07% and lost roughly 3%. Despite the recent weakness, all three benchmarks were still way up for the year, with the Dow, S&P 500 and Nasdaq rising more than 15.5%, 23% and 17.7%, respectively, in 2021, as of Friday’s close.
2. Moderna leaps when its booster protects against omicron
Jakub Porzycki | NurPhoto | Getty Images
Early Monday, stocks futures experienced deeper losses ModernaA third dose was given of Covid. appears to provide significant protection against omicron. A booster dose of 50micrograms has been approved for use and can boost neutralizing antibodies levels by 37 times more than the pre-boost levels. The 100-microgram dose was the same as the previous two shots and showed an “approximately 83%” increase in effectiveness. The company’s vaccine is far less effective than the booster without it. Moderna stated that it will continue developing an omicron-specific booster. The premarket saw shares rise 5% which is a remarkable result after Monday’s lower market.
3. Goldman cuts GDP forecast after Sen. Manchin dooms Biden bill
Elizabeth Frantz | Reuters
An apparent failure by President Joe BidenAccording to the “Build back Better” plan, economic growth may not be as strong next year. according to Goldman Sachs. The plan hit a wallSunday, Democratic West Virginia Senate Joe ManchinThe bill is not supported by enough votes in the Senate to be passed at 50-50 because he said that he wouldn’t support it. Although BBB looks unlikely in the current form, Congress may still pass a smaller number of fiscal proposals to address manufacturing incentives and supply-chain issues.” This was partly hampered by Covid Goldman’s Sunday letter to clients.
4. Davos conference of billionaires, world leaders and CEOs delayed
The entrance hall to the Congress Center is decorated with a logo in advance of the World Economic Forum, (WEF), which will be held in Davos Switzerland, Monday, January 20, 2020.
Jason Alden | Bloomberg | Getty Images
Monday was a day of uncertainty for the World Economic Forum, as Covid worries led to it postponing its annual Davos gathering, which gathers world leaders, billionaires, and CEOs. It was originally scheduled for Jan. 17-21. The purpose of the event is to address the economic, social, and environmental fault lines that have been exacerbated due to the pandemic. According to the WEF, “It has been moved to early summer.” Instead, organizers announced that a series of online “State of the World” sessions would be held to “focus on shaping solutions for the most urgent challenges facing the planet.” The WEF canceledA summer version of the meeting will be held in Singapore, August. An earlier virtual conference took place this year.
5. Elon Musk declares that he’ll be paying over $11 Billion in taxes this tax year
Maja Hitij | Getty Images News | Getty Images
Elon Musk faces a hefty tax bill this year — possibly the biggest in U.S. history. Tesla CEO Musk tweeted, “For all those curious, this year I will pay more than $11 billion in tax,” Monday. Musk sold $14 billion of Tesla stock in November after asking his Twitter followers if they should let him sell 10%. That poll received a unanimous “yes” response. It’s possible Musk would vote regardless. started selling anyway to pay options-related taxes. Tesla shares lost about 2% during Monday’s premarket. Tesla is still higher than 30% year-to-date, but it has fallen 15% over the past month. This puts them back below $1 trillion in market capital.
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