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Here are the most important news, trends and analysis investors need to start their trading day:
1. Wall Street is down after a bright spot in a tough month
People walk past the New York Stock Exchange on August 9, 2021.
Andrew Kelly | Reuters
U.S. equity futures fell Thursday ahead of retail sales and weekly jobless claims data, released at 8:30 a.m. ET. The Dow Jones Industrial Average and S&P 500 rallied on Wednesday for their second gain in the past eight sessions. The Nasdaq shattered a five-game losing streak. Before Thursday’s opening on Wall Street, the Dow, S&P 500 and Nasdaq were all down during the historically difficult September. The Dow Jones was 2.3% off its August 16 closing high. The S&P 500 was more than 1.2% off its September 2 close high. The Nasdaq was 1.4% off its September 7 closing record.
2. Investors should watch the latest retail sales and weekly jobless claims data
Economists expect retail sales for August to fall 0.8% after falling 1.1% in July. Initial jobless claims for the week ending September 11 are expected to rise slightly to 320,000 from the low of 310,000 the week before during the pandemic. Investors will look at Thursday’s data for signals on how the economy is resisting high cases of Covid in the United States due to the spread of the delta variant and how that could figure in the Federal Reserve’s thoughts on when to start reducing bond purchases. Central bankers are expected to hold their two-day meeting in September next week.
3. Much of September’s losses historically occur at the end of the month
A screen shows Federal Reserve Chairman Jerome Powell speaking as a trader works inside a job on the floor of the New York Stock Exchange (NYSE), August 27, 2021.
Brendan McDermid | Reuters
The Fed’s policy statement next Wednesday and the press conference by Fed chief Jerome Powell are wild cards in an already particularly weak period for equities. Historically, most of September’s losses occur in the second half of the month. In fact, it looks like the S&P 500 typically peaks around the 17th day of the month, this Friday. CNBC’s Jim Cramer and others on Wall Street have warned against this model. So far in September, the index was down almost 1%. The Dow Jones and the Nasdaq, for the month, fell 1.5% and 0.6% respectively. However, since the start of the year, the S&P 500 has risen nearly 19.3%; the Dow Jones rose more than 13.7%; and the Nasdaq was up 17.6%.
4. FDA adopts cautious tone ahead of vaccine booster meeting
Vials and a medical syringe displayed in front of the United States Food and Drug Administration (FDA) logo. The FDA finds the COVID-19 vaccine.
Pavlo Gonchar | LightRocket | Getty Images
5. Southwest Airlines Unveils New Covid Vaccine Incentives For Staff
A passenger plane operated by American Airlines Group Inc. lands at Miami International Airport in Miami, Florida, United States on Wednesday, June 16, 2021.
Eva Marie Uzcategui | Bloomberg | Getty Images
Southwest Airlines has introduced new incentives to vaccinate its staff against Covid. The Dallas-based carrier will offer additional pay to workers who show proof of full vaccination by mid-November, according to a note from the company, which has been reviewed by CNBC. US airlines have taken various approaches to vaccinate their staff. United has demanded that its US workforce of around 67,000 be vaccinated, saying it will put staff with religious exemptions on temporary unpaid leave. Delta Air Lines plans to bill unvaccinated employees an additional $ 200 per month for the company’s health insurance starting in November.
– The Associated Press contributed to this report. Follow all market actions like a pro on CNBC Pro. Get the latest pandemic news with CNBC’s coronavirus coverage.
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