HomeBusiness5 things to know before the stock market opens Monday, September 12

5 things to know before the stock market opens Monday, September 12

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 9, 2022.

Brendan Mcdermid | Reuters

Here are the most important news items that investors need to start their trading day:

1. Futures look strong

U.S. stock markets were primed to open higher Monday morning, as investors sought momentum from last week’s gains. All three major indexes had been mired in a three-week losing streak as markets grappled with the reality of yet another big rate hike coming from the Federal Reserve. The central bank’s policy-setting committee is expected to raise its benchmark rate by three-quarters of a point next week, even as inflation has shown signs of cooling off somewhat. Investors will get the latest read on inflation Tuesday, when the government is scheduled to report August’s consumer price index.

2. Ukraine strikes back

Service members of the State Security Service of Ukraine pose for a picture in the recently liberated town of Kupiansk in the Kharkiv region of Ukraine in this handout picture released Sept. 10, 2022.

Press Service of the State Security Service of Ukraine | Via Reuters

3. Chapek casts a spell at D23

Bob Chapek, Chief Executive Officer of Disney, speaks at the 2022 Disney Legends Awards during Disney’s D23 Expo in Anaheim, California, September 9, 2022.

Mario Anzuoni | Reuters

Disney CEO Bob Chapek went on a charm offensive over the weekend at the D23 Expo, sending positive messages to fans, employees and investors alike. It appeared to work, too, at least for one big-time activist investor. Third Point CEO Dan Loeb had been pushing the entertainment and media giant to spin off its ESPN operations, but he backed off on this point with a Sunday morning tweet. “We have a better understanding of @espn’s potential as a standalone business and another vertical for $DIS to reach a global audience to generate ad and subscriber revenues,” he said. Chapek had told Variety that Disney has “a vision” for where ESPN fits into the company’s plan for the next 100 years. “We’ve not shared that plan,” he added.

4. JPMorgan buys another fintech firm

JP Morgan CEO Jamie Dimon speaks at the Boston College Chief Executives Club luncheon in Boston, Massachusetts, U.S., November 23, 2021.

Brian Snyder | Reuters

In a move to counter fast-growing Stripe and Block, JPMorgan Chase has agreed to buy fintech payments startup Renovite, CNBC’s Hugh Son reports. Chase is already the world’s top merchant services provider. It processes about $9 trillion in transactions each day. But executives at the legacy bank, particularly CEO Jamie Dimon, have sounded the alarm about upstart competitors. Since late 2020, when the Covid pandemic was raging, JPMorgan has acquired at least five fintech startups in a tech spending spree that has been met with some criticism. The Renovite deal allows the bank to expand more quickly in global markets since it doesn’t require as much coding, Mike Blandina, JPMorgan’s global head of payments technology, told CNBC.

5. New chip restrictions

U.S. President Joe Biden attends the groundbreaking of the new Intel semiconductor manufacturing facility in New Albany, Ohio, September 9, 2022.

Joshua Roberts | Reuters

The Biden administration is set to unveil next month a fresh set of restrictions on U.S. semiconductor shipments to China, Reuters reported, citing multiple people familiar with the matter. The limits will focus on chips used for artificial intelligence, as well as tools for making semiconductors. KLALam Research and Applied Materials were notified of the coming changes in letters earlier this year, and the companies acknowledged the communication. Reuters also reported that some of its sources for the article said the administration could also unveil additional actions against China, as President Joe Biden pushes to make the United States more competitive with its rival.

— CNBC’s Carmen Reinicke, Holly Ellyatt, Jeff Cox and Hugh Son contributed to this report.

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