Here are five things you need to know by Wednesday, January 6th:
1. – Stock futures mix as Wall Street bets win Senate for Democrats
Stock futures mixed on Wednesday as investors bet that Democrats could win the U.S. Senate and that tensions between the U.S. and China rose again.
Democratic Reverend Raphael Warnock defeated Senator Kelly Loeffler in Georgia, winning one of two Senate rounds in the state. His victory puts the majority of the Senate within the reach of the Democratic Party.
The race between Republican Sen. David Perdue and Democrat Jon Ossoff is still too early to convene, as votes were still being counted, according to the Associated Press.
Contracts related to the Dow Jones Industrial Average rose 106 points and futures S&P 500 fell 6 points. Nasdaq futures fell 234 points, or 1.83%, from concerns that large tech companies could face tougher antitrust control under a Democratic-controlled Congress.
The yield on the 10-year US Treasury benchmark hit 1% for the first time since March.
Elections in Georgia will determine whether Democrats take control of Congress and allow them to push the legislative agenda of President-elect Joe Biden.
A shift toward Democrats could lead to greater fiscal stimulus and higher taxes. A single Republican victory would give the Republican Party enough votes to prevent Biden from pursuing its most ambitious trade, energy and security policies, analysts say.
Meanwhile, President Donald Trump signed an executive order banning transactions with eight Chinese applications, including Ant Group’s Alipay. China on Wednesday accused the United States of abusing its powers and said its actions only harmed American consumers.
2. – Economic calendar for Wednesday
Wednesday’s U.S. economic calendar includes the December ADP national employment report at 8:15 a.m. ET, the December PMI composite final at 9:45 a.m., November factory orders at 10 a.m. , oil inventories for the week ended Jan. 1 at 10:30 a.m. and minutes from the Federal Reserve meeting Dec. 15-16 at 2 p.m.
Simply Good Foods will release earnings reports on Wednesday (SMPL) – Get the report, Greenbrier Cos. (GBX) – Get the report and MSC Industrial Direct (MSM) – Get the report.
3. – Alibaba is reportedly planning a $ 5 billion bond sale
Alibaba (BABA) – Get the report plans to raise at least $ 5 billion through the sale of a bond denominated in U.S. dollars this month, Reuters reported, citing people with knowledge of the issue.
A bid raise could reach $ 8 billion, according to the investors’ response, a person close to the matter told Reuters. The company is likely to use the funds for general corporate expenses.
The offer would come amid increased regulatory control of Alibaba co-founder Jack Ma’s empire by Chinese authorities.
Ma, who has not been seen or heard from since November, angered Chinese President Xi Jinping with a speech in October that attacked the government’s role in ‘affect the creativity and innovation of the technology sector. Since then, government officials have launched an antitrust investigation into Alibaba and have crushed the initial public offering plans of its online banking subsidiary, Ant Group.
CNBC reported Tuesday that Ma was not “missing,” in the sense that her location was unknown, but was “down” in her public appearances in hopes that she could avoid the current government’s reaction.
Alibaba U.S. deposit receipts fell 1.71% in pre-market trading on Wednesday to $ 234.
4. – NYSE could reinvest course on car withdrawal in China
The New York Stock Exchange is considering reversing course for the second time to withdraw three of China’s leading telecommunications companies after Treasury Secretary Steven Mnuchin criticized the NYSE’s surprise surprise at awarding companies compensation, it reported Bloomberg, citing three people familiar with the matter.
The NYSE’s decision to keep the listings came as a surprise and caused confusion among U.S. State and Treasury officials and the National Security Council. The NYSE investment also sparked an exasperation that reached the highest levels of the Trump administration, Bloomberg reported.
Last week, the NYSE said it would withdraw actions to comply with a U.S. government order signed by President Trump banning investments in 35 companies owned or controlled by the Chinese military. But on Monday the Big Board in a statement said it “no longer intends to proceed with the withdrawal action” after “consulting with the relevant regulatory authorities”.
But on Tuesday, Bloomberg reported that after all, the exchange could go down.
China Mobile (CHL) – Get the report, China Telecom (NO) – Get the report and China Unicom (CHU) – Get the report it lost more than $ 30 billion in market value in the last weeks of 2020, as investors sold the shares after Trump’s order. They threw up $ 12 billion more as receipts from their U.S. deposits fell on Monday on the NYSE’s decision to withdraw them. Prices rose on Tuesday after the NYSE canceled the downturn, and fell again after Bloomberg history broke.
5. – Apple CEO Tim Cook gets a 2020 pay rise
apple (AAPL) – Get the report CEO Tim Cook saw his cash bonus rise 40% last year to $ 10.7 million after the tech giant surpassed last year’s internal financial targets.
Cook’s bonus had dropped 36% in hits in 2019 when his pay package fell as revenue and profits declined due to weaker iPhone sales, The Wall Street Journal reported.
The newspaper reported that, according to the presentation of Apple’s representation, Cook’s salary for 2020, without shares created, amounted to $ 14.8 million, including the cash bond and a salary of $ 3 million that didn’t change from the previous year.
Cook also had a total of $ 281.9 million in restricted shares they acquired during the year.
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