5 things to know before the stock market opens on Tuesday, December 27
A trader works on the trading floor of the New York Stock Exchange (NYSE) in New York City, the U.S., on December 14, 2022.
Andrew Kelly | Reuters
Here is the most important news investors need to start their trading day:
1. Final stretch for actions
Investors are hopeful of a rally to end 2022, even as stocks head for a down December and their worst year since 2008. News that China has effectively ended its zero-Covid policy (more on that below) boosted global markets and added some energy. to US stock futures early Tuesday. Still, we could expect some volatility this week as trading volumes are expected to be low due to this being the week between Christmas and New Years. Read live market updates here.
2. China plans to open up
Travelers check in at Shanghai Hongqiao International Airport on December 12, 2022, after China eased domestic travel restrictions.
Qilai Shen | Mayor Bloomberg | fake images
The Chinese government is, to all intents and purposes, ending its zero Covid policy. On January 8, travelers arriving in mainland China no need to quarantine anymore. On that same date, Chinese officials also plan to stop tracing close Covid contacts, halt risk area designations, and end measures that hampered imports. Chinese citizens will soon also be able to travel abroad, authorities said. While these rapid changes have increased optimism in markets, including oil trading, China is facing a surge in infections that is straining the country’s healthcare system.
3. The Deadly Consequences of Blizzard
A loader clears the roads on December 24, 2022 in Hamburg, New York. The Buffalo suburb and surrounding area were hit hard by Winter Storm Elliott with wind gusts in excess of 70 miles per hour battering homes and businesses over the holiday weekend. (Photo by John Normile/Getty Images)
John Normile | Getty Images News | fake images
The winter storm that devastated much of the country has left dozens of dead, including at least 27 in the Buffalo region of western New York. Meteorological authorities expected snow to continue through much of Tuesday in Erie County, New York. While Buffalo and the surrounding area are used to harsh winter conditions, officials called this blizzard, with its more than four feet of snow and arctic temperatures, “generational” and “one for the ages.” The storm came as many Americans set out to travel over Christmas weekend, but the weather caused several thousand flights to be canceled (more on that below) and left many stranded without power.
4. Southwest criticized for cancellations
A Southwest Airlines plane rolls as a Delta Air Lines plane lands at Reagan National Airport in Arlington, Virginia, USA, on January 24, 2022.
Joshua Roberts | Reuters
The US Department of Transportation said it would investigate Southwest Airlines’ high rate of flight cancellations as the country deals with the aftermath of a huge deadly blizzard. south west it canceled 70% of its flights on Monday and warned it was on track to operate just a third of its schedule for several more days as it works to patch things up. Southwest’s problems arose when other airlines began to stabilize. “USDOT is concerned about Southwest Airlines’ disproportionate and unacceptable rate of cancellations and delays, as well as the lack of adequate support for customers who experience a cancellation or delay,” the Department of Transportation said Monday night.
5. A mysterious firm appears in the FTX case
FTX founder Sam Bankman-Fried leaves after his arraignment in New York City on December 22, 2022.
Ed Jones | AFP | fake images
North Dimension, one of dozens of shadowy companies within Sam Bankman-Fried’s collapsed crypto empire, is attracting more attention than it probably intended. According to an SEC filing last week, investors looking to trade in FTX were told to send money to North Dimension in an alleged attempt to hide from clients that the money was actually going to an account controlled by Alameda. Research, the sister firm of FTX. However, there is more, and it is strange. According to an NBC News investigation, North Dimension also had a now-defunct and possibly fake website that purported to sell electronics. He did not mention any connection to SBF’s business, but did share a Berkeley, California, address with FTX US. Read more from NBC News.
– CNBC’s Sarah Min, Evelyn Cheng and Leslie Josephs contributed to this report.
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