Here are the most important news, trends and analysis that investors need to start their trading day:
- Dow set to rebound after Monday's sharp decline
- Fed gets healthier housing data as meeting begins
- Democrats pair debt ceiling, spending in one bill
- Biden to address the U.N. about Covid, climate
- J&J reveals booster data; Uber raises Q3 outlook
1. Dow set to rebound after Monday's sharp decline
Dow futures rebounded more than 200 points Tuesday, one day after the 30-stock average slumped roughly triple that amidst Wall Street's September slide. The Dow ended 614 points, or nearly 1.8%, lower in its worst session since July. The Dow was down 971 points at Monday's low, which had been almost 5.7% below last month's intraday all-time high. Investor concern included risks over 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. Both were also off more than 5% from their all-time intraday highs from earlier this month.
2. Fed gets healthier housing data as meeting begins
The Fed got a read on the real estate market as monetary policymakers are beginning their two-day September meeting Tuesday morning.
- August housing starts increased a better-than-expected 3.9% to an annual rate of nearly 1.62 million units compared to a revised 6.2% decline in July.
- Building permits in August rose 6% to nearly 1.73 million. Economists had seen a 2.1% drop. The July increase was revised slightly lower to 2.2%.
Central bankers will put that data into the mix as they consider when to start tapering their massive Covid-era bond purchases. 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. Central bankers release their policy statement Wednesday, followed by a Powell news conference.
3. Democrats pair debt ceiling, spending in one bill
Democratic congressional leaders said they will try to pass a bill that prevents a government shutdown and suspends the U.S. debt limit through the end of 2022. They're trying to simultaneously dodge two possible crises. Congress faces a Sept. 30 deadline to fund the federal government. 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
President Joe Biden, in his first address to the U.N. General Assembly as U.S. chief executive, plans to call on allies to cooperate on challenges including Covid and climate change. The speech is scheduled for midmorning Tuesday. Eight months into his presidency, Biden has been out of sync with allies on the chaotic ending to the U.S. war in Afghanistan. He has faced differences over how to go about sharing coronavirus vaccines with the developing world and over pandemic travel restrictions. Biden also finds himself in the midst of a spat with France over a deal to sell nuclear submarines to Australia.
5. J&J reveals booster data; Uber raises Q3 outlook
Johnson & Johnson is among stocks on the move in Tuesday's premarket trading. Shares of J&J rose more than 0.5% 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. Some 14.8 million people in America have received the company's single-dose vaccine.
Shares of Uber rose about 6% after the ride-hailing and food delivery company revised higher its outlook for its third quarter. Uber said it 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 expected adjusted EBITDA for Q3 to be better than a loss of $100 million.