BY THE NUMBERS
U.S. stocks were sliding in Tuesday’s premarket, indicating further September losses with just three days left in one of the historically weakest months of the year. Nasdaq futures were sinking 200 points, or 1.5%. S&P futures were down almost 1%. Dow futures were dropping nearly 0.5%. The Nasdaq and S&P 500 fell Monday. The Dow rose modestly. Monday’s divergence came as Treasury yields rose. (CNBC)
The 10-year Treasury yield, increasing on economic optimism and inflation fears, remained above 1.5% on Tuesday, back to levels not seen since June. Higher bond yields, which move in the opposite direction of prices, can put pressure on tech stocks by exposing their high valuations. (CNBC)
Energy stocks, however, were higher in premarket trading as U.S. oil prices rose about 1% to around $76 per barrel, nearly a three-year peak. U.S. oil prices soared 77% this year as Covid-disrupted business activity continued to recover. (CNBC)
Fed Chairman Jerome Powell, in remarks prepared for Tuesday’s Senate Banking Committee hearing, cautioned lawmakers that the causes of the recent rise in inflation may last longer than anticipated. The remarks are part of mandated testimony Powell must give to Congress regarding the Fed’s economic response to the Covid pandemic. He goes before the House Financial Services Committee on Thursday. (CNBC)
* Dallas Fed President Kaplan to retire early, cites trading disclosure ‘distraction’ (CNBC)
* Boston Fed President Rosengren abruptly announces earlier retirement (CNBC)
Senate Republicans blocked a House-passed bill that would prevent a federal government shutdown and a potential default on U.S. debt. Lawmakers need to pass an appropriations bill by Thursday to avoid a shutdown, and they must suspend or increase the debt ceiling sometime in the coming weeks to prevent a default. Democrats may be forced to suspend the debt limit on their own, potentially as part of their up to $3.5 trillion budget reconciliation bill. (CNBC)
IN THE NEWS TODAY
Pfizer (PFE) announced Tuesday that it asked the FDA to clear its Covid vaccine for kids 5 to 11 for emergency use. Last week, U.S.-based Pfizer and its German partner BioNTech (BNTX) said a smaller two-dose regimen was safe and generated a “robust” immune response in a clinical trial. The application to U.S. health regulators comes as infections have soared in young kids, hitting their highest point in early September, according to data from the American Academy of Pediatrics. (Reuters)
* Pfizer starts study of mRNA-based next generation flu vaccine (Press Release)
* Unvaccinated Americans say the need for boosters prove Covid vaccines don’t work (CNBC)
Sanofi (SNY) announced positive results from a study of its own MRNA-based Covid vaccine, but then said it …….
