5 issues you need to know earlier than the inventory market opens on January 8, 2021
Here are the top news, trends, and analysis investors need to get their trading day started:
1. Wall Street continues its record run
Traders work on the NYSE floor.
US stock futures rose on Friday, the day after the Nasdaq closed at a record high. The Dow Jones Industrial Average and S&P 500 also closed on record Thursday. Both stock benchmarks tracked weekly gains despite the sharp falls on Monday. The first negative start to a new year since 2016. The Nasdaq was also significantly higher this week as Wall Street had been up for the past two days despite the deadly siege of the Capitol on Wednesday and fallout. Bitcoin, which topped $ 40,000 for the first time on Thursday, topped $ 41,000 on Friday.
2. The job report from December could be weaker than forecast
A pedestrian wearing a protective mask walks past a closed restaurant in New York on Thursday, December 17, 2020 while snow falls.
Angus Mordant | Bloomberg | Getty Images
The pace of employment growth has likely slowed dramatically and could even be negative in December as the coronavirus continued to spread rapidly in the US. Economists expect an increase of 50,000 jobs from 245,000 non-farm employees in November. The Department of Labor’s monthly employment report comes out at 8:30 a.m. ET, and the stock market could respond to a positive surprise rather than a negative one. The 10-year government bond yield remained above 1% early Friday prior to this report.
3. Trump finally admits that Biden will become president
President Donald Trump admitted late Thursday – for the first time in his own words, despite vowing never to admit – that a “new government” would be inaugurated on January 20. In a nearly three-minute video released after his Twitter ban ended, Trump made no mention of President-elect Joe Biden by name. It came a day after the outgoing president sparked the riot that saw a mob break through the U.S. Capitol in protest of the elections.
Trump said on Thursday’s video: “For those who committed violence and destruction, you are not representing our country. And for those who broke the law, you will pay.” That was a change in tone from a short video on Twitter during the mayhem. Then he said to the rioters: “I know your pain, I know that you are hurt. … But you have to go home now, we have to have peace.” He also called them “patriots”.
That Wednesday video was later removed from Twitter and resulted in a 12-hour suspension on Trump’s account that has since been lifted. Facebook and his Instagram unit will suspend Trump’s accounts “indefinitely and for at least the next two weeks until the peaceful change of power is complete,” CEO Mark Zuckerberg announced on Thursday.
4. Pelosi, Schumer call for Trump to be removed from office
House Speaker Nancy Pelosi (D-CA) and Senate Minority Chairwoman Chuck Schumer (D-NY) speak after a press conference on Capitol Hill on December 20, 2020 in Washington, DC.
Tasos Katopodis | Getty Images
Senate Democratic Chairman Chuck Schumer and House Speaker Nancy Pelosi are calling for Trump to be removed and accusing him of “instigating insurrection”. Schumer said if Vice President Mike Pence and the cabinet fail to invoke the 25th amendment, Congress should convene again to indict Trump.
Pelosi said Congress “may be ready” to indict Trump if executive officials fail to act.
Treasury Secretary Steven Mnuchin and Secretary of State Mike Pompeo were among cabinet secretaries who discussed the possibility of invoking the 25th amendment to remove Trump, three sources told CNBC. They noted that the process of appointing Pence to the presidency could take more than a week, which mitigates its impact.
5. First-day Covid deaths exceed 4,000 for the first time
The U.S. had its first day with over 4,000 deaths from Covid-19. On Thursday’s worst day of the pandemic, 4,085 people died from the virus. The recent coronavirus surge in America saw a record seven-day average daily new infections and deaths at 228,497 and 2,764, respectively. From Thursday, the number of people hospitalized with Covid fell slightly compared to Wednesday’s record high.
In the pharmacy of the University Hospital Tübingen (UKT), a doctor holds an ampoule of the corona vaccine from Biontech and Pfizer between his fingers.
Sebastian Gollnow | Image Alliance | Getty Images
A coronavirus vaccine developed by Pfizer and BioNTech in the United States appears to be effective against a key mutation in the more infectious variants of the coronavirus discovered in the UK and South Africa. The research has not yet been peer-reviewed in a study conducted by Pfizer. The World Health Organization said last month that health officials are “urgently investigating” whether the virus mutation is affecting vaccination performance.
– Follow all developments on Wall Street in real time with CNBC Pro’s live market blog. Find out about the latest pandemics on our coronavirus blog.