Here are five things to know for Wednesday, January 6:
1. – Stock Futures Mixed as Wall Street Bates Democrat Win Senate
Stock futures were merged on Wednesday as investors bet that Democrats could win the US Senate and rose again to highs due to US-China tensions.
Democratic Rev. Rafael Warnock defeated Sen. Kelly Loeffler in Georgia, winning one of two senates in the state. His victory puts the Senate majority within the reach of the Democratic Party.
According to the Associated Press, the race between Republican Sen. David Perdue and Democrat John Osoff is still ongoing as votes are still being counted.
Dow Jones Industrial Average related contracts fell by 106 points and S&P 500 futures by 6 points. Nasdaq futures fell 234 points, or 1.83%, over concerns large technology companies may face strict anti-scrutiny under a Democrat-controlled Congress.
For the first time since March, the yield on the benchmark 10-year US Treasury note fell by 1%.
Elections in Georgia will determine whether Democrats take control of Congress and enable them to pursue President-Elect Joe Biden’s legislative agenda.
A swing for Democrats could lead to more fiscal stimulus and higher taxes. According to analysts, a Republican victory gave the GOP enough votes to prevent Biden from pursuing his more ambitious policies on trade, energy and security.
Meanwhile, President Donald Trump signed an executive order on Tuesday banning transactions with eight Chinese apps, including Ant Group’s Alipay. China on Wednesday accused the US of misusing its powers, saying its actions only harmed American consumers.
2. – Economic Calendar of Wednesday
In the US economic calendar, the ADP National Employment Report on Wednesday at 8:15 am for December, PMI Composite Finals at 9:45 am ET, factory orders at 10am in November, oil inventories for the week ended January 1. At 10:30 am from the Federal Reserve meeting and minutes 15-16 at 2 pm
Simple Good Foods will release earnings report on Wednesday (SMPL) – Get Report, Greenbriar Cos. (GBX) – Get Report And MSc Industrial Direct (Msm) – Get Report.
3. – Alibaba Reported Plans $ 5 Billion Bond Sale
Alibaba (Saint) – Get Report There are plans to raise at least $ 5 billion through the sale of US-denominated bonds in this month, Reuters reported, citing people with knowledge of the matter.
Based on investor feedback, proceeds from the proposal could reach $ 8 billion, a person close to the case told Reuters. There is a possibility that the company will use the money for general corporate expenses.
The offering will come from Chinese authorities amid regulatory scrutiny of Alibaba co-founder Jack Ma’s empire.
Ma, who has not been seen or heard since November, attracted Chinese President Xi Jinping’s ire with a speech in October that attacked the government’s role in blunting creativity and innovation in the tech sector. Since then, government officials have launched an antitrust investigation into Alibaba, and plan for an initial public offering of its online banking subsidiary, Ant Group.
CNBC reported on Tuesday that Ma was not “missing” in the sense that his location was unknown, but rather “low-lying” in the context of his public appearance, in the hope that he might leave the current government behind.
Alibaba’s US depository receipts fell 1.71% to $ 234 in Wednesday’s trade.
4. – NYSE China may reverse course on Telco delisting
The New York Stock Exchange is considering the course for the second time after delisting three major Chinese telecommunications companies, as Treasury Secretary Steven Menuchin criticized the NYSE’s surprise decision that the companies had canceled it, with Bloomberg declaring three Told people familiar with the matter.
The NYSE decision to keep the listing caused a surprise and confusion between the US Treasury and state departments and officials of the National Security Council. The NYSE vicissitudes also started superimposed which reached the highest level of the Trump administration, Bloomberg reported.
Last week, the NYSE said it would divest shares to obey the US government order signed by President Trump, which invests in 35 companies owned or controlled by the Chinese military. But on Monday, the Big Board said in a statement, “It no longer intends to proceed with the following” consultation with the relevant action. ”
But on Tuesday, Bloomberg reported that the exchange could proceed with delisting after all.
China Mobile (CHL) – Get Report, China Telecom (Cha) – Get Report And China Unicom (Chu) – Get Report More than $ 30 billion in market value was lost in the final week of 2020 as investors sold the shares following Trump’s order. His US depository receipts were flown over $ 12 million on Monday, according to the NYSE decision. Prices climbed on Tuesday after being canceled by the NYSE, and plummeted again after the Bloomberg story broke.
5. – Apple CEO Tim Cook Becomes Big 2020 Pay Raiser
Apple (AAPL) – Get Report CEO Tim Cook saw his cash bonus increase by 40% to $ 10.7 million last year after exceeding his technical financial goals for the previous fiscal year.
The Wall Street Journal reported that Cook’s bonuses fell by 36% in 2019, when his pay package fell along with declining revenues and profits.
The Journal reported that according to Apple’s proxy filing, Cook’s 2020 salaries, excluding vested shares, totaled $ 14.8 million, including cash bonuses and a $ 3 million salary that had not changed from the prior year.
Cook also held a total of $ 281.9 million in vested restricted stock during the year.
Jim Cramer holds Apple Action Alert Plus Member Club. Want to be cautious before buying or selling Jim Kramer AAPL? Learn more now