5 issues to know earlier than the inventory market opens Friday, September 20

Listed below are 5 key issues traders must know to start out the buying and selling day:

The Dow Jones Industrial Common closed above 42,000 for the primary time Thursday after a 500-point rally. The S&P 500 likewise notched a brand new document, rising 1.7% to shut above 5,700. The Nasdaq Composite gained 2.5%. All three main indexes are on tempo for successful weeks: The Dow and the S&P are every up about 1.5% since Monday, and the Nasdaq is up nearly 1.9%. Observe dwell market updates.

Nike is simply getting rid of its CEO. John Donahoe is leaving his submit on the sneaker big subsequent month, to get replaced by Elliott Hill. Donahoe has been Nike’s prime govt since January 2020 and has been overseeing a broad restructuring effort after Nike shifted its technique to promote on to customers. He’ll retire from his place on Oct. 13 and stay as an advisor by way of the tip of January. Hill was most just lately president of shopper and market at Nike earlier than retiring in 2020.

Residence gross sales disenchanted once more in August, falling 2.5% from July ranges and 4.2% from a yr in the past. That readout from the Nationwide Affiliation of Realtors got here in barely beneath what analysts anticipated. However it will not be all dangerous information. The report is predicated on closed contracts on beforehand owned house gross sales, which means the dotted strains have been probably signed in late June and July,  when mortgage charges had began to return down however weren’t but as little as they’re in the present day. “Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months,” mentioned Lawrence Yun, NAR’s chief economist. 

The UAW is as soon as once more eyeing the picket line. Union management is threatening work stoppages at Ford and Stellantis, a yr after historic strikes throughout nationwide contract negotiations. This time it is native contracts on the desk, because the UAW takes purpose at “job security, wage parity for Skilled Trades, as well as work rules.” The union has set a strike deadline at a Ford plant for 11:59 p.m. on Sept. 25, and it is introduced strike authorization votes at a number of native unions protecting U.S. Stellantis vegetation.

13 letters. 5 syllables. One new buzzword. Federal Reserve Chair Jerome Powell is all about recalibration today. He used the time period, or some variation, no fewer than eight instances throughout this week’s information convention following the central financial institution’s first price lower in 4 years. “It really allows him to push this narrative that this easing cycle is not about us being in recession, it is about extending the economic expansion,” mentioned Tom Porcelli, chief U.S. economist at PGIM Fastened Earnings. “I think it’s a really powerful idea. It’s something we had been hoping that he would do.”

– CNBC’s Hakyung Kim, Brian Evans, Gabrielle Fonrouge, Diana Olick, Michael Wayland and Jeff Cox contributed to this report.