Here are five things you need to know by Wednesday, January 6:
1. – Mixed-stock futures as Wall Street Democrats bet the Senate wins
Stock futures were mixed on Wednesday, while investors bet that Democrats could win the US Senate and that US-China tensions have risen again.
Rev. Democrat Raphael Warnock defeated Senator Kelly Loeffler in Georgia, winning one of two Senate rounds in the state. Victory puts the majority of the Senate at the disposal of the democratic party.
The race between Republican Sen. David Perdue and Democrat Jon Ossoff remains too early to be called because votes were still being counted, according to the Associated Press.
Dow Jones industrial average contracts rose 106 points and the S&P 500 futures fell 6 points. Nasdaq futures fell 234 points, or 1.83%, due to concerns by large technology companies that could face tougher antitrust control in a Democratic-controlled Congress.
The yield on the US Treasury’s 10-year benchmark reached 1% for the first time since March.
Georgia’s election will determine whether Democrats take control of Congress and allow them to advance the legislative agenda of President-elect Joe Biden.
A return to Democrats could lead to a higher fiscal stimulus and higher taxes. Only a Republican victory would give the GOP enough votes to prevent Biden from pursuing more ambitious trade, energy and security policies, analysts say.
Meanwhile, President Donald Trump has signed an executive order banning transactions with eight Chinese applications, including Alipay Ant Group. China on Wednesday accused the US of abusing its powers, saying its actions only affected American consumers.
2. – Wednesday’s economic calendar
US economic calendar includes Wednesday ADP National Employment Report for December at 8:15 AM ET, PMI Composite Final for December at 9:45 am, Factory Orders for November at 10:00, Oil Inventories for Week Ended on Jan. 1 at 10:30 a.m. and minutes from the Federal Reserve meeting Dec. 15-16 at 2 p.m.
Revenue reports will be issued Wednesday by Simply Good Foods (SMPL) – Get the report, Greenbrier Cos. (GBX) – Get the report and MSC Industrial Direct (MS) – Get the report.
3. – It appears that Alibaba is planning to sell $ 5 billion worth of bonds
Alibaba (crone) – Get the report It plans to raise at least $ 5 billion by selling a US dollar-denominated bond this month, Reuters reported, citing people familiar with the matter.
Offer revenue could reach $ 8 billion, depending on the response of investors, a close person told Reuters. The company is likely to use the corporation’s overhead funds.
The offer will come amid heightened regulated control of Alibaba co-founder Jack Ma’s empire from Chinese authorities.
Ma, who has not been seen or heard since November, angered Chinese President Xi Jinping in a speech in October that attacked the government’s role in blunting creativity and innovation in the technology sector. Since then, government officials have launched an antitrust investigation into Alibaba and shattered the initial public offering plans of its online banking subsidiary, Ant Group.
CNBC reported on Tuesday that Ma was not “missing”, in the sense that her location was unknown, but rather “lying down” in terms of her public appearances, in the hope that she would be able to eliminate the current government reaction.
Alibaba’s US deposit revenues fell 1.71% in premarket trading to $ 234 on Wednesday.
4. – The NYSE could reverse course on China Telco Delistings
The New York Stock Exchange is considering reversing the course for the second time to eliminate three major Chinese telecommunications companies after Treasury Secretary Steven Mnuchin criticized the NYSE’s surprise decision to grant the companies a deferral, Bloomberg reported, citing three people familiar with this matter.
The NYSE’s decision to keep the lists came as a surprise and caused confusion among U.S. Treasury officials and state departments and the National Security Council. The reversal of the NYSE also triggered an exasperation that reached the highest levels of the Trump administration, Bloomberg reported.
Just last week, the NYSE said it would phase out actions to comply with a U.S. government order signed by President Trump banning investment in 35 companies owned or controlled by the Chinese military. But on Monday, the Big Board said in a statement that it “no longer intends to move forward with the delisting action” following “consultation with the relevant regulators.”
But on Tuesday, Bloomberg reported that the exchange could continue with deletions after all.
Chinese mobile (CHL) – Get the report, China Telecom (NOT) – Get the report and China Unicom (CHU) – Get the report lost more than $ 30 billion in market value in the last weeks of 2020 as investors sold their shares following Trump’s order. They shed up to $ 12 billion more as their U.S. storage receipts collapsed Monday in the NYSE’s decision to write them off. Prices rose on Tuesday after the NYSE canceled the write-off and fell again after Bloomberg’s story broke out.
5. – Apple CEO Tim Cook gets a salary increase in 2020
Apple (AAPL) – Get the report CEO Tim Cook saw his cash bonus rise 40 percent last year to $ 10.7 million after the tech giant exceeded its domestic financial targets for last fiscal year.
Cook’s bonus fell 36 percent in 2019, when his paycheck dropped as revenue and profits fell due to weaker iPhone sales, The Wall Street Journal reported.
The newspaper reported that, according to Apple’s filing, Cook’s payment for 2020, excluding shares, totaled $ 14.8 million, including the cash bonus and a $ 3 million salary that has not changed. compared to the previous year.
Cook also had a total of $ 281.9 million in restricted stock that was invested during the year.
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