5 things to know before the stock market opens Tuesday, December 27
A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 14, 2022.
Andrew Kelly | Reuters
Here are the most important news items investors need to start their trading day:
1. Stretch home for stocks
Investors are raising hopes for a rally that will end in 2022, even though stocks are headed for a December drop and their worst since 2008. News reports that China has edged down. effectively ended the Covid-free policy (more on that below) in global markets and added some impetus to global markets US Stock Futures early Tuesday. However, we can expect some volatility this week as trading volume is expected to be low as it is the week between Christmas and New Year. Read live market updates this.
2. China plans to open up
Tourists check in at Hongqiao International Airport in Shanghai on December 12, 2022, after China eased domestic travel restrictions.
Qilai Shen | Bloomberg | beautiful pictures
The Chinese government, for all intents and purposes, is ending its Covid-free policy. By January 8, travelers to Mainland China will no longer have to isolate. On the same day, Chinese officials also plan to stop tracking people who have been in close contact with Covid, suspend the designation of risk areas and end measures to hinder import activities. Chinese nationals will also soon be able to travel abroad, officials said. While these rapid changes have raised optimism in markets, including in the oil trade, China finds itself facing a surge in infections that are straining its system. health system of the country.
3. Blizzard’s Deadly Consequences
An excavator clears a road on December 24, 2022 in Hamburg, New York. The Buffalo suburbs and surrounding area were hit hard by winter storm Elliott with winds of more than 70 mph, devastating homes and businesses throughout the weekend. (Photo by John Normile/Getty Images)
John Normile | Getty Images News | beautiful pictures
The winter storm that hit much of the country has causing dozens of deaths, including at least 27 in the Buffalo region west of New York. The weather agency expects snow to continue through Tuesday in Erie County, New York. While Buffalo and the surrounding area are used to winter’s extreme weather conditions, officials called this blizzard, with more than 4 feet of snow and arctic temperatures, “generation” and ” one of the ages.” The storm hit as many Americans prepared to travel for the Christmas holidays over the weekend, but the weather caused thousands of flight cancellations (more on that below) and left many stranded. power failure.
4. Southwest slammed for flight cancellations
A Southwest Airlines plane rolls over as a Delta Air Lines plane lands at Reagan National Airport in Arlington, Virginia, U.S., January 24, 2022.
Joshua Roberts | Reuters
US Department of Transportation says it will review Southwest Airlines large flight cancellation rate as the country faced the aftermath of a massive, deadly blizzard. Southwest canceled 70% of its flights on Monday and warned it was on track to operate only a third of its schedule for a few more days as it worked to fix things. Southwest’s problems came as other airlines began to stabilize. The Department of Transportation said late Monday: “USDOT is concerned about Southwest Airlines’ disproportionate and unacceptable delay and cancellation rates and its failure to properly assist customers experiencing cancellation or delay.
5. Mysterious company appeared in the case of FTX
FTX founder Sam Bankman-Fried leaves after a trial in New York City on December 22, 2022.
Ed Jones | AFP | beautiful pictures
North Dimension, one of dozens of obscure companies in Sam Bankman-Fried’s crumbling crypto empire, is attracting more attention than expected. According to an SEC filing last week, investors wishing to trade on FTX were required to transfer funds to the North Dimension in an alleged attempt to conceal from customers that the funds were actually going to an account held by the company. Alameda Research, FTX’s sister company, controls. However, there’s more to it, and it’s just weird. According to an investigation by NBC News, North Dimension also has a now defunct and possibly fake website intended to sell electronics. It did not mention any connections to SBF’s businesses, but it did share the Berkeley, California, address with FTX US. Read more from NBC News.
— Sarah Min, Evelyn Cheng and Leslie Josephs of CNBC contributed to this report.
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