5 things to know before the stock market opens Thursday, Dec. 16
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These are the top news, trends, and analyses that traders need in order to get started with trading.
1. S&P 500 set for record at open in a relief rally after Fed’s tightening decision
New York Stock Exchange floor traders.
Michael Nagle/Bloomberg via Getty Images
Dow futures roseMore than 200 points were traded Thursday. This indicates a continuing surge in investor satisfaction with the Federal ReservePlan to increase its bond-buying taper. Projections for three rate rises next year.
- The average 30-stock stock price, S&P 500And the NasdaqAfter the Fed’s two-day December meeting, when they made their decision on Wednesday afternoon, prices were significantly lower.
- The S&P 500 finished 1.6% higher, just a couple of points awayRecord close last week
- Ending the day, Dow and Nasdaq were nearly 1.4% and 3.3% respectively above their record closings last month.
- The Nasdaq won Wednesday’s big win, but the index was also the biggest loser in recent times.
2. Trio of economic news reports were released before the bell.
The government releases its initial Thursday jobless claims for this week, following hot inflation numbers and lower retail sales growth. ET one hour prior to the Wall Street opening bell.
According to economists, the number of first-time claims for unemployment benefits will rise to 195,000 in week Dec. 11. The number of new claims for unemployment benefits fell by 184,000 from the week before. the lowest tally in more than 52 years. Also, at 8:30 a.m. ET also sees the release of November permits and housing starts by the government, while the Philadelphia Fed has its December business conditions index.
3. Fed announces faster taper; plans to start rate increases from close zero in 2022
Jerome Powell (chairman of the U.S. Federal Reserve) speaks at a live streamed news conference that was held following a Federal Open Market Committee meeting in New York on Wednesday, December 15, 2021.
Getty Images| Bloomberg | Getty Images
This trio of economic reports comes one day after Fed provided multiple indicationsIt is ending its ultra-easy policies since the Covid pandemic.
- Central bankers will begin raising interest rates when the slower tapering stops in early spring or later winter.
- Not only are there three rate hikes in the future, but two additional rates will follow in 2023. Then two more will be seen in 2024.
- Next year, Fed will increase its inflation outlook and reduce its forecast of economic growth. They also call for improved job markets.
- In its policy, the Fed noted again that the Fed is concerned about developments in the Covid pandemic and variants thereof.
4. Regeneron is working on a new treatment as omicron grows.
Brittany Kolkhorst is being checked by Dr. Ulrika Wiggert (family practice physician), after she was admitted to the CentraCare Sauk Centre Hospital, Sauk Centre, Minn. on Tuesday, November 23, 2021.
The Washington Post | The Washington Post | Getty Images
Spreading the Covid omicron variation around the globe may bring another waveThe U.S. is facing chaos, which could further strain hospital staff already dealing with an increase in delta cases and disrupt holiday plans for the 2nd year. Wednesday’s White House statement stated that there is no need to lock down, as vaccines are readily available and offer protection from the most severe effects of the virus.
This Thursday Regeneron PharmaceuticalsCovid’s “next generation” anti-omicron Covid was effective against all variants of concern. Although the company stated that its current authorized antibodies had “diminished power against Omicron,” it added that they were “active against Delta, currently the most common variant in the U.S.”
5. Delta Air Lines predicts Q4 profits as travelers demand and fares rise
On August 25, 20,21, a Delta Air Lines employee worked at Los Angeles International Airport’s departures level (LAX). This was in Los Angeles.
Mario Tama | Getty Images
Delta Air Lines said Thursday it now expectsFor the fourth quarter, to make a profit before taxes of $200 million. The airline had forecast losses in the past. The news prompted a more than 2% increase in premarket shares. According to the securities filing, Atlanta’s airline said that it expected fourth quarter revenue to be 26% lower than 2019 when it made $11.44 billion. This was before its first investor day since the pandemic.
— The Associated Press contributed to this report. You can follow all market activity like a professional. CNBC Pro. The latest information on pandemics is available here CNBC’s coronavirus coverage.
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