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5 things to know before the market opens on Monday


Here are the most important news, trends and analysis investors need to start their trading day:

1. Dow futures collapse on omicron worries after tough week

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, United States, on Monday, December 13, 2021.

Michael Nagle | Bloomberg | Getty Images

U.S. equity futures fell more than 1% on Monday, ahead of a shortened vacation week filled with concerns about how quickly the omicron Covid variant is spreading around the world. Dow futures fell more than 400 points after the 30-stock average fell nearly 1.5% on Friday and fell nearly 1.7% for the week. The S&P 500 fell 1% on Friday and fell almost 2% on the week. The Nasdaq plunged 0.07% on Friday and fell about 3% for the week. Despite the recent weakness, all three benchmarks were still up for the year, with the Dow, S&P 500 and Nasdaq rising more than 15.5%, 23% and 17.7%, respectively, in 2021, at the close of Friday.

2. Moderna jumps after her booster appears to protect against omicron

Jakub Porzycki | NurPhoto | Getty Images

Stock futures associated larger losses early Monday after Moderna said a third dose of its Covid vaccine appeared to offer significant protection against omicron. The booster dose of 50 micrograms, which has already been authorized for use, can “increase the levels of neutralizing antibodies 37 times higher than the pre-increase levels.” Preliminary data on a 100 microgram dose, the same as the first two injections, showed an “approximately 83-fold” increase. Without a booster, the company’s vaccine was found to be much less effective against omicron. Moderna said she will continue to develop an omicron-specific booster. Stocks jumped 5% in the pre-market, a notable feature in Monday’s broader market decline.

3. Goldman cuts GDP forecast after Senator Manchin condemns Bill Biden

U.S. Senator Joe Manchin (D-WV) closes an elevator door after a Democratic political lunch at the United States Capitol in Washington, the United States, December 16, 2021.

Élisabeth Frantz | Reuters

The apparent failure of President Joe Biden’s “Build Back Better” plan means economic growth could be weaker than expected next year, according to Goldman Sachs. The plan hit a wall on Sunday when West Virginia Democratic Senator Joe Manchin said he would not support his party’s legislation, meaning the bill does not have enough votes to pass the Senate at 50-50. “While BBB in its current form seems unlikely, there’s still a good chance Congress will enact a much smaller set of tax proposals dealing with manufacturing incentives and supply chain issues,” hampered in part by Covid, Goldman’s note told customers.

4. Davos gathering of world leaders, billionaires and CEOs postponed

A logo sits on a window in the entrance hall of the Convention Center ahead of the World Economic Forum (WEF) in Davos, Switzerland on Monday, January 20, 2020.

Jason Alden | Bloomberg | Getty Images

The World Economic Forum said on Monday that due to concerns over Covid, it would postpone its annual in-person meeting in Davos, Switzerland, a gathering that brings together world leaders, billionaires and CEOs. The event was scheduled from January 17 to 21, with the aim of addressing the economic, environmental, political and social vulnerabilities exacerbated by the pandemic. “It is now scheduled for early summer,” WEF said in a statement. Organizers said a series of online sessions on “State of the World” would be held instead, “to focus on formulating solutions to the world’s most pressing challenges.” The WEF canceled a summer version of its meeting to be held in Singapore in August. A virtual conference was held earlier this year.

5. Elon Musk says he will pay over $ 11 billion in taxes this year

Maja Hitij | Getty Images News | Getty Images

Elon Musk faces a hefty tax bill this year, possibly the largest in US history. “For those wondering, I’ll pay over $ 11 billion in taxes this year,” the Tesla CEO tweeted on Monday. Musk has sold $ 14 billion of Tesla shares since early November, after asking his followers in a Twitter poll if he should sell 10% of his holdings. The response to this poll was a resounding “yes”. However, regardless of the vote, it’s likely Musk would have started selling anyway to pay the option taxes. Tesla shares fell about 2% in Monday’s pre-market. Although up more than 30% this year, Tesla has fallen 15% in the past month, falling below the market cap level of $ 1,000 billion.

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