Here are five things to know before Tuesday, January 26:
1. – Stock Futures slip on worries Stimulus package may be delayed
Stock futures fell on Tuesday as market sentiment was hurt by the possibility that a US coronavirus aid package could be delayed.
Contracts pegged to the Dow Jones Industrial Average were down 29 points, S&P 500 futures were down 9 points and Nasdaq futures were down 46 points on the earnings reports of some of the largest technology companies.
Senate leader Chuck Schumer said on Monday that an aid package before mid-March is unlikely. That’s when federal unemployment benefits approved by the latest $ 900 billion package expire.
President Joe Biden said he was open to negotiating his proposed $ 1.9 trillion plan to send $ 1,400 to most Americans and provide other support for the economy, including funding for vaccine distribution.
A twofold group of senators has already opposed the scale of Biden’s plan.
The coronavirus pandemic, meanwhile, has killed more than 421,000 people in the US and concerns about the bumpy vaccine rollout in the country are growing. Biden said he expects vaccines to be available to everyone in the US in the spring, but to meet that forecast, vaccine manufacturers will have to significantly increase production.
Shares ended up mixed on Monday, amid the question of whether the White House in Biden will be able to deliver another round of stimulus. However, the S&P 500 and Nasdaq were able to close at a record high.
2. – Tuesday Calendar: Microsoft and AMD Earnings, Federal Reserve Meeting
Revenue reports are expected from Microsoft on Tuesday (MSFT) – Request report, Advanced micro-devices (AMD) – Request report, Starbucks (SBUX) – Request report, Verizon (VZ) – Request report, Johnson & Johnson (JNJ) – Request report, General Electric (TO GIVE) – Request report, Lockheed Martin (LMT) – Request report, American Express (AXP) – Request report3M (MMM) – Request report, Xilinx (XLNX) – Request report, Raytheon Technologies (RTX) – Request report and Texas Instruments (TXN) – Request report.
General Electric Earnings Preview: Here’s what the charts say
Microsoft, Advanced Micro Devices and Starbucks are holdings in Jim Cramer’s Action Alerts PLUS member club. Want to be informed before Jim Cramer buys or sells the stock? Read more now.
The US economic calendar on Tuesday includes the first day of a two-day Federal Reserve meeting. The central bank is not expected to change interest rates and has indicated that it will keep them close to zero until 2023.
Mark Heppenstall, chief investment officer at Penn Mutual Asset Management, said the central bank is likely to reiterate its “commitment to long-term monetary adjustment” at the meeting.
“Uncertainty about the near-term pandemic course and signs of weakening labor markets suggest that the recent run-down talks by Fed officials are still premature,” added Heppenstall, referring to when the Fed could begin to wind down asset purchases.
The calendar also includes the Case-Shiller Home Price Index for November at 9 a.m.ET and consumer confidence for January at 10 a.m.
3. – Leon Black to step down as CEO of Private-Equity Giant Apollo
Leon Black, the founder and CEO of private equity giant Apollo Global Management (APO) – Request report, will step down as chief executive after it was revealed that he made more than expected payments to Jeffrey Epstein, the disgraced financier.
Black paid Epstein $ 158 million in trust and estate tax planning fees in the five years to 2017, far more than 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 indicted in 2019 on federal sex trafficking charges involving underage girls. Epstein committed suicide in prison pending allegations of child sex.
Apollo also never retained Epstein for services, the report concluded.
Black wrote in a letter to Apollo fund investors that he would relinquish the role of CEO to co-founder Marc Rowan on or before his 70th birthday on July 31, while retaining the role of chairman.
The Wall Street Journal was the first to report on the contents of the report and letter.
Shares of Apollo Global were up 3.86% on Monday to $ 47.65 during out of hours trading.
4. – BlackBerry shares are on the rise again
BlackBerry (BB) – Request report rose more than 17% in premarket trading Tuesday, after rising more than 28% of the stock in the previous session, as it got a boost from retailers and was mentioned a lot on online message boards like Reddit.
BlackBerry, the security software and services company, said in a statement that it was unaware of the reasons for the stock move.
Shares of BlackBerry were up 17.36% to $ 21.16 during premarket trading on Tuesday. The stock is up 172% so far in 2021.
Analysts at RBC have scaled back stocks to underperform against sector performance, citing the valuation and saying there has been no change in the company’s fundamental outlook. Analyst Paul Treiber maintained his target price at $ 7.50.
BlackBerry has become a favorite on the Reddit message board, as has GameStop (GME) – Request report and Express (EXPR) – Request report.
What is happening with GameStop Stock? Jim Cramer explains
5.- Apple Lead Hardware Engineer switches to ‘New project’
Apple (AAPL) – Request report said the lead hardware engineer, Dan Riccio, was moving on to a new project and will be replaced by John Ternus, currently a vice president of hardware engineering.
Riccio has been with Apple since 1998 and has worked on most of the company’s major products during that time, from the first iMac computers to the latest 5G phones.
Apple has not specified which project Riccio will lead. But the recent speculation has focused on the company’s efforts to develop a high-end virtual reality headset or augmented reality glasses.
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