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5 Things To Know Before The Stock Exchange Opens On Friday, October 22nd

October 22, 2021
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Here are the most important news, trends and analysis that investors need to start their trading day:

1. Stock Futures Mixed After Record S&P 500 Close

Traders work at the site of the New York Stock Exchange (NYSE) in New York, USA on October 20, 2021.

Brendan McDermid | Reuters

US stock futures were mixed Friday, with tech stocks under pressure and 10-year Treasury yields trading at May highs above 1.69%. The S&P 500 index closed at a record high on Thursday and increased the number of profitable sessions to seven. The Nasdaq, which was also higher, has deviated about 1% from its record close on September 7. The Dow Jones Industrial Average closed lower for the first time in three sessions. However, the average of 30 shares still hasn’t hit the record high of mid-August. All three indicators showed stable growth over the week.

  • Dow Honeywell initially fell more than 3% in premarket Friday after below-expected third-quarter revenues. But most of those losses were in stocks.
  • American Express, another Dow stock, rose 1.5% premarket after it beat forecasts for quarterly earnings and revenue.

2. Intel Shares Fall Due to Lack of Revenue, Outlook Warning

Dow Shares Intel lost 10% in premarket Friday, the morning after the company reported lower-than-expected third-quarter revenue. The chipmaker also blamed the industry’s component shortage for shrinking its PC chip business by 2%. Intel has warned that its gross margin and free cash flow will decline to lower levels over the next 2-3 years as it invests in research and development and builds new chip factories.

3. Snap shares fell sharply after the online advertising downturn.

The Snapchat app on a smartphone is installed in St. Thomas, US Virgin Islands on Friday, January 29, 2021.

Gabby Jones | Bloomberg | Getty Images

Social media stocks plummet in premarket, led by plunge Snap dropped 20% on lost quarterly revenue after its ad business was disrupted by privacy changes made by Apple earlier this year. Snap also warned late Thursday that global supply chain disruptions and labor shortages are dampening “the short-term appetite to create additional consumer demand through advertising.” Facebook and Twitter shares fell 3% and 4%, respectively, as investors worried about the online advertising business.

4. CDC Cleans Moderna, J&J Boosters and Mix & Match

A person receives the Moderna Covid-19 vaccine at the American Bank Center in Corpus Christi, Texas, USA, on Thursday, February 11, 2021.

Forward Nakumura | Bloomberg | Getty Images

Centers for Disease Control and Prevention Thursday approved Covid-19 booster vaccines by Moderna and Johnson & Johnson. Moderna was approved for the elderly and at-risk adults six months after the second vaccine. This is in line with Pfizer’s booster approval last month. The CDC has approved a J&J booster for all 18 years of age and older who received their first vaccine at least two months ago. The agency also gave people the freedom to mix and match any of these three vaccines approved for use in the United States.

5. Biden believes that the increase in corporate tax is unlikely to affect costs.

President Joe Biden (right) greets attendees during a commercial break at CNN’s Town Hall at the Baltimore Center Stage in Baltimore, Maryland, October 21, 2021.

Nicholas Camm | AFP | Getty Images

The president Joe Biden said Thursday that he is close to a deal on basic infrastructure and social spending, with only a few issues still under discussion after weeks of intra-party bickering among fellow Democrats. Biden also said that corporate tax rates are unlikely to be raised on expense accounts. Instead, he said that a separate minimum corporate tax proposal could fund social programs. According to Biden, negotiations are now centered around four or five issues, declining to provide details.

– Reuters contributed to this report. Follow all market activities like a pro CNBC Pro… Get the latest news on the pandemic with CNBC Coronavirus Coverage…


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October 22, 2021
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