Here are the most important news, trends and analysis investors need to start their trading day:
1. Dow is expected to rebound from Monday’s sharp drop
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, United States, on Monday, September 20, 2021.
Michael Nagle | Bloomberg | Getty Images
Dow futures rebounded 260 points on Tuesday, a day after the 30-stock average fell more than double amid Wall Street’s fall in September. The Dow Jones finished 614 points, or nearly 1.8%, down in its worst session since July. The Dow Jones fell 971 points to Monday’s low, which was nearly 5.7% below last month’s all-time high. Investor concerns included risks associated with this week’s Federal Reserve meeting, the high number of Covid cases in the United States, the debt ceiling in Washington and possible contagion in financial markets from the Chinese developer in Evergrande difficulty. The Nasdaq and S&P 500 had their worst days since May on Monday, falling 2.2% and 1.7% respectively. Both were also down more than 5% from their historic intraday highs at the start of the month.
2. Fed to get new housing data at the start of the meeting
New townhouses are under construction as supplies of building materials are in high demand in Tampa, Fla. On May 5, 2021.
Octavio Jones | Reuters
The Fed gets a reading of the housing market at 8:30 am ET as monetary policy makers begin their two-day meeting in September. Economists expect August housing starts to rise 1% after falling 7% in July. Building permits are expected to decline by 2.1% in August against an increase of 2.6% in July. Central bankers will put that data into the mix when they figure out when to start cutting back on their massive Covid-era bond purchases. Higher inflation, which Fed Chairman Jerome Powell considers temporary, will be weighed against a recovering economy. However, a big disappointment in job growth in August could keep the Fed at bay a little longer. Central bankers release their policy statement Wednesday, followed by a press conference from Powell.
3. Democrats combine debt ceiling and spend in one bill
House Speaker Nancy Pelosi, D-Calif., Hosts a press conference at the Capitol Visitor Center with House Democrats on accomplishments including the For The People Act and the agenda for the rest of the year, Friday July 30, 2021.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
Democratic leaders in Congress have said they will try to pass a bill that prevents the government from shutting down and suspends the US debt limit until the end of 2022. They are trying to avoid two possible crises simultaneously. Congress faces a September 30 deadline to fund the federal government. Treasury Secretary Janet Yellen told lawmakers the United States likely wouldn’t be able to pay its bills in October if lawmakers didn’t suspend or increase the debt ceiling. Senate Minority Leader Mitch McConnell, R-Ky., Tried to force Democrats to use their slim majority in the Senate and House to face the debt ceiling on their own.
4. Biden to address the UN about Covid, climate
US President Joe Biden meets with United Nations Secretary-General Antonio Guterres during the 76th session of the United Nations General Assembly in New York, September 20, 2021.
Kevin Lamarque | Reuters
President Joe Biden, in his first address to the United Nations General Assembly as the US chief executive, plans to call on allies to cooperate on challenges such as Covid and climate change. The speech is scheduled for mid-morning Tuesday. Eight months into his presidency, Biden has been out of step with his allies over the chaotic end of the US war in Afghanistan. He has faced differences over how to share coronavirus vaccines with the developing world and over travel restrictions in the event of a pandemic. Biden also finds himself in the middle of a row with France over a deal to sell nuclear submarines to Australia.
5. J&J reveals recall data; Uber raises its outlook for the third quarter
A vial of Janssen COVID-19 vaccine from Johnson & Johnson
Pacific press | LightRocket | Getty Images
Johnson & Johnson is among the moving stocks in Tuesday’s pre-market trading. J&J shares rose about 1% after the company said a booster of its Covid vaccine is 94% effective in the United States when given two months after the first dose. Six months after the first shot, a J&J booster seems to be potentially even more protective. Some 14.8 million people in America have received the company’s single-dose vaccine.
Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, Calif., September 26, 2019.
Philippe Pacheco | AFP via Getty Images
Shares of Uber rose 5% after the rideshare and food delivery company revised its outlook for its third quarter up. Uber said it now expects adjusted earnings before interest, taxes, depreciation and amortization to vary from a loss of $ 25 million to a profit of $ 25 million. Uber previously said it expected Adjusted EBITDA for the third quarter to be better than a loss of $ 100 million.
– The Associated Press contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest pandemic news with CNBC’s coronavirus coverage.