Here are the most important news, trends and analysis that investors need to start their trading day:
1. Dow, S&P 500 chose to jump after four sessions of losses
A trader works at the New York Stock Exchange (NYSE) in New York, USA, on Monday, August 23, 2021.
Michael Nagle | Bloomberg | Getty Images
The U.S. futures rebounded Friday after the Dow Jones Industrial Average and S&P 500 posted their fourth straight session of losses. The Nasdaq on Thursday saw its second day in a row. All three stock benchmarks have been tracked for negative weeks as concern persists on Wall Street over the impact of the Covid delta variant on the economic reopening. As of Thursday, the Dow was 2% away from last month’s record. The S&P 500 and the Nasdaq were down nearly 1% shy of their last record close earlier this month.
Investors have also questioned how headwinds for the economy and rising inflation could play into the Federal Reserve’s decision on when to begin declining Covid-era bond purchases. The government said Thursday that its August producer price index rose 0.7%, slightly more than estimated, after jumping 1% in July. The ex-food and energy core rate increased 0.6%, which corresponds to expectations. The August PPI rose 8.3% on an annual basis, the biggest advance on record.
2. The Covid mortgage bailout expires quickly, but unlikely foreclosure crisis
GeorgePeters | Getty Images
Extraordinarily high levels of household wealth, thanks to the recent rise in house prices, has put loans in a much better position now than they were at the start of the pandemic. The number of active mortgage abandonment plans, in which borrowers are allowed to delay their monthly payments for 18 months, it is down more than 5% from the previous week, according to a new report from analyst firm Black Knight. The decline was driven by the August deadlines. Falling from a peak of about 5 million entrepreneurs in May 2020, there are still 1,618 million in tolerance programs, or 3.1% of all mortgages in circulation.
3. Biden describes the plan to send Covid vaccines for millions
U.S. President Joe Biden makes remarks about plans to stop the spread of the Delta variant and increase Covid-19 vaccinations at the White House State Dining Room in Washington, DC on Sept. 9. September 2021.
Brendan Smialowski | AFP | Getty Images
An exasperated president Joe Biden outlined a broad plan Thursday to boost Covid vaccination rates in the United States, pressuring private employers to immunize its workforce and sending blows to federal employees, contractors and health care workers. The president moves were supported by the American Medical Association, the National Association of Manufacturers, and the Business Roundtable. However, the Republican National Committee he intends to proceed the Biden administration on mandate. Also Thursday, the Transportation Security Administration said it would double the fines for travelers who do not follow federal mask orders.
4. Xi from China, Biden has the second phone call from the new US administration
Chinese President Xi Jinping speaks during the presentation of the new Communist Party Politburo Standing Committee on October 25, 2017 in Beijing, China.
Lintao Zhang | Getty Images News | Getty Images
Biden is Chinese president On Friday, Xi Jinping spoke for the first time since February as tensions between the world’s two largest economies caught fire. It was his second call among executives since Biden took office in January, as tensions between the world’s two largest economies eased. A White House reading said that “the two leaders have discussed the responsibility of both nations to ensure that competition does not come into conflict.” Chinese state media say Xi spoke of conditional opportunities for cooperation between the two countries on climate, Covid prevention, economic recovery, and major international and regional issues.
5. Fed Chairman Kaplan, Rosengren sells individual stakes
Robert Kaplan in Jackson Hole, Wyoming
David A. Grogan | CNBC
Fed Chairmen Robert Kaplan and Eric Rosengren he said they will sell their individual shares while demands revolve around trading in 2020. Fed officials will sell all their shares by the end of the month. They can get the proceeds from passive investments. Kaplan and Rosengren have pledged not to exchange shares while serving as Fed chairmen. The announcements come after Fed officials faced a scrutiny around investment activity in a year when central bank shares were supporting financial markets during the Covid pandemic.
– The Associated Press and Reuters contributed to this report. Follow all the market action like a pro CNBC Pro. Get the latest news on the pandemic with CNBC coronavirus coverage.