Here are the most important news, trends and analysis that investors need to start their trading day:
- Dow set to snap back after five sessions of losses
- House Democrats reportedly ready to propose tax hikes
- Pfizer's Covid vaccine appears on track for younger kids
- Chinese regulators reportedly targets Ant Group's Alipay
- Disney plans to release rest of 2021 movies in theaters only
1. Dow set to snap back after five sessions of losses
The Dow Jones Industrial Average was set to open 200 points higher Monday, bouncing after five straight sessions of losses. S&P 500 and Nasdaq futures were also pointing to a broad-based rally as a recent resurgence of Covid cases due to the delta variant appears to moderating. All three stock benchmarks finished lower Friday, with the S&P 500 also down five sessions in a row. The Nasdaq logged its third consecutive negative session. For the week, the Dow and S&P 500 dropped almost 2.2% and 1.7%, respectively, their worst weeks since June. The Nasdaq posted its worst week since July, sliding 1.6%.
2. House Democrats reportedly ready to propose tax hikes
House Democrats are expected to propose sweeping tax increases on U.S. companies, wealthy Americans and investors to help pay for their $3.5 trillion budget bill. The plan calls for a corporate tax hike rate to 26.5% from 21% and a 3% surtax on individual income above $5 million, according Reuters, citing two people familiar with the matter. Democrats are also considering raising the top capital gains tax rate to 28.8% from 23.8%. The House returns from its summer recess on Sept. 20. The Senate comes back Monday.
3. Pfizer's Covid vaccine appears on track for younger kids
U.S.-based Pfizer's Covid vaccine, developed in conjunction with German partner BioNTech, could be authorized for use in kids 5-11 as soon as next month, according to two sources familiar with the situation who spoke to Reuters. Pfizer is expected to have enough study data by then to submit an application for emergency use to the FDA. The two-dose Pfizer shot is already on emergency use for adolescents 12-15 and full approval for people 16 and older.
4. Chinese regulators reportedly targets Ant Group's Alipay
Hong Kong-listed shares of Alibaba dropped more than 4% overnight after a Financial Times report that Beijing wants to break up Ant Group's Alipay and force the creation of a separate loans app. U.S. shares of Alibaba, Ant Group's e-commerce affiliate, were also under pressure in Monday's premarket. Chinese electric vehicle stocks also dropped after the industry minister said there are "too many" EV makers in China and that consolidation in the sector is needed. However, EV maker Xpeng's shares steadied in U.S. premarket trading.
5. Disney plans to release rest of 2021 movies in theaters only
Disney will show the remainder of its slate of movies this year exclusively in theaters, rather than making them simultaneously available on its Disney+ streaming service. Disney's "Shang-Chi And The Legend Of The 10 Rings," only in theaters, topped the weekend box office once again following its record Labor Day weekend debut. "Shang-Chi," in the Marvel Cinematic Universe, has grossed nearly $250 million globally, and it doesn't even have a release date in China yet.