A trader works on the trading floor of the New York Stock Exchange (NYSE) on December 14, 2022 in New York City, USA.
Andrew Kelly | Reuters
Here is the key news investors need to start their trading day:
1. Home stretch for stocks
Investors are hoping for a rally through the end of 2022 as stocks head for a bearish December and their worst year since 2008. News that China has effectively ended its zero-Covid policy (more on that below) in global markets, giving markets some momentum in US stock futures early Tuesday. Still, we could expect some volatility this week as trading volume is expected to be low due to the week between Christmas and New Year. Read live market updates here.
2. China plans to open up
Travelers check in at Hongqiao International Airport in Shanghai. December 2022, after China eased restrictions on domestic travel.
Qilai Shen | Bloomberg | Getty Images
The Chinese government is basically ending its zero-Covid policy. Come Jan. August, travelers arriving in mainland China no longer need to quarantine. On the same day, Chinese officials also plan to stop tracing close Covid contacts, halt high-risk zone designations and end measures that hamper imports. Chinese citizens will also soon be able to travel abroad, officials said. While these rapid changes have lifted optimism in markets, including oil trading, China is facing a surge in infections that is straining the country’s healthcare system.
3. Blizzard’s Deadly Consequences
A loader clears roadways in Hamburg, New York, on December 24, 2022. The Buffalo suburb and surrounding areas were hit hard by Winter Storm Elliott, with wind gusts in excess of 70 miles per hour battering homes and businesses throughout the Bank Holiday weekend. (Photo by John Normile/Getty Images)
John Normile | News from Getty Images | Getty Images
The winter storm, which battered much of the country, has left dozens dead, including at least 27 in the Buffalo area of western New York. Weather officials expected snow in Erie County, New York, to continue through most of Tuesday. While Buffalo and its environs are used to harsh winter conditions, officials dubbed this blizzard, with more than four feet of snow and arctic temperatures, “a generation” and “one for the ages.” The storm came as many Americans planned to travel for the Christmas weekend, but the weather resulted in the cancellation of several thousand flights (more on that below) and left many stranded without power.
4. Southwest slammed for cancellations
A Southwest Airlines plane taxis as a Delta Air Lines plane lands at Reagan National Airport in Arlington, Virginia, the United States, January 24, 2022.
Joshua Roberts | Reuters
The US Department of Transportation said it will investigate Southwest Airlines’ large rate of flight cancellations as the country grapples with the aftermath of a large, deadly snowstorm. southwest canceled 70% of its flights on Monday and warned it was on course to operate just a third of its flight schedule for a few more days as it worked to fix things. Southwest’s troubles came as other airlines began to stabilize. “USDOT is concerned about Southwest Airlines’ disproportionate and unacceptable rate of cancellations and delays and failure to provide adequate assistance to customers experiencing a cancellation or delay,” the transportation department said late Monday.
5. Mysterious company appears in FTX case
FTX founder Sam Bankman-Fried will leave the company following his arraignment in New York City on December 22, 2022.
Ed Jones | AFP | Getty Images
North Dimension, one of dozens of obscure companies within Sam Bankman-Fried’s collapsed crypto empire, is attracting more attention than it probably intended. According to an SEC filing last week, investors wanting to trade on FTX were asked to wire money to North Dimension to hide from customers that the money actually went to an account held by Alameda Research, FTX’s sister company , is controlled. However, there is more to it, and it’s strange. According to an investigation by NBC News, North Dimension also had a now-defunct and possibly fake website that purported to sell electronics. It didn’t mention ties to SBF’s businesses, but it did share an address in Berkeley, California with FTX US. Read more from NBC News.
– CNBC’s Sarah Min, Evelyn Cheng and Leslie Josephs contributed to this report.
— Follow broader market action like a pro CNBC Pro.