Here are five things you must know for Monday, October 4:
1. -- Stocks Futures Slip Lower as Growth Headwinds Mount
U.S. equity futures edged lower Monday, while Treasury bond yields retreated below the 1.5% mark, as investors remained cautious heading in to the start of the week amid a series of headwinds to global growth that could test the Federal Reserve's policy stance in the months ahead.
China's regulatory crackdown, the ongoing crisis linked to indebted property developer Evergrande and a rolling power crunch, which has lead to a spike in energy costs around the world, are both testing investors' appetite for risk while boosting inflation forecasts heading into the final months of the year.
Those pressures, alongside myriad warnings from U.S. companies that supply chain disruptions, elevated shipping costs and notably higher wages will eat into near-term profit margins, are taking the steam out of major markets around the world.
European stocks, in fact, are trading 5% south of their August record highs, extending declines Monday from their worst week since February, while stocks in Asia are struggling to find momentum amid the week-long Golden holiday closures in China.
On Wall Street, futures contracts tied to the Dow Jones Industrial Average are indicating a 100 point opening bell dip to kick-off the week, while thee broader S&P 500 is priced for a 15 point move to the downside . Nasdaq Composite futures, meanwhile, are set for a 75 point pullback even as benchmark 10-year note yields ease to 1.491% in early New York trading as investors look to a crucial September jobs report on Friday.
2. -- President Biden To Urge Path Through Senate Debt Ceiling Deadlock
President Joe Biden will urge Congressional lawmakers to find a way through its procedural malaise and pass an extension to the $28.4 trillion debt ceiling as the U.S. moves closer to its first-ever bond default.
Treasury Secretary Janet Yellen told both Houses of Congress last week that the government will effectively run out of money on October 18 if the debt ceiling isn't lifted, and Senate Leader Chuck Schumer is likely to attempt another vote Monday that would allow for further, government-mandated borrowing.
Opposition from Republican Senator Mitch McConnell -- who has already blocked two attempts to raise the debt ceiling last week -- remains assured, leaving Democrats with only a reconciliation option that would likely take at least two weeks, pushing the country up against Yellen's estimated October 18 deadline.
3. -- Facebook Whistleblower Says Company Puts Profits Over User Protections
Facebook (FB) - Get Facebook, Inc. Class A Report was accused of putting profits over the impact of hate speech Sunday by a former employee that plans to testify before Senate lawmakers regarding the social media group's influence on children later this week.
Frances Haugen, a former product manager who revealed herself as the whistleblower behind a series of documents leaked to the Wall Street Journal that exposed its role in contributing to a toxic online environment for teen girls, told CBS's '60 Minutes' that Facebook has "over and over again chose to optimize for its own interests like making more money."
Facebook denied the allegations, stating that "to suggest we encourage bad content and do nothing is just not true."
Facebook shares were marked 0.75% lower in pre-market trading, indicating an opening bell price of $340.47, a move that extends their one-month decline to around 11%.
4. -- Tesla Defies Critics With Record Q3 Deliveries
Tesla (TSLA) - Get Tesla Inc Report posted record third quarter deliveries Saturday that both topped Wall Street forecasts and defied investor concern that factory shutdowns in China, as well as a global shortage in semiconductors, would hamper its ability to shift cars over the three months ending in September.
Tesla delivered 241300 new cars over the three months ended in October, the company said in a Saturday statement, up 73.2% from last year and nearly 20% higher than the 201,250 reached in the second quarter. Analysts were looking for a total of around 230,000.
The third quarter total was comprised of 323,025 Model 3 and Model Y sedans, Tesla said, and 9,275 of its higher-priced Model S and Model X.
Tesla shares were marked 1.9% higher in pre-market trading to indicate an opening bell price of $789.30 each.
5. -- California Oil Spill a 'Potential Ecological Disaster'
California continues the clean-up effort linked to a potentially catastrophic oil spill off that has left more than 126,000 gallons of crude, and a thirteen square mile crude slick, off the coast of Los Angeles.
Huntington Beach Mayor Kim Carr called the spill, which was linked to a subsidiary of Houston-based Amplify Energy Corporation (AMPY) - Get Amplify Energy Corp. Report, a "potential ecological disaster" as Coast Guard authorities moved to clean-up the spill and state officials launched an urgent investigation into the cause of the spill.
Residents have been urged to stay away from the affected areas, which stretches from Huntington Beach to Dana Point along the southwest coast, although no impact has been reported as yet to the busy shipping port of Long Beach, just a few miles north of the spill's epicenter.
Amplify Energy shares plunged in pre-market trading Monday, falling more than 32% to indicate an opening bell price of $3.87 each.