Here are the most important news, trends and analysis that investors need to start their trading day:
1. The Dow is set to rebound after Friday’s drop capped a tough week.
Traders work on the New York Stock Exchange (NYSE) on November 15, 2021 in New York.
Spencer Platt | Getty Images
Dow futures rallied but eased gains ahead of a shortened holiday week. The 30-share average fell 268 points, or 0.75%, on Friday on renewed fears of an increase in Covid cases, which limits a rough range for blue chips. The Dow fell nearly 1.4% over the week. The S&P 500 has dropped slightly since Friday’s record close, but is still slightly ahead of the week. The Nasdaq, backed by technology stocks, closed at an all-time high on Friday and gained more than 1.2% on the week.
- Moderna shares surged more than 2% in premarket Monday after US health officials received final approval for the Covid vaccination for all adults on Friday. Moderna’s shares had a rough month, dropping 20%. Pfizer and BioNTech have also received booster approval.
- Elon Musk said the Tesla Model S Plaid could be launched in China in early spring this year. When asked on Twitter about when the electric sedan will arrive in China, CEO Musk said “probably around March.” Tesla shares are up 2% in the premarket.
2. Biden may announce his appointment as head of the Fed this week.
Lael Brainard, Governor of the US Federal Reserve with Fed Governors Jerome Powell and Stanley Fisher.
Andrew Harrer | Bloomberg | Getty Images
A potentially market-changing event is expected this week: President Joe Biden’s appointment as head of the Federal Reserve System. Biden is expected to announce his choice in the coming days, with current chairman Jerome Powell and Fed Chairman Lael Brainard considered the most likely candidates. If Brainard wins, many expect the central bank to soften, which means it will take longer to tighten the extraordinary Covid-era policies, including raising interest rates. Powell, chosen by former President Donald Trump, has often been the target of Trump’s ire, who has been urged to maintain business-friendly monetary policy until a pandemic breaks out. The Fed moved quickly and did everything it could to prop up the economy in the early days of Covid.
3. The optimal period for promotions may come during the holiday week.
US markets will be closed Thursday for Thanksgiving. The stock market closes early at 1:00 pm ET Friday. If history is a guideline, stocks should rally well during the holiday week.
- “The last five trading days in November have traditionally been positive since 1950,” said Sam Stovall, CFRA’s chief investment strategist. “There is a two-thirds probability that the market will rise on the day before Thanksgiving, and a 57% chance the day after Thanksgiving, and a 71% chance that it will rise on Monday.”
- Apart from the possible announcement of Biden by the Fed, a number of economic reports are due out in the coming week. The most important release is Wednesday’s personal consumer spending data, which includes the inflation rate that the Fed most often monitors.
A protester lights a smoke bomb during a rally organized by the Austrian far-right Freedom Party FPOe against measures taken to contain the Covid pandemic at Maria Theresien Platz Square in Vienna, Austria, November 20, 2021.
JOE CLAMAR | AFP | Getty Images
Austria has entered his fourth national quarantine on Monday, as Covid cases raged across Europe. The softening announcement on Friday, which sparked widespread selling in global stock markets, also included a vaccine requirement starting February 1. The quarantine in Austria is expected to last 10 days, although officials said it could extend longer if necessary. Austria hopes to lift the measures on December 13, but may keep them in place for the unvaccinated. Tens of thousands protesters passed through Vienna on the Saturday before quarantine. Demonstrations against virus restrictions have also erupted in Switzerland, Croatia, Italy, Northern Ireland and the Netherlands.
5. Authentic Brands completes IPO to sell stake to private investors.
Jamie Salter, Chairman and CEO of Authentic Brands Group LLC.
Norm Betts | Bloomberg | Getty Images
Retail Conglomerate Authentic Brands Group plans to postpone its planned initial public offering and instead sell significant stakes in its business to private equity firm CVC Capital, hedge fund HPS Investment Partners and a number of existing stakeholders. The deal, announced Monday, estimated the value of the company behind retailers Forever 21, Aeropostale, Barneys New York, Brooks Brothers and Sports Illustrated magazine at $ 12.7 billion. Jamie Salter of Authentic Brands, who has signed a contract with the CEO for another five years, said the company plans to have an IPO in 2023 or 2024.
Bugfix: This article has been updated to reflect the Authentic Brands deal valued at $ 12.7 billion.
– The Associated Press contributed to this report. Follow all market activities like a pro CNBC Pro… Get the latest news on the pandemic with CNBC Coronavirus Coverage…