5 things to know before the stock market opens Monday
Here are the most important news, trends and analysis that investors need to start their trading day:
- 1 1. Wall Street set to start week lower as oil hits 7-year highs
- 2 2. Oil jumps to over $82 per barrel as global energy crisis persists
- 3 3. Major banks’ earnings lead third-quarter reporting this week
- 4 4. Yellen warns on debt ceiling as House gets set to vote on deal
- 5 5. Southwest cancels about 2,150 flights, blaming weather and staffing
Traders work on the floor of the New York Stock Exchange (NYSE) on October 04, 2021 in New York City.
Spencer Platt | Getty Images
U.S. oil prices, measured by West Texas Intermediate crude, surged 3.5% on Monday to more than $82 per barrel after rising nearly 4.6% last week. Gasoline prices at the pump were also at seven-year highs, around $3.27 per gallon, according to AAA. Crude prices extended multiweek gains as an energy crisis gripping major global economies showed no sign of easing. The energy crunch has been due to a pickup in business activity and restrained supplies from international producers. However, U.S. drillers were taking advantage of the increases, adding five new oil rigs last week, the fifth straight weekly increase.
A combination file photo shows Wells Fargo, Citibank, Morgan Stanley, JPMorgan Chase, Bank of America and Goldman Sachs.
A view of the U.S. Capitol during morning rush hour on Wednesday morning October 6, 2021 in Washington, DC.
Drew Angerer | Getty Images
Treasury Secretary Janet Yellen said Sunday there’s an “enormous amount at stake” after the Senate approved only a short-term extension of the debt ceiling, again setting up the potential for default in December if lawmakers are unable to make another deal. “A failure to raise the debt ceiling would probably cause a recession,” Yellen reiterated on the ABC program “This Week.” The House, which had been scheduled to be out this week, is set to return Tuesday to pass the measure. Senate GOP leader Mitch McConnell sent a warning Friday to President Joe Biden, saying Republicans “will not provide such assistance again.”
A Southwest Airlines Boeing 737 MAX 8 aircraft is pictured in front of United Airlines planes, including Boeing 737 MAX 9 models, at William P. Hobby Airport in Houston, Texas, March 18, 2019.
Loren Elliott | Reuters
Southwest Airlines canceled more than 1,800 flights this weekend, disrupting the travel plans of thousands of customers and stranding flight crews. The carrier blamed the meltdown on a combination of bad weather as well as shortages in air traffic controllers and its own staff. Other airlines canceled relatively few flights. Southwest, which did not comment on the disparity, has canceled 349 flights, 9% of its schedule, on Monday, according FlightAware. On Saturday, union officials said Southwest’s decision this week to join its rivals in requiring Covid vaccines for workers is contributing to distractions for aviators.