5 things to know before the stock market opens Monday
Here are the most important news, trends and analysis that investors need to start their trading day:
- Dow set to add to Friday's gains; bond yields also rise
- Bitcoin moves higher one day after topping $50,000
- FDA reportedly works on full approval of Pfizer vaccine
- VP Harris says U.S. focused on evacuations out of Afghanistan
- Henri drenches Northeast; record rain swamps Tennessee
1. Dow set to add to Friday's gains; bond yields also rise
Dow futures rose over 150 points Monday after the 30-stock average broke a three-session losing streak on Friday with a 225-point gain. The S&P 500 and Nasdaq logged their second straight positive days. But Friday's rally was not enough to lift the three stock benchmarks out of negative territory for the week. They all hit record closing highs earlier this month.
Bond yields started the week higher. The 10-year Treasury yield traded around 1.28% on Monday, ahead of the Federal Reserve's Jackson Hole economic symposium. The Kansas City Fed announced last week it will hold the annual gathering of central bankers virtually this year due to rising Covid cases. Fed Chairman Jerome Powell's address to the group this Friday will be livestreamed.
2. Bitcoin moves higher one day after topping $50,000
Bitcoin rose more than 3% on Monday, one day after topping $50,000 and hitting a three-month high. Bitcoin hit an all-time high over $64,000 in April but sold off heavily in June and July, even briefly dipping below $30,000. But since mid-July, bitcoin has been on a steady rise. Other major digital coins were also higher Monday, with ether trading up over 5%.
In the last few days, two key announcements have been positive for cryptocurrencies. PayPal on Monday said it's launching this week its service to let people buy, hold and sell digital currencies in the U.K. Last week, Coinbase said it would buy $500 million in crypto on its balance sheet and allocate 10% of profits into a crypto assets portfolio.
3. FDA reportedly works on full approval of Pfizer vaccine
The FDA is working on full approval for the two-shot Covid vaccine made by Pfizer and BioNTech as soon as Monday, The New York Times reported, citing sources. The move would make it the first Covid vaccine to go from emergency use authorization to full FDA approval.
U.S. companies have tightened vaccine rules for employees as Covid cases have spiked across the country in recent weeks due to the rampant delta variant. Some firms cited full approval from the FDA as part of the decision-making process. The FDA declined to comment on the Times report to CNBC.
4. VP Harris says U.S. focused on evacuations out of Afghanistan
The primary focus of the U.S. in Afghanistan right now is to evacuate American citizens, Afghan allies and vulnerable groups, Vice President Kamala Harris said Monday, speaking to reporters during a trip to Singapore. The Pentagon has ordered U.S. commercial airlines to provide planes to help speed the process.
The Biden administration is facing mounting criticism over its handling of the U.S. military withdrawal from Afghanistan. Last week, the civilian government there collapsed and the Taliban took power. Thousands have flooded to the Kabul airport in hopes of escaping. Early Monday, a firefight broke out at the airport.
5. Henri drenches Northeast; record rain swamps Tennessee
Henri continued to drench parts of Northeast on Monday. The slow-moving system, which made landfall as a tropical storm Sunday in Rhode Island, already dumped 3 to 6 inches of rain. About 1 to 3 inches of additional rainfall are forecast for parts of New England, New York, New Jersey and eastern Pennsylvania.
At least 22 people were killed and rescue crews searched on Sunday for dozens of people still missing after record-breaking rainfall in Tennessee. The flooding in rural areas of the state took out roads and homes, leaving families uncertain about whether their loved ones survived the unprecedented deluge.
— Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC's coronavirus coverage.
Source: Read Full Article