Here are the key news, trends, and analysis investors need to start their trading day:
1. S&P 500 brings winning streak to historically difficult September
A trader works on the New York Stock Exchange (NYSE) in Manhattan, New York City, USA, 19 August 2021.
Andrew Kelly | Reuters
U.S. stock futures started the new month higher on Wednesday after the S&P 500 posted seven straight monthly gains, the longest winning streak since a 10-month run that ended December 2017 in August. The Dow Jones Industrial Average and Nasdaq also fell slightly on Tuesday, but rose 1.2% and 4%, respectively, in August. Ahead of Wednesday’s open, the Dow was just over 0.7% off last month’s record high. The S&P 500 and Nasdaq were just before Monday’s record close. September can be dangerous for stocks as the month is historically lower than higher more often than not.
2. ADPs look at the monthly recruitment at US companies disappointed again
A woman walks past a “Now Hiring” sign outside a store in Arlington, Virginia on August 16, 2021.
Olivier Douliery | AFP | Getty Images
ADP said Wednesday that US companies only created 374,000 jobs in August, well below the estimate of 600,000. ADP’s look at private sector employment growth in July was also a big mistake. Those numbers weren’t a great barometer of what the government’s monthly employment data might be showing during Covid. Economists expect the Labor Department’s report on Friday to show 720,000 additional non-farm payrolls in August and a fall in the country’s unemployment rate to 5.2%. The economy created 943,000 new jobs in July, which was better than expected as the unemployment rate fell to 5.4%. The latest weekly list of initial jobless claims will be released on Thursday.
3. Oil prices rise ahead of OPEC + meeting as Gulf Coast assesses Ida damage
Broken power lines destroyed by Hurricane Ida are seen along a freeway near an oil refinery outside of LaPlace, Louisiana, on August 30, 2021.
Michael Robinson Chavez | The Washington Post | Getty Images
Oil prices rose modestly ahead of Wednesday’s OPEC + meeting. The Organization of Petroleum Exporting Countries and its Russia-led allies are expected to stick to their plan to add 400,000 barrels a day each month through December. US oil prices broke four months of gains in August and fell nearly 7.4% in their worst month since October. This is despite the 10.6% surge in the last week before Hurricane Ida, which hit the Gulf Coast on Sunday, temporarily halting oil production and refining operations. About 985,000 customers in Louisiana stayed in the dark early Wednesday as the region suffers from searing heat.
4. Biden meets with the Ukrainian President and defends the end of the war in Afghanistan
The President of Ukraine, Volodymyr Zelensky, will meet on 02.
Ukrainian Presidency | Anadolu Agency | Getty Images
President Joe Biden will unveil a comprehensive humanitarian and military aid package to Ukraine on Wednesday during a visit to the White House by Ukrainian President Volodymyr Zelenskyi. A now infamous phone call between Zelenskyi and Donald Trump in 2019 was a cornerstone of the former US president’s first impeachment trial.
United States President Joe Biden speaks in the State Dining Room of the White House in Washington DC to end the war in Afghanistan on August 31, 2021.
Brendan Smialowski | AFP | Getty Images
In an address to the nation on Tuesday afternoon, Biden defended his decision to end the US war in Afghanistan after nearly 20 years, saying the era of large-scale US military operations to rebuild other nations was over. The Taliban, ousted from power after the September 11, 2001 attacks, now control almost all of Afghanistan.
5. CDC chief urges unvaccinated Americans not to travel on Labor Day
Center for Disease Control and Prevention Director Rochelle Walensky listens during the Senate Committee on Health, Education, Labor and Pensions hearing on Capitol Hill in Washington, DC on July 20, 2021.
Stefani Reynolds | AFP | Getty Images
CDC director Dr. Rochelle Walensky advises unvaccinated Americans against traveling over Labor Day weekend as the US battles a surge in Covid hospital admissions caused by the spread of the highly contagious Delta variant. Walensky also recommended spending time outdoors with other vaccinated family members during the vacation Tuesday, and urged people to wear masks indoors. On Monday, the seven-day average of daily new Covid cases in the US rose 6% to nearly 160,000. Over the same period, new Covid deaths in the US rose an average of 29% from a week ago to 1,329.
– Associated Press and Reuters contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.