Here are the key news, trends, and analysis investors need to start their trading day:
1. Dow futures fell with a strong rally after the start of October
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA on September 29, 2021.
Brendan McDermid | Reuters
US stock futures fell slightly on Monday after ending a rough week with a strong rally on the first day of October. The Dow Jones Industrial Average led the way up on Friday, up 482 points, or 1.4%. The S&P 500 was up 1.2%. The 0.8% rise in the Nasdaq broke a streak of five sessions. The tech-heavy index was more than 5.2% off its last record high on September 7th. The S&P 500 was nearly 4% off its September 2nd close. The Dow was more than 3.6% off its August 16th high.
October is known for its volatility, but the fourth quarter was mostly a positive time for the market. Many Wall Street strategists expect stocks to beat their recent highs after a rocky period in October. The S&P 500 averaged oversized gains of 3.9% in the fourth quarter, up four out of five times since World War II, according to the CFRA. September was the worst month in 2021.
2. US sales agent promises to enforce “phase one” deal with China
U.S. Trade Representative Katherine Tai testifies during a proposed 2022 budget hearing for the U.S. Trade Representative’s Office on Capitol Hill on April 28, 2021 in Washington, DC.
Sarah Silberner | Getty Images News | Getty Images
Washington must enforce the US-China Phase 1 trade deal and it will raise broader political concerns about Beijing, US Trade Representative Katherine Tai said on Monday. CNBC reported last week that the top trade advisor would announce that Beijing had failed to honor the Phase 1 deal reached under the administration of former President Donald Trump. Tai’s speech at 10 a.m. ET at the Washington think tank, the Center for Strategic and International Studies, will outline the Biden government’s China trade strategy.
3. Evergrande, which is in trouble, wants to raise more money from the partial sale
China Evergrande Group’s headquarters in Shenzhen, Guangdong Province, China on February 9, 2021.
Shen Longquan | Visual China Group | Getty Images
The indebted property developer China Evergrande Group will sell part of its stake in its real estate services unit. Trading in shares of Evergrande and Evergrande Property Services ceased on Monday morning. In a filing with the Hong Kong Stock Exchange, Evergrande said it had requested to stop trading prior to announcing a “big deal”. Last week, Evergrande announced it would sell a $ 1.5 billion stake in Shengjing Bank to a state-owned asset management company.
4. Whistleblower says Facebook is “much worse” than rivals
Olivier Douliery | AFP | Getty Images
Frances Haugen – a Facebook whistleblower who brought internal documents to the Wall Street Journal and Congress about the company’s research – revealed her identity before an interview she gave on the CBS show “60 Minutes,” which aired Sunday night. The documents showed that Facebook executives were aware of the negative impact its platforms had on some young users.
According to her website, Haugen was a former product manager on Facebook’s civic disinformation team. According to her LinkedIn profile, Haugen previously worked as a product manager at Pinterest, Yelp and Alphabets Google. “I’ve seen a number of social networks and it was much worse on Facebook than anything I’ve seen before,” Haugen told 60 Minutes. Facebook shares, which were down 10% last month, fell nearly 1% in the premarket on Monday.
5. Tesla exceeds expectations with deliveries in the third quarter despite delays
The Tesla logo that can be seen in one of its showrooms. Tesla today announced its results for the first quarter of 2021.
Toby Scott | LightRakete | Getty Images
Tesla stock – up nearly 10% year-to-date – rose nearly 3% in the premarket after the company announced on Saturday that it shipped 241,300 electric vehicles, better than expected, in the third quarter of 2021. Most were Model 3 and Y, the more affordable mid-range offerings. The rest were the high-end models Model S and X. Tesla does not disclose the delivery figures by model, nor the sales or production figures from China compared to the USA. It also thanked the customers for their patience.
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