Here are the top news, trends, and analysis investors need to start their trading day:
1. Stock futures fall as traders worry about the Fed potentially taking away stimulus
People walk past the New York Stock Exchange (NYSE) in New York City on August 10, 2021.
Spencer Platt | Getty Images
US stock futures fell Thursday on mounting concerns that this year’s suspension of the Federal Reserve’s stimulus measures could hamper economic recovery. Futures contracts pegged to the Dow Jones Industrial Average fell 253 points, or 0.7%. S&P 500 futures fell 0.6% and Nasdaq 100 futures fell 0.5%. In the minutes of the July meeting published on Wednesday, the Fed announced that the central bank is ready to reduce its asset purchases before the end of the year. These purchases began last year to help the economy recover from the pandemic-induced recession. Economic activity has recovered in large part thanks to these measures. However, traders fear the economy could take another blow as Covid-19 cases spike due to the highly contagious Delta variant.
2. Robinhood stocks fall after app warned of trading slowdown
Vlad Tenev, CEO and Co-Founder of Robinhood Markets, Inc., appears on a screen during his company’s initial public offering on the Nasdaq Market location in Times Square in New York City, United States, on July 29, 2021.
Brendan McDermid | Reuters
Robinhood’s first quarterly report since converting to a publicly traded company showed that revenue for the trading app more than doubled year-over-year to $ 565 million. However, the stock fell about 11% after the company warned that a slowdown in trading activity could hurt earnings for the current quarter. “We expect seasonal headwinds and lower trading activity across the industry to result in lower revenues,” Robinhood said in its earnings report on Wednesday.
3. Wells Fargo plans to end personal credit lines
A man walks past a Wells Fargo Bank branch on a rainy Washington morning.
Gary Cameron | Reuters
Wells Fargo decided to keep its personal lines of credit available to reverse a decision that drew customer ire. The bank will keep the credit lines free for customers who want to use them actively or reactivate old ones, said a Wells spokeswoman. CNBC reported last month that the bank had notified customers that revolving lines of credit would be closed after a product review. The decision has also been criticized by Democratic Senator Elizabeth Warren, who has criticized the banking industry, and Wells Fargo in particular.
4. The US cannot safely escort Americans to the airport in Kabul, says the Pentagon chief
Secretary of Defense Lloyd Austin testifies before the Senate Armed Forces Committee during his hearing as the next Secretary of Defense on January 19, 2021 in Washington, DC.
Swimming pool | Getty Images News | Getty Images
Defense Secretary Lloyd Austin admitted that the US cannot safely escort Americans to the airport in Kabul so they can flee Afghanistan. “I don’t have the ability to expand operations to Kabul right now,” Austin said. However, Austin vowed that the US will “evacuate anyone we can physically and possibly evacuate, and we will continue this process for as long as possible.” The US is relying on an agreement with the Taliban to guarantee Americans safe exit from Afghanistan.
5. The US requires nursing homes to have staff fully vaccinated
Karen Klink of Hermosa Beach visits her 86-year-old mother, Cynthia Tachner, at Silverado Beach Cities Memory Care in Redondo Beach on Monday March 8, 2021.
Sarah Reingewirtz | Los Angeles Daily News | Getty Images
A new measure introduced by President Joe Biden requires nursing home staff to be fully vaccinated against Covid. “If you work in a nursing home and care for people on Medicare or Medicaid, you also need to get vaccinated,” Biden said on Wednesday. These remarks came after an administrative official confirmed to NBC News that the government was holding back funding for nursing homes whose staff are not fully vaccinated. The announcement comes as Covid cases are increasing across the country, in large part due to the highly contagious Delta variant.
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