Dow futures rebounded 260 points Tuesday, the day after the average of 30 stocks fell more than twice as much during Wall Street’s price slide in September. Investor concerns on Monday included risks related to this week’s Federal Reserve meeting, increased Covid cases in the US, debt caps in Washington, and possible financial market contagion from competitive Chinese developer Evergrande. (CNBC)
* First Evergrande Debt Crisis Test Comes This Week (CNBC)
* Here’s What China Evergrande (CNBC) Investors Should Know
* Washington traffic collapse, debt ceiling showdown weighs on the market (CNBC)
* Cramer still sees no reason to buy the stock market low (CNBC)
The Dow closed 614 points, or nearly 1.8%, lower in its worst session since July on Monday. The Dow lost 971 points from Monday’s low, nearly 5.7% below its intraday all-time high from the previous month. The Nasdaq and S&P 500 had their worst days since May on Monday, falling 2.2% and 1.7%, respectively. Both were also more than 5% off their all-time intraday highs earlier this month. (CNBC)
The Fed will receive a report on the housing market at 8:30 a.m. ET, while policy makers begin their two-day September meeting on Tuesday morning. Economists estimate housing construction rose 1% in August, after falling 7% in July. Building permits fell 2.1% in August, compared to a 2.6% increase in July. (CNBC)
Central bankers will bring this data into the mix when considering when to cut back on their massive Covid-era bond purchases. Hotter inflation, which Fed Chairman Jerome Powell sees as temporary, is being weighed against a recovering economy. However, a major disappointment in job growth in August could hold the Fed in check a little longer. (CNBC)
TODAY IN THE NEWS
Democratic leaders in Congress said they would seek to pass a law preventing the government from closing and suspending the U.S. debt ceiling until the end of 2022. You are trying to avoid two possible crises at the same time. Congress has a September 30 deadline to fund the federal government. Treasury Secretary Janet Yellen has told lawmakers that the US will likely be unable to pay its bills at some point in October. (CNBC)
In his first address to the UN General Assembly as US President, President Joe Biden plans to call on allies to work together on challenges such as Covid and climate change. The speech is scheduled for Tuesday morning. Eight months into his presidency, Biden was inconsistent with allies on a number of issues, including coronavirus vaccine sharing. (AP)
Johnson & Johnson (JNJ) is among the stocks that are in motion in Tuesday’s pre-trading session. J&J shares rose about 1% after the company said a booster shot of its Covid vaccine in the US is 94% effective when given two months after the first dose. Six months after the first shot, a J&J booster appears to be potentially even more protective. Approximately 14.8 million people in America have received the company’s single-dose vaccine. (CNBC)
* Covid is deadliest US pandemic: fatalities exceed 1918 flu estimates (CNBC)
Alphabets (GoogL) Google announced that it is buying an office building in New York City for $ 2.1 billion, one of the clearest signals of big tech’s growing appetite for office space, even if these companies prefer remote work. According to data company Real Capital Analytics, it is the most expensive single US office building sale since Covid began and one of the most expensive of all time in America. (WSJ)
Uber (UBER) stocks rose 5% after the ride and food delivery company revised its third quarter outlook upward. Uber now expects adjusted earnings before interest, taxes, depreciation and amortization to range from a loss of $ 25 million to a profit of $ 25 million. Uber previously said it expects adjusted EBITDA for the third quarter to be better than a loss of $ 100 million.
Revolut, a global fintech player valued at $ 33 billion, will soon be offering US customers commission-free stock trading for the first time, CNBC has learned. The startup will announce Tuesday that it has secured a US broker-dealer license that will allow it to compete with Robinhood (HOOD) and Square (SQ). (CNBC)
When it went public on Tuesday, the Universal Music Group, Europe’s largest listing of the year to date, rose by around 30%. The company behind platinum-selling artists like Lady Gaga and Taylor Swift, which is listed on Euronext Amsterdam, has a valuation of more than $ 52.8 billion. (CNBC)
Ford (F) has presented a new Timberline off-road model as part of the update of the Expedition SUV 2022. The new model has a refreshed exterior design, increased ground clearance and other off-road features such as improved tires and a robust underrun protection to protect the vehicle underbody. (CNBC)
SHARES TO VIEW
Apple (AAPL) rose about 1% in the premarket after a Wall Street Journal report reported that the company was working on iPhone features to detect depression and cognitive decline. The features would use sensor data to detect these health issues, the journal said, citing people familiar with the matter.
Oil stocks, including Chevron (CVX) and Exxon Mobil (XOM), rebounded pre-trading as crude oil prices rose. Chevron and Exxon Mobil both gained more than 1%. Stocks were hit during Monday’s sell-off as concerns over global economic growth dragged the price of oil down.
Enphase Energy (ENPH) rose 1.8% in early morning trading after KeyBanc began coverage of the stock with an overweight rating. The company said the solar energy business has solid core business and growing opportunities.
Vail Resorts (MTN) gained 1.7% pre-IPO after KeyBanc upgraded the stock from sector weight to overweight. KeyBanc said Vail Resorts should benefit from the strong demand for winter vacation.
Big Lots (BIG) fell 1.3% in early morning trading after Piper Sandler downgraded the retailer from overweight to neutral. The company said the end of fiscal stimulus would hurt big lots.