5 Things to Know Before the Stock Market Opens on Tuesday, December 27th

TECHNOLOGY
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A trader works on the trading floor of the New York Stock Exchange (NYSE) in New York City, USA on December 14, 2022.

Andre Kelly | Reuters

Here are the most important news traders need to start their trading day:

1. Final stretch for inventories

Investors are hopeful of a rally through the end of 2022, although stocks are heading for a December slump and their worst year since 2008. for US equity futures on Tuesday. Still, we can expect some volatility this week as trading volumes are expected to be low due to this being the week between Christmas and New Years. Read live market updates here.

2. China plans to open up

Travelers check in at Shanghai Hongqiao International Airport on Dec 12, 2022 after China relaxed domestic travel restrictions.

Qilai Shen | Bloomberg | Getty Images

The Chinese government is, for all intents and purposes, ending its Covid-zero policy. As of January 8, travelers arriving in mainland China will no longer be required to be quarantined. By the same date, Chinese authorities also plan to stop tracing close Covid contacts, halt risk area designations, and end measures making imports difficult. Chinese nationals will also soon be able to travel abroad, officials said. While these rapid changes have boosted optimism in markets, including the oil trade, China is grappling with a rise in infections that is overwhelming the country’s health care system.

3. Blizzard’s Deadly Consequences

A loader opens roads on December 24, 2022 in Hamburg, New York. Suburb Buffalo and the surrounding area were hit hard by Winter Storm Elliott, with wind gusts in excess of 70 miles per hour hitting homes and businesses over the holiday weekend. (Photo by John Normile/Getty Images)

John Normile | Getty Images News | Getty Images

The winter storm that battered much of the country left dozens dead, including at least 27 in the Buffalo region of western New York. Weather officials expected the snow to continue for much of Tuesday in Erie County, New York. While Buffalo and its surrounding areas are accustomed to harsh winter conditions, officials have called this blizzard, with its four feet of snow and arctic temperatures, “generational” and “one for the ages.” The storm came as many Americans left to travel Christmas weekend, but the weather caused several thousand flights to be canceled (more on that below) and left many stranded without power.

4. Southwest criticized for cancellations

A Southwest Airlines aircraft taxis as a Delta Air Lines aircraft lands at Reagan National Airport in Arlington, Virginia, USA, on January 24, 2022.

Joshua Roberts | Reuters

The US Department of Transportation said it would look into Southwest Airlines’ high rate of flight cancellations as the country grapples with the aftermath of a massive and deadly blizzard. South-west canceled 70% of its flights on Monday and warned it was on track to operate just a third of its schedule for a few more days as it worked to patch things up. Southwest’s problems came as other airlines began to stabilize. “The USDOT is concerned about Southwest Airlines’ disproportionate and unacceptable rate of cancellations and delays, as well as its failure to adequately support customers who experience cancellations or delays,” the Department of Transportation said on Monday.

5. Mysterious company appears in the FTX case

FTX founder Sam Bankman-Fried leaves following his arraignment in New York City on December 22, 2022.

Ed Jones | AFP | Getty Images

North Dimension, one of dozens of obscure companies from the collapse of Sam Bankman-Fried’s crypto empire, is attracting more attention than it probably should. According to an SEC filing last week, investors wishing to trade on the FTX were instructed to transfer money to North Dimension in an alleged attempt to hide from clients that the money was actually going to an account controlled by Alameda Research, a company sister of FTX. There’s more to it though, and it’s weird. According to an NBC News investigation, North Dimension also had a defunct and possibly fake website purporting to sell electronics. It did not mention any connection to the SBF business, but it did share an address in Berkeley, California with FTX US. Read more from NBC News.

– CNBC’s Sarah Min, Evelyn Cheng, and Leslie Josephs contributed to this report.

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