Here are five things you should know for Wednesday, January 6:
1. – Stock futures mixed while Wall Street bets Democrats win the Senate
Stock futures were mixed on Wednesday, with investors betting that Democrats could win the US Senate and with US-China tensions rising again.
Democratic Reverend Raphael Warnock defeated Senator Kelly Loeffler in Georgia, winning one of the state’s two-second Senate rounds. His victory puts the majority of the Senate within reach of the Democratic Party.
The dispute between Republican Senator David Perdue and Democrat Jon Ossoff is still too early to be called, as the votes are still being counted, according to the Associated Press.
Contracts linked to the Dow Jones Industrial Average rose 106 points and S&P 500 futures fell 6 points. Nasdaq futures fell 234 points, or 1.83%, due to concerns that major technology companies may face tougher antitrust scrutiny under a Democratic-controlled Congress.
The yield on the 10-year US Treasury reference note reached 1% for the first time since March.
The Georgia elections will determine whether Democrats will take control of Congress and allow them to advance President-elect Joe Biden’s legislative agenda.
A shift towards Democrats could lead to greater fiscal stimulus and higher taxes. Only a Republican victory would give the Republican Party enough votes to prevent Biden from pursuing its most ambitious trade, energy and security policies, according to analysts.
President Donald Trump, for his part, signed an executive order on Tuesday banning transactions with eight Chinese apps, including Ant Group Alipay. China accused the United States on Wednesday of abusing its powers, saying its actions hurt only American consumers.
2. – Wednesday’s economic calendar
The US economic calendar on Wednesday includes the ADP National Employment Report for December at 8:15 am ET, the PMI Composite Final for December at 9:45 am, Factory orders for November at 10 am, oil stocks for the week ending 1 January at 10:30 am and minutes from the Federal Reserve meeting from December 15 to 16 at 2:00 pm
Earnings reports will be published on Wednesday by Simply Good Foods (SMPL) – Get report, Greenbrier Cos. (GBX) – Get report and MSC Industrial Direct (MSM) – Get report.
3. – Alibaba allegedly plans to sell $ 5 billion bond
Alibaba (NANNY) – Get report plans to raise at least $ 5 billion by selling a US dollar-denominated security this month, Reuters reported, citing people with knowledge of the matter.
The proceeds from the offer could reach $ 8 billion, depending on the investor’s response, a person close to the matter told Reuters. The company would probably use the funds for general corporate expenses.
The offer would come amid increased regulatory scrutiny by Alibaba co-founder Jack Ma’s empire on the part of Chinese authorities.
Ma, who has not been seen or heard since November, drew the ire of Chinese President Xi Jinping with a speech in October that attacked the government’s role in dulling creativity and innovation in the technology sector. Since then, government officials have initiated an antitrust investigation on Alibaba and eliminated the initial public offering plans for its online banking subsidiary, Ant Group.
CNBC reported on Tuesday that Ma was not “disappeared” in the sense that his location was unknown, but “hidden” in terms of his public appearances in the hope that he can overcome the current government reaction.
Alibaba’s American deposit receipts fell 1.71% in Wednesday’s pre-market to $ 234.
4. – The NYSE can reverse the course again on removals from China Telco
The New York Stock Exchange is considering reversing the course a second time to withdraw three major Chinese telecommunications companies after Treasury Secretary Steven Mnuchin criticized the NYSE’s surprise decision to grant companies a pardon, Bloomberg reported. citing three people familiar with the subject.
The NYSE’s decision to keep prices was a surprise and created confusion among officials in the US Treasury and State departments and the National Security Council. The NYSE reversal also sparked exasperation that reached the highest levels of the Trump administration, Bloomberg reported.
Last week, the NYSE announced it would withdraw its shares to comply with an order from the U.S. government signed by President Trump that bans investments in 35 companies owned or controlled by the Chinese military. But on Monday, the Big Board in a statement said it “does not intend to proceed with the delisting action” after “consulting the relevant regulatory authorities”.
But on Tuesday, Bloomberg said the exchange could proceed with removals after all.
China Mobile (CHL) – Get report, China Telecom (TEA) – Get report and China Unicom (CHU) – Get report it lost more than $ 30 billion in market value in the final weeks of 2020, as investors sold the shares following Trump’s order. They lost up to $ 12 billion more as their American depositary receipts plummeted on Monday with the NYSE’s decision to remove them from the list. Prices rose on Tuesday after the NYSE canceled the delisting and fell again after Bloomberg’s story broke.
5. – Apple CEO Tim Cook gets big pay rise in 2020
Apple (AAPL) – Get report CEO Tim Cook saw his cash bonus rise 40% last year, to $ 10.7 million, after the tech giant exceeded its internal financial goals in the previous fiscal year.
Cook’s bonus fell 36% in 2019, when his payment package fell, as revenue and profit declined linked to weaker iPhone sales, The Wall Street Journal reported.
The Journal reported that, according to Apple’s proxy request, Cook’s salary in 2020, excluding the acquired shares, totaled $ 14.8 million, including the cash bonus and a $ 3 million salary that has not changed in compared to the previous year.
Cook also had a total of $ 281.9 million in restricted shares acquired during the year.
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