Here are five things you need to know for Tuesday, January 26:
1. – The stock futures incentive package may be deferred
Stock futures declined on Tuesday as market sentiment was affected by the possibility that a US coronavirus aid package could be delayed.
Dow Jones industrial average contracts fell 29 points, S&P 500 futures fell 9 points, and Nasdaq futures fell 46 points ahead of earnings reports from some of the largest technology companies.
Senate Majority Leader Chuck Schumer said Monday that an aid package is unlikely before mid-March. Then the federal unemployment benefits authorized by the last $ 900 billion package will expire.
President Joe Biden said he is open to negotiations on the proposed $ 1.9 trillion plan to send $ 1,400 to the majority of Americans and provide other support for the economy, including vaccine distribution funds.
A bipartisan group of senators has already expressed opposition to the size of Biden’s plan.
Meanwhile, the coronavirus pandemic has killed more than 421,000 in the United States, and concerns have grown about the country’s rugged release of vaccines. Biden said he anticipates that the vaccines will be available to anyone in the United States by spring, but to make that projection, vaccine manufacturers will have to suddenly increase production.
Stocks ended mixed on Monday, amid questions about whether the White House in Biden will be able to offer another round of incentives. However, the S&P 500 and Nasdaq managed to close at record highs.
2. – Tuesday’s calendar: Microsoft and AMD earnings, Federal Reserve meeting
Income reports are expected from Microsoft on Tuesday (MSFT) – Get the report, Advanced micro appliances (I HAVE D) – Get the report, Starbucks (SBUX) – Get the report, Verizon (VZ) – Get the report, Johnson & Johnson (JNJ) – Get the report, General Electric (YES) – Get the report, Lockheed Martin (LMT) – Get the report, American Express (AXP) – Get the report, 3M (MMM) – Get the report, Xilinx (XLNX) – Get the report, Raytheon Technologies (RTX) – Get the report and Texas Instruments (TXN) – Get the report.
Overview of electrical gains: Here’s what the diagrams say
Microsoft, Advanced Micro Devices and Starbucks are owned by Jim Cramer’s PLUS club member action alerts. Want to be alerted before Jim Cramer buys or sells the shares? Learn more now.
Tuesday’s U.S. economic calendar includes the first day of a two-day Federal Reserve meeting. The central bank does not expect to move interest rates and has signaled that it will keep them close to zero until 2023.
Mark Heppenstall, chief investment officer at Penn Mutual Asset Management, said the central bank is likely to reiterate its “extended monetary accommodation commitment” at the meeting.
“Uncertainty about the short-term evolution of the pandemic and signs of weakening labor markets suggest that recent discussions by Fed officials are still premature,” Heppenstall added, referring to when the Fed could begin reducing asset purchases.
The calendar also includes the Case-Shiller house price index for November at 9 a.m. ET and consumer confidence for January at 10 a.m.
3. – Leon Black will resign as CEO of Private-Equity Giant Apollo
Leon Black, founder and CEO of private equity giant Apollo Global Management (APO) – Get the report, will resign as chief executive after it was revealed he made higher-than-expected payments to Jeffrey Epstein, the embarrassed financier.
Black paid Epstein $ 158 million in fees for planning the trust and wealth tax over the five years to 2017, much more than was previously known, according to a report by law firm Dechert.
Dechert’s analysis found no evidence that Black was involved in the criminal activities of the late Epstein, who was indicted in 2019 for federal sexual trafficking charges involving underage girls. Epstein committed suicide in prison pending allegations of child sex.
Apollo also never detained Epstein for any service, the report concluded.
Black wrote in a letter to Apollo investors that he would step down as CEO of co-founder Marc Rowan on or before turning 70 on July 31, while retaining the role of president.
The Wall Street Journal was the first to report the contents of the report and the letter.
Shares of Apollo Global rose 3.86% on Monday to $ 47.65.
4. – BlackBerry shares are rising again
Blackberries (BB) – Get the report it grew by more than 17% in premarket trading on Tuesday, following a gain of more than 28% in the stock in the previous session as it received a boost from retailers and was heavily mentioned on online message boards such as Reddit.
BlackBerry, the security software and services company, said in a statement that it did not know the reasons for moving the stock.
BlackBerry shares rose 17.36% to $ 21.16 on Tuesday. So far, in 2021, the stock has gained 172%.
Analysts at RBC downgraded shares to lower performance than the industry, citing the valuation and saying there was no change in the company’s fundamental outlook. Analyst Paul Treiber kept his target price at $ 7.50.
BlackBerry has become a favorite on the Reddit message board, as has GameStop (GME) – Get the report and Express (EXPR) – Get the report.
What about GameStop Stock? Jim Cramer explains
5. – Apple Hardware Engineer moves to “New Project”
Apple (AAPL) – Get the report said its chief hardware engineer, Dan Riccio, is moving into a new project and will be replaced by John Ternus, currently vice president of hardware engineering.
Riccio has been with Apple since 1998 and has worked on most of the company’s major products over time, from the first iMac computers to the latest 5G phones.
Apple has not specified which project will lead Riccio. Recent speculation, however, has focused on the company’s efforts to develop state-of-the-art virtual reality headsets or augmented reality glasses.
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