Jerome Powell in Jackson Hole, Wyoming
Jonathan Crosby | Reuters
Here is the key news investors need to start their trading day:
1st Fed meeting begins
The Federal Reserve’s Policy-Setting Committee begins its two-day meeting on Tuesday as the market waits to see whether the central bank will hike interest rates by three-quarters of a point or a full point. The announcement is scheduled for Wednesday. Stocks have generally been in sell-off mode since hotter-than-expected August inflation data arrived, leading to greater uncertainty about how long the Fed would hike rates to combat inflation. US stock markets, which were positive on Monday, should open lower on Tuesday morning.
2. Ford supply chain pain
Ford F-150 Lightning at the 2022 New York Auto Show.
Scott Mlyn | CNBC
Businesses are still grappling with supply chain issues, especially as costs continue to rise. Ford Motor said after Monday’s bell that it expects third-quarter supplier costs to be $1 billion, higher than expected. The company said supply issues have led to parts shortages that are affecting about 40,000 to 45,000 vehicles, particularly trucks and SUVs. These vehicles also tend to have higher profit margins. Ford said there will be more details when it reports earnings on Oct. 26. The company’s shares fell about 5% after hours.
3. Ukraine puts pressure on separatists
Ukrainian soldiers ride on an armored vehicle in Novostepanivka, Kharkiv region, on September 19, 2022.
Yasuyoshi Chiba | AFP | Getty Images
As Ukrainian forces ramp up their counter-offensive and retake occupied territory, separatist leaders allied with Russia in eastern Ukraine are pushing for quick coordination to break away and join Russia. The head of Donetsk region on Monday called on his fellow Luhansk separatist leader to work together to pass a referendum. Analysts say such a vote would be “incoherent” due to Ukraine’s reclaiming parts of these areas. Elsewhere, the UK said next year it will match or exceed the level of Ukrainian aid spending it is making this year. At the United Nations General Assembly this week, Prime Minister Liz Truss is expected to urge countries to end their energy dependency on Russia. Read live updates on the war here.
4. The FAA does not reduce the required flight time for pilots
A Republic Airways aircraft approaches the runway at Ronald Reagan Washington National Airport (DCA) April 2, 2022 in Arlington, Virginia.
Daniel Slim | AFP | Getty Images
The Federal Aviation Administration rejected a request by Republic Airways to halve the number of hours required to become a pilot. The regulations require a minimum of 1,500 flight hours for commercial pilots, with exceptions for certain types of military experience. Republic, which flies short-haul routes for United, Delta and American, sought to reduce the requirement to 750 hours after completing the airline’s training program. Airlines have blamed a pilot shortage for service cuts, particularly in smaller cities. The FAA said its decision was based on the “greater public interest in ensuring and maintaining the level of safety” that current regulations provide. For its part, the Republic said the FAA “did not review and engage in its proposal as it deserves.”
5. A saver?
Viola Davis stars in Sony’s The Woman King.
The Woman King had what it takes to be a hit: an all-star cast including Oscar winner Viola Davis and Star Wars veteran John Boyega, Oscar hype and the promise of big, sizzling action scenes. And yet the $19 million opening weekend gross far exceeded the expectations of his studio, Sony, and some box office analysts. Now the film, which has been a strong draw for female and black audiences, has the potential to make big bucks for an extended period during an otherwise light calendar for films that have few blockbuster releases left this year, including Avatar: The Way of Water and Black Panther: Wakanda Forever. In another bonus for busy theaters, viewers were willing to shell out more to see The Woman King. According to EntTelligence data, about a third of the film’s viewers paid an additional $4.50 on average to see it on premium formats.
— CNBC’s Jesse Pound, Michael Wayland, Holly Ellyatt, Leslie Josephs and Sarah Whitten contributed to this report.
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