Here are five things you must know for Thursday, Sept. 24:
1. — Stock Futures Fall as Fed Says Economy Needs More Support
Stock futures were lower Thursday as the chances of further fiscal aid from Congress dwindled ahead of the presidential election in November.
Economists at Goldman Sachs cut their fourth-quarter growth forecasts for the U.S. to 3% from 6% and said “further fiscal support will likely have to wait until 2021.”
Contracts linked to the Dow Jones Industrial Average declined 21 points, S&P 500 futures fell 5 points and Nasdaq futures were down 71 points.
Stocks ended sharply lower Wednesday after Federal Reserve officials warned more fiscal stimulus was needed to rescue a struggling U.S. economy. The S&P 500 has fallen 7.5% so far in September.
“The Fed can only lend money, not spend money. Only Congress can provide funds to the still high number of unemployed workers, and (Fed Chairman Jerome) Powell seems to be more and more communicating a belief by the Fed that Congress is falling down on the job,” said C.J. MacDonald, client portfolio manager at GuideStone Capital Management.
“A new fiscal stimulus bill looks to be dead in the water. That fact, and an uncertain and contentious election season now at full boil, may cause volatility and downside in the financial markets to continue in the short-term,” MacDonald added.
2. — Powell’s Third Day of Testimony, Jobless Claims on Thursday’s Calendar
Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will testify on the Coronavirus, Aid, Relief and Economic Security (CARES) act at 10 a.m. ET Thursday before the Senate Banking Committee.
Powell, in the second of his three days of congressional testimony, said Wednesday a U.S. recovery would move along faster “if there is support coming both from Congress and from the Fed.
The economic calendar Thursday also includes weekly Jobless Claims at 8:30 a.m. and New Homes Sales for August at 10 a.m.
3. — Costco, Carnival and Rite Aid Report Earnings
Earnings reports are expected Thursday from Costco Wholesale , Carnival , Accenture , Rite Aid , Darden Restaurants , Carmax and Jabil .
4. — TikTok Owner Files to Stop Trump App Ban
ByteDance, TikTok’s Chinese owner, has asked a federal judge to stop the Trump administration from enforcing a ban that would remove the video-sharing app from U.S. app stores on Sept. 27.
The company filed for a temporary block on the ban Wednesday even as it continues to pursue approvals from the Trump administration for a sale of its U.S. operations to Oracle and Walmart , Bloomberg reported.
ByteDance’s request, Bloomberg noted, deploys many of the same arguments a group of WeChat users made to win a preliminary injunction last weekend against a similar ban.
ByteDance, meanwhile, has applied for a technology export license with authorities in Beijing.
The company filed the request after China tightened restrictions on the export of certain technologies, including those used in TikTok. A spokesman for Beijing’s commerce ministry acknowledged the filing Thursday, saying it’ll be assessed “in accordance with the relevant rules and procedures.”
5. — United and Pilots Union Agree to Delay Furloughs Until Oct. 30
United Airlines agreed to delay pilot furloughs until Oct. 30, while union members vote on a broader deal that would protect about 2,850 jobs for months longer, Reuters reported.
Pilots won’t be paid during October if that deal doesn’t pass, according to a memorandum of understanding between United and the Air Line Pilots Association union that was seen by Reuters.
The ALPA represents about 13,000 pilots.
“Our pilots are voting right now on a tentative agreement that, if approved, would avoid all pilot furloughs for at least nine months,” United spokesman Frank Benenati said. He said the airline continues to push for an extension of federal payroll support.
Unless they receive further aid, airlines have said they would furlough tens of thousands of workers beginning Oct. 1.
White House economic adviser Larry Kudlow said Wednesday the Trump administration was considering executive action to help airlines struggling with a severe drop in flying passengers during the coronavirus pandemic.
This article was originally published by TheStreet.
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