5 issues it is best to know earlier than the inventory market opens on February 8, 2021
Here are the top news, trends, and analysis investors need to get their trading day started:
1. Wall Street will rise after the best week since November
Traders on the floor of the New York Stock Exchange
Source: The New York Stock Exchange
Dow futures indicated a gain of around 150 points on Monday’s open, a move that would beat the closing record of the 30-stock average and its intraday all-time high, both of which happened last month. The S&P 500 and Nasdaq closed at record highs on Friday, while the Dow’s gain was about 40 points below its closing record as a disappointing January job report raised hopes of further economic stimulus to Americans and US businesses during the pandemic to help. All three stock benchmarks had their best weeks since November. The Reddit-fueled trading frenzy over short-squeeze names subsided when GameStop’s shares lost 70% last week, even up 19% on Friday. Over the past week, the video game retailer’s stock rose 400%. Shares were up 12% on the Monday before trading.
2. Tesla is investing $ 1.5 billion in Bitcoin, which is an all-time high
Elon Musk, founder of SpaceX and managing director of Tesla Inc., is coming to the Axel Springer awards ceremony in Berlin on December 1st, 2020.
Liesa Johannssen-Koppitz | Bloomberg | Getty Images
Tesla said in an SEC filing the electric automaker bought $ 1.5 billion worth of bitcoin after changing its investment policy last month. Bitcoin rose over $ 43,000 from an all-time high on Monday. The Tesla filing also states: “We assume that we will accept Bitcoin as payment for our products in the near future, subject to applicable laws and initially to a limited extent, which we may or may not liquidate upon receipt.” Elon Musk, CEO of Tesla, has spoken about Bitcoin and Dogecoin, another cryptocurrency, in recent tweets. Tesla’s shares rose on the Monday before trading.
3. Yellen says Biden Stimulus could lead to full employment next year
Janet Yellen, US Treasury Secretary, speaks during an unpictured meeting with US President Joe Biden in the Oval Office of the White House in Washington, DC, United States on Friday, January 29, 2021.
Shawn Thew | Bloomberg | Getty Images
The U.S. economy could return to full employment in 2022 if President Joe Biden’s $ 1.9 trillion coronavirus bailout package passes, Treasury Secretary Janet Yellen said Sunday. Long-term unemployment is at a historic high. While Biden has said he wants GOP’s support for his Covid relief effort, Democrats are taking steps to pass his approach without a Republican vote. Republicans have opposed the $ 1.9 trillion price tag and called for a lower income limit to receive the full direct payment of $ 1,400.
4. Trump impeachment begins this week
U.S. President Donald Trump waves as he arrives at Palm Beach International Airport in West Palm Beach, Florida on January 20, 2021.
Carlos Barria | Reuters
Pennsylvania Senator Pat Toomey, one of the harshest Republican critics of Donald Trump after the January 6 attack on the US Capitol, said on Sunday that he saw a conviction of the former president in his impeachment as “very unlikely”. Trump’s unprecedented second impeachment trial against the Senate will begin Tuesday. In a 50:50 split in the Senate, 17 Republicans would have to vote with each Democrat to convict. If the Senate does so, it could also vote in favor of preventing Trump from returning to federal office or reserving certain perks for former presidents.
5. South Africa suspends plans to use AstraZeneca’s Covid vaccine
Healthcare professionals wearing personal protective equipment (PPE) are attending to a patient in the makeshift ward devoted to treating possible COVID-19 coronavirus patients at the Steve Biko Academic Hospital in Pretoria on January 11, 2021.
Phill Magakoe | AFP | Getty Images
South Africa has suspended plans to vaccinate its healthcare workers with AstraZeneca’s vaccine after a small clinical study showed it was ineffective in preventing mild to moderate diseases of the prevalent variant in that country. The disappointing early results of the study, which have not yet been peer-reviewed, indicated that administering the AstraZeneca vaccine in South Africa may not make sense. AstraZeneca’s vaccine has not been approved in the United States. To date, only Pfizer and Moderna vaccines have been approved by the FDA for emergency use. One from Johnson & Johnson will be reviewed by the agency’s vaccine advisory board later this month.
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