1. – Stock Futures Trade Higher
Stock futures were higher on Tuesday, getting a lift from the correction in Chinese economic data and waiting for the Federal Reserve’s policy meeting as Wall Street.
Dow Jones Industrial Average-linked contracts gained 172 points, S&P 500 futures rose 22 points and Nasdaq futures gained 104 points.
The stock closed broadly higher on Tuesday after several large corporate deals affected investor sentiment.
The Dow rose 327 points or 1.18% to 27,993, the S&P 500 rose 1.27% and the Nasdaq bounced 1.87%.
Nvidia (NVDA) – Get Report Chip designer announces $ 40 billion acquisition of Arm Holdings, while Gilead Sciences (Make gold) – Get Report It was buying Immunomedics (IMMU) – Get Report For $ 21 billion.
Oracle (Orcl) – Get Report Enterprise software giant beat Microsoft after shares (Msft) – Get Report Popular video-sharing app, to become Tickcock’s “trusted technology provider”.
“Wall Street has recovered some of its mojo,” Mizo Bank said in a report. “However, the question is whether we are dealing with optimism or just optimism about the deals.”
2. – Fed meeting begins, FedEx reports earnings
Tuesday’s economic calendar in the US includes the Empire State Manufacturing Index for September, at 8:30 am ET, import and export prices, at 8:30 am, and industrial production for August at 9:15 am.
The Federal Reserve begins a two-day meeting on Tuesday, with interest rates expected to be decided on Wednesday afternoon. The central bank is expected to hold rates close to zero and confirm its new, more tense stance on inflation.
FedEx is expected to report earnings on Tuesday (FDX) – Get Report, Adobe (ADBE) – Get Report And cracker barrel (CBRL) – Get Report.
3. – Apple’s ‘Time Fly’ Event – What to Expect
Apple (AAPL) – Get Report The “Time Flies” program is scheduled for Tuesday and will reportedly focus on hardware, but not the new iPhone from the tech giant.
All of Apple’s virtual showcases, which are open to the public, are expected to unveil another iPhone later in the fall.
The “time flies” phenomenon is a reference to Apple Watch, according to Bloomberg. Apple is preparing new low-end and high-end watches, as well as a new iPad Air, all of which will launch this fall. The company hopes to launch iOS14, watchOS 7, tvOS 14 and macOS Big Sur in the coming weeks.
Apple Maven Daniel Martins said, “The lack of news on Apple’s 5G-capable smartphone … could be a bearish development for a stock that has recently lost momentum.” “Otherwise, it is certain that the Apple Watch Series 6 will be unveiled with at least one new iPad model. I would be pleasantly surprised to hear news of the company’s speculated Apple One.”
Will there be an iPhone 12?
4. – SEC to investigate Nicola for short-seller fraud claims
The Securities and Exchange Commission is investigating Nicola (NKLA) – Get Report Bloomberg reported in the report that short-seller Hindenburg Research to assess allegations that the manufacturer of electric trucks had cheated investors about its business prospects.
Last week’s report by Hindenburg Research said it collected data from phone calls, text messages and emails, making dozens of false statements from Trevor Milton, the founder and CEO of Nicola, which raised the company’s share price Decreased rapidly. Hindenburg accused Nicola of being “a complex fraud built on dozens of lies”.
Nicola said in a response to the Hindenburg Research Report on Monday, “the opportunistic timing of its publication soon after the announcement of Nicola’s partnership by General Motors” (GM) – Get Report And the resulting positive share price response was designed to provide a misconception to investors and to manipulate the market negatively to financially benefit short-sellers, including Hindenburg. “
Nicola said it contacted Monday and told the SEC about its concerns over the Hindenburg report.
The SEC, Bloomberg reported, will investigate Hindenburg’s claims to determine if Nicola may have violated securities laws. Bloomberg said the regulatory review is preliminary and cannot lead to allegations of wrongdoing.
Nicola shares fell more than 11% on Monday, but declined 5.85% to $ 33.70 in Tuesday trading.
5. – Citigroup to resume job cuts
Citigroup (C) – Get Report The job cuts will begin this week, joining banking rivals to end beforehand to prevent layoffs during the coronovirus epidemic.
The bank said the cuts would affect less than 1% of its global workforce. With recent recruitment, overall headcount probably won’t show any decline, Citigroup said.
“The decision to eliminate the same collaborative role is very difficult, especially during these challenging times,” Citigroup said in a statement. “We will do our best to support each individual, including the ability to apply for open roles in other parts of the firm and provide serious packages.”
Separately, the bank hopes to receive reprimand from federal regulators for failing to improve its risk-management systems, including continuing deficiencies in its infrastructure and control functions, people familiar with the matter told Bloomberg.
Bloomberg said the expected reprimand from the Office of the Comptroller of the Currency and the Federal Reserve ended CEO Michael Corbett’s announcement that he would step down next year.