1. Dow set to snap back after five sessions of losses
A trader works on the floor at the New York Stock Exchange, August 27, 2021. Source: NYSE
The Dow Jones Industrial Average was set to open 200 points higher Monday, bouncing after five straight sessions of losses. S&P 500 and Nasdaq futures were also pointing to a broad-based rally as a recent resurgence of Covid cases due to the delta variant appears to moderating. All three stock benchmarks finished lower Friday, with the S&P 500 also down five sessions in a row. The Nasdaq logged its third consecutive negative session. For the week, the Dow and S&P 500 dropped almost 2.2% and 1.7%, respectively, their worst weeks since June. The Nasdaq posted its worst week since July, sliding 1.6%.
2. House Democrats reportedly ready to propose tax hikes
Samuel Corum | Getty Images News | Getty Images
House Democrats are expected to propose sweeping tax increases on U.S. companies, wealthy Americans and investors to help pay for their $3.5 trillion budget bill. The plan calls for a corporate tax hike rate to 26.5% from 21% and a 3% surtax on individual income above $5 million, according Reuters, citing two people familiar with the matter. Democrats are also considering raising the top capital gains tax rate to 28.8% from 23.8%. The House returns from its summer recess on Sept. 20. The Senate comes back Monday.
3. Pfizer’s Covid vaccine appears on track for younger kids
A vial of Pfizer-BioNTech Covid-19 vaccine is seen at a pop up vaccine clinic in the Arleta neighborhood of Los Angeles, California, August 23, 2021. Robyn Beck | AFP | Getty Images
U.S.-based Pfizer’s Covid vaccine, developed in conjunction with German partner BioNTech, could be authorized for use in kids 5-11 as soon as next month, according to two sources familiar with the situation who spoke to Reuters. Pfizer is expected to have enough study data by then to submit an application for emergency use to the FDA. The two-dose Pfizer shot is already on emergency use for adolescents 12-15 and full approval for people 16 and older.
4. Chinese regulators reportedly targets Ant Group’s Alipay
The Ant Group Co. headquarters in Hangzhou, China, on Wednesday, Jan. 20, 2021. Qilai Shen | Bloomberg | Getty Images
Hong Kong-listed shares of Alibaba dropped more than 4% overnight after a Financial Times report that Beijing wants to break up Ant Group’s Alipay and force the creation of a separate loans app. U.S. shares of Alibaba, Ant Group’s e-commerce affiliate, were also under pressure in Monday’s premarket. Chinese electric vehicle stocks also dropped after the industry minister said there are “too many” EV makers in China and that consolidation in the sector is needed. However, EV maker Xpeng’s shares steadied in U.S. premarket trading.
5. Disney plans to release rest of 2021 movies in theaters only
Simu Liu stars as Shang-Chi in Marvel’s “Shang-Chi and the Legend of the Ten Rings.” Disney