Here are five things you need to know by Tuesday, January 26th:
1. – The sliding futures stimulus package on concerns may be delayed
Stock futures fell on Tuesday as market sentiment was hit by the possibility that a US coronavirus relief package could be delayed.
Contracts related to the Dow Jones Industrial Average fell 29 points, S&P 500 futures fell 9 points and Nasdaq futures fell 46 points ahead of revenue reports from some of the largest technology companies.
Senate Majority Leader Chuck Schumer said Monday it would not be likely that there would be an aid package before mid-March. That’s when the federal unemployment benefits authorized by the last $ 900 billion package will expire.
President Joe Biden said he was open to negotiations on his proposed $ 1.9 trillion plan to send $ 1,400 to most Americans and offer other support to the economy, including funds for distribution of vaccines.
A bipartisan group of senators has already been opposed to the size of Biden’s plan.
The coronavirus pandemic, meanwhile, has killed more than 421,000 in the United States and concerns have been growing about the rugged deployment of vaccines in the country. Biden said he anticipates vaccines will be available to anyone in the United States before spring, but to meet that projection vaccine manufacturers will have to drastically increase production.
Stocks ended mixed on Monday amid questions about whether Biden’s White House will be able to offer another round of stimulus. The S&P 500 and the Nasdaq, however, managed to close at record highs.
2. – Calendar for Tuesday: Microsoft and AMD Earnings, Federal Reserve meeting
Microsoft earnings reports are expected Tuesday (MSFT) – Get the report, Advanced micro devices (AMD) – Get the report, Starbucks (SBUX) – Get the report, Verizon (VZ) – Get the report, Johnson & Johnson (JNJ) – Get the report, General Electric (TO GIVE) – 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.
General Electric Earnings Preview: That’s what the charts say
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Tuesday’s U.S. economic calendar includes the first day of a two-day Federal Reserve meeting. The central bank is not expected to change interest rates and has indicated it will keep them close to zero until 2023.
Mark Heppenstall, director of investment at Penn Mutual Asset Management, said the central bank will likely reiterate its “commitment to extended monetary accommodation” at the meeting.
“Uncertainty about the short-term course of the pandemic and signs of weakening labor markets suggest that recent talks by Fed officials are still premature,” Heppenstall added, referring to when the Fed could begin to reduce asset purchases.
The calendar also includes the Case-Shiller house price index for November at 9:00 ET and consumer confidence for January at 10:00
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 step down as chief executive after it was revealed he made larger-than-expected payments to Jeffrey Epstein, the dishonored financier.
Black paid Epstein $ 158 million in fees for trust and estate tax planning in the five years to 2017, far more than was previously known, according to a report by law firm Dechert .
Dechert’s review found no evidence that Black was involved in the criminal activities of the late Epstein, who was charged in 2019 with federal sex trafficking charges involving underage girls. Epstein committed suicide in prison while awaiting allegations of child sex.
Apollo also never detained Epstein for any service, the report concluded.
Black wrote in a letter to Apollo fund investors that he would cede the role of CEO to co-founder Marc Rowan on or before July 31, while retaining the role of president.
The Wall Street Journal was the first to report on the content of the report and the letter.
Shares of Apollo Global rose 3.86% on Monday to $ 47.65.
4. – BlackBerry Shares Surge Again
BlackBerry (BB) – Get the report more than 17% shot up in premarket trading on Tuesday, following the more than 28% increase in shares in the previous session as it received a boost from retailers and was being heavily mentioned on message boards online like Reddit.
BlackBerry, the security software and services company, said in a statement that it did not know the reasons for the move.
Shares of BlackBerry rose 17.36% to $ 21.16 in pre-market trading on Tuesday. Shares have gained 172% so far in 2021.
RBC analysts downgraded shares to lower performance than the industry, citing the valuation and saying there has been no change in the company’s key outlook. Analyst Paul Treiber kept his price target 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 shares? Jim Cramer explains
5. – Apple’s leading hardware engineer moves to “new project”
apple (AAPL) – Get the report said his chief hardware engineer, Dan Riccio, was moving to 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 main products during that time, from the first iMac computers to the latest 5G phones.
Apple did not specify which project Riccio will lead. But recent speculation has focused on the company’s efforts to develop high-end virtual reality headphones or augmented reality glasses.
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