During weeks leading up to September’s historically volatile trading, Jim Cramer warned to anticipate and prepare for some of the worst trading of the year. That time has finally arrived with stocks opening sharply lower to start the trading week.
The Dow Jones Industrial Average fell 559.09 points, the Nasdaq Composite fell 288.10 points and the S&P 500 fell 71.51 points.
Jim Cramer and senior analyst Jeff Marks of Action Alerts PLUS discussed the market sell-off, Evergrande, debt ceiling talks, the upcoming meeting of the Federal Reserve, Pfizer and much more.
Watch the full interview with TheStreet Live at 10:00 a.m. ET in the video above:
What is Evergrande and why should you care?
China’s second-largest real estate developer, Evergrande, is facing a liquidity crunch that may leave it unable to meet its bond obligations and push it ever closer to damaging bankruptcy and the sale of hundreds of commercial properties. With more than $310 billion in debt, the potential impact extends beyond Evergrande and even China, with banks, suppliers, homebuyers and investors among those at risk.
China’s Evergrande shares hit a new 11-year low in Hong Kong’s trading day to close at HK$2.28 each, extending their six-month slump to about 85%, TheStreet’s Martin Baccardax reported.
Fed Watch continues
Amid lingering inflation concerns, looming debt ceiling talks on Capitol Hill and an ethical review by the central bank itself, the Federal Reserve will begin its two-day meeting in September on Tuesday with a decision expected Wednesday.
While the central bank is not expected to raise interest rates, plans to phase out asset purchases will be closely monitored.
real moneyFed resident expert Tom Graff gave a preview what probably dominates the mind of Fed Chair Jerome Powell?:
“Powell is trying to give the Fed some breathing room to make sure inflation really holds up, and that’s probably the right thing to do. Walking too early is probably more damaging than waiting a little too long. But if the trends we’re seeing now continue for the next few months, Powell will not be able to continue using this excuse,” Graff wrote.
Pfizer says vaccine is safe for children ages 5 to 11
Pfizer and BioNTech (BNTX) – Get BioNTech SE Sponsored ADR Report said late-stage study with young children showed a “favorable safety profile and robust neutralizing antibody responses.”
The children studied received about a third of the dose given to older children and young adults in similar tests.
“These research findings provide a strong basis for applying for authorization of our vaccine for children ages 5 to 11, and we plan to urgently submit them to the FDA and other regulators,” said Pfizer CEO Albert Bourla in a statement.
Hear what Jim Cramer only tells his members Action Alerts PLUS investment club in Monday’s Daily Rundown.