5 things you should know before the stock market opens on Tuesday October 12th


Business News

Here are the key news, trends, and analysis investors need to start their trading day:

1. Wall Street tries to avoid a 3-session losing streak

Traders on the floor of the New York Stock Exchange, October 6, 2021.

Brendon McDermid | Reuters

US stock futures remained stable on Tuesday as increased bond yields and US oil prices eased. West Texas Intermediate crude was still at a seven-year high of over $ 80 a barrel. The 10-year government bond yield was trading back to its June high of around 1.6% before the government released its latest survey on job vacancies and labor turnover at 10 a.m. ET. Economists expect 10.9 million vacancies at the end of August, unchanged from the record level at the end of July.

On Monday, the Dow continued its weakness from Friday due to much weaker than expected job growth in September. The 30-share average, the S&P 500 and the Nasdaq all fell about 0.7% earlier in the week amid concerns about how rising oil prices could affect Covid’s economic recovery. The Dow lost nearly 3.2% from its record high on August 16. The S&P 500 was almost 3.9% below its record close on September 2nd. The Nasdaq was down about 5.8% from its record close on September 7th.

2. House votes on short-term debt ceiling

The U.S. Capitol in Washington, DC, the United States, on Wednesday, October 6, 2021.

Stefani Reynolds | Bloomberg | Getty Images

The House of Representatives will vote on a short-term debt ceiling hike on Tuesday and send the measure to President Joe Biden for signature. The $ 480 billion compromise increase will allow the federal government to pay its bills by early December. The Senate clarified this last week in a democratic vote on the party line. The October 18 stalemate ended when Senate GOP leader Mitch McConnell agreed to pass the short-term increase. But he insists he won’t do it again. McConnell wants the Democrats to use their narrow majorities on Capitol Hill to respond to the debt ceiling through the reconciliation process alone.

3. Southwest Airlines cancels dozen more flights

Travelers wait to check-in at the Southwest Airlines ticket booth at Baltimore Washington International Thurgood Marshall Airport on October 11, 2021 in Baltimore, Maryland.

Kevin Dietsch | Getty Images

Southwest Airlines canceled 87 flights, or about 2% of Tuesday’s flight schedule, after canceling about 2,220 flights since Saturday. More than half of the cancellations came on Sunday when Southwest wiped out 30% of its daily schedule. In August, the airline reduced its flight schedule in hopes of resolving the summer operational problems that regularly resulted in dozens of cancellations. There has been speculation that the disruptions this weekend were caused by excessive sick leave from workers related to a Covid vaccine mandate. Southwest said it was “inaccurate” and “unfounded”.

4. GOP Texas governor bans Covid vaccine mandates

Governor Greg Abbott speaks at the National Rifle Association (NRA) annual meeting in Dallas, Texas.

Lucas Jackson | Reuters

Texas Republican Governor Greg Abbott issued an executive order banning corporations, including private companies, from imposing Covid vaccination regulations on employees or customers. “The COVID-19 vaccine is safe, effective and our best defense against the virus, but it should be voluntary and never enforced,” Abbott said in a statement. He said in his order that this was triggered by the Biden government’s federal immunization mandate, which the Texas governor described as a federal transgression.

5. Jamie Dimon says he thinks Bitcoin is worthless

Jamie Dimon, CEO of JPMorgan Chase, speaks at the Economic Club of New York in New York on January 16, 2019.

Carlo Allegri | Reuters

Jamie Dimon is still a bitcoin skeptic. JPMorgan’s CEO said at a conference Monday that the world’s largest digital currency has no intrinsic value. “Personally, I think Bitcoin is worthless,” said Dimon. “But I don’t want to be a spokesman for it, I don’t care. It doesn’t make a difference to me. Bitcoin was lower on Tuesday, but it was still above $ 57,000, a level not seen since May. It’s been a rally lately. Bitcoin was up about 30% in October. It hit an all-time high of $ 65,000 in April before dropping below $ 30,000 this summer.

– Reuters and NBC News contributed to this report. Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.

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