5 things to know before the stock market opens on Tuesday, September 20

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Jerome Powell in Jackson Hole, Wyoming

Jonathan Crosby | Reuters

Here are the most important information investors need to start their trading day:

1. The Fed meeting kicks off

The Federal Reserve’s policy-setting committee is set to begin its two-day meeting on Tuesday, as the market waits to see whether the central bank raises its benchmark rate by three-quarters of a point or a full point. The announcement is set for Wednesday. Stocks have generally been in sell mode since August inflation data turned warmer than expected, prompting more uncertainty about how long the Fed would continue to hike rates to fight the downturn. price increases. US stock markets, after posting a positive Monday, were expected to open lower on Tuesday morning.

2. Ford’s supply chain pain

Ford F-150 Lightning at the 2022 New York Auto Show.

Scott Mlyn | CNBC

Businesses still face supply chain challenges, especially as costs keep rising. Ford Motor said after the bell on Monday it expects supplier costs to be $1 billion higher than expected in the third quarter. The company said supply issues have led to parts shortages that affect about 40,000 to 45,000 vehicles, particularly trucks and SUVs. These vehicles also generally have higher profit margins. Ford said it would have more details when it releases its results Oct. 26. Shares of the company fell about 5% in off-hours trading.

3. Ukraine pressures separatists

Ukrainian soldiers board an armored vehicle in Novostepanivka, Kharkiv region, September 19, 2022.

Yasuyoshi Chiba | AFP | Getty Images

As Ukrainian forces continue their counteroffensive and retake occupied territory, Russian-aligned separatist leaders in eastern Ukraine are pushing for early votes to break away and join Russia. The head of the Donetsk region on Monday called on his fellow separatist leader in Luhansk to work together to push through a referendum. Analysts say such a vote would be “inconsistent” due to Ukraine taking over parts of these areas. Elsewhere, the UK has said next year it will meet or exceed the amount of aid spending to Ukraine it is making this year. At the United Nations General Assembly this week, Prime Minister Liz Truss is expected to call on countries to stop relying on Russia for energy. Read live updates on the war here.

4. The FAA will not reduce required flight time for pilots

A Republic Airways plane approaches the runway at Ronald Reagan Washington National Airport (DCA) in Arlington, Virginia on April 2, 2022.

Daniel Thin | AFP | Getty Images

The Federal Aviation Administration has rejected a request from Republic Airways to halve the number of hours required to become a pilot. Regulations require at least 1,500 flight hours for commercial pilots, with exceptions for certain types of military experience. Republic, which provides short routes for United, Delta and American, sought to reduce the requirement to 750 hours upon completion of the carrier’s training program. Airlines have blamed the pilot shortage on service cuts, especially in smaller towns. The FAA said its decision was rooted in “the broader public interest to provide and maintain the level of safety” provided by the current rules. Republic, for its part, said the FAA failed to give its proposal “the consideration and commitment it deserves.”

5. A box office saviour?

Viola Davis stars in Sony’s “The Woman King.”

sony

“The Woman King” had the makings of a hit: a stellar cast led by Oscar-winning actress Viola Davis and Star Wars veteran John Boyega, Oscar buzz, and the promise of big, splashy action scenes. And yet, its $19 million opening weekend gross easily exceeded the expectations of its studio, Sony, and some box office analysts. Now the film, which had a strong appeal to female and black audiences, has the potential to rack up big bucks over an extended period during an otherwise light schedule for films, which only have a few releases left. blockbuster style this year. , including “Avatar: The Way of the Water” and “Black Panther: Wakanda Forever”. In another bonus for theaters short on business, audiences were willing to shell out more money to watch “The Woman King.” According to data from EntTelligence, about a third of the film’s viewers paid an average of $4.50 extra to see it in premium formats.

CNBC’s Jesse Pound, Michael Wayland, Holly Ellyatt, Leslie Josephs and Sarah Whitten contributed to this report.

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