5 things to know before the stock market opens Tuesday

5 things to know before the stock market opens Tuesday

1. Wall Street set to dip ahead of key inflation data, Fed meeting

Stocks were up in morning trading on Monday with investors looking at retail sales and earnings results.

(Photo by Spencer Platt/Getty Images)

U.S. stock futures fell slightly Tuesday, indicating a second straight day of weakness after last week’s stellar performance.

Tech stocks were under pressure in the premarket, one day after leading the Nasdaq lower by 1.4%. The index finished 4% away from its Nov. 19 record close.The S&P 500, which closed at a record Friday, lost nearly 1% to start the new week.The Dow also fell close to 1% on Monday, pushing the 30-stock average more than 2% away from its Nov. 8 record close.

On the first day of the Federal Reserve‘s final, scheduled two-day meeting of the year, the government is expected to report another hot inflation report at 8:30 a.m. ET. November producer prices are seen soaring 9.2% from a year ago after October’s year-over-year rise of 8.6%.

2. CNBC survey: Fed will halt asset purchases by March, hike rates in June

Investors remained cautious about how the Covid omicron variant could affect the economy and what the Federal Reserve might announce Wednesday. The Fed will double the pace of its taper to $30 billion at its December meeting, which would roughly end the $120 billion in monthly asset purchases by March, according to the latest CNBC Fed Survey. The central bank will then hike rates three times in each of the next two years, starting in June 2022, according to the survey’s 31 respondents, who include economists, Wall Street strategists and money managers.

3. Two studies reveal Pfizer Covid pill, vaccine effective against omicron

Pfizer said Tuesday that final analysis of its antiviral Covid pill still showed near 90% efficacy in preventing hospitalizations and deaths in high-risk patients. Recent lab data also suggested the drug retains effectiveness against omicron. Nobody in the trial who received the Pfizer treatment died. In results of a large-scale study in South Africa released Tuesday, Pfizer’s two-shot Covid vaccine provided 70% protection against hospitalization from the new variant. The study has been conducted in the weeks since omicron was first announced in November by scientists in South Africa and Botswana.

4. Senate to vote on debt ceiling as Manchin holds out on Biden spending

The Senate is expected to vote Tuesday to raise the federal government’s $28.9 trillion debt ceiling, avoiding the risk of an default later this month. Senate Republicans wanted to link the borrowing limit hike to President Joe Biden‘s proposed $1.75 trillion Build Back Better domestic spending bill, a measure they oppose.

Democratic Sen. Joe Manchin has signaled he’s still not ready to back his party’s Build Back Better plan. The West Virginia lawmaker spoke to Biden on Monday, saying only that the president and he are “talking about different iterations” and that “anything’s possible” when asked if they could reach a deal by Christmas.

5. Stocks on the move: GameStop, AMC, Apple, Tesla, Ford and MGM

Meme stocks GameStop and AMC Entertainment were under pressure, again. GameStop fell nearly 14% to $136.88 on Tuesday, its lowest close since March. AMC dropped 15% to $23.24, its lowest close since late May.Apple rose modestly in the premarket, one day after it came close to becoming a $3 trillion company, before shares closed down 2%.Tesla — up around 35% in 2021 — fell 1% early Tuesday after CEO Elon Musk sold another $906.5 million worth of shares.Ford dropped 1%, hit by plans from Toyota to invest $35 billion into battery-powered EVs, an area that Ford wants to establish itself as a leader.MGM Resorts dipped, the morning after saying it would sell the operations of the Mirage hotel and casino in Las Vegas to Hard Rock for more than $1 billion in cash.

— Reuters and The Associated Press contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.

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