1) The cryptocurrency Bitcoin plummets the most since March as a stronger dollar and investor nerves strip off nearly $140 billion in the cryptocurrency market cap, renewing fears that Bitcoin may be a bubble waiting to burst. But Bitcoin is still up roughly 89% over the past month. Other cryptocurrency coins, such as XRP and Litecoin, have shed about 18% each. Bitcoin hit a record high last week above $41,000, driven by the combination a weaker dollar, economic optimism, and a wave of bullish sentiment toward cryptocurrencies as big-name investors and investment banks touted a potential for huge gains this year, with the stronger dollar and higher bond yields triggering a plunge in Bitcoin and gold prices.
2) Trump has been permanently barred from the platform Twitter, resulting in$5 billion dollars in losses in market value, with Twitter stock dropping after the barring of the President. Twitter stated they permanently suspended the account due to the risk of further incitement of violence. Trump, who had about 88 million followers, generated enormous publicity for the platform with his controversial and incendiary tweets over the past six years. As a result, Twitter’s stock fell as much as 12% on Monday thus the decline of $5 billion dollars from Twitter’s market capitalization. Investors are worried that the Trump ban will erode interest in the platform and lead to boycotts among those who see the decision as politically motivated and a way to silence a major conservative voice.
3) Fears are growing that a bigger stimulus may be seen as the ‘peak of this bubble’ resulting in a market correction or worst. Some think that with the Democrats set to take control of both the House and Senate, perhaps President-elect Joe Biden will be less likely to spook markets with tax ambitions. Biden has promised $2,000 stimulus checks if the Senate turned blue, so now the question is what will happen? For millions of Americans, it’s been a painful waiting game already, they having subsisted with minimum money since losing their jobs from the pandemic. Joe Biden made the promise that if Jon Ossoff and Raphael Warnock turned the senate blue that would end the block in Washington and allow the $2,000 stimulus checks to immediately go out the door to people who are in real trouble.
4) Stock market closings for – 11 JAN 21:
Dow 31,008.69 down by 89.28
Nasdaq 13,036.43 down by 165.54
S&P 500 3,799.61 down by 25.07
10 Year Yield: up at 1.13%
Oil: down at $52.18
1) With the ravages of the new coronavirus, Los Angeles County has been so overwhelmed it is running out of oxygen. Arizona now has the nation’s highest rate of coronavirus hospitalizations. In the Atlanta area, nearly every major hospital is almost full, prompting state officials to reopen a field hospital for the third time. This last week, new deaths and cases have increased by more than 20 percent, for a total of more than 355,000 fatalities and 21 million infections. But the toll on hospitals is more critical. Southern California is running low on ICU beds, ventilators and morgue space. But the greatest shortage is oxygen. The sheer number of patients has placed such a strain on oxygen systems that some hospitals are struggling to provide adequate air pressure and flow into patients’ lungs. But expanding the oxygen supply doesn’t solve the problems, because of the volume being pumped, some of the pipes start to freeze up. Also you start running out of oxygen tanks that patients need to be discharged and sent home. As cases increase ICU beds get full, ER gets backed up, ambulances have nowhere to take patients. There’s severe, chronic staffing shortages, while elective surgeries get canceled so the ability to care simply degrades.
2) It is being reported that President Trump privately admits his defeat, but he wants to continue brawling for attention, so Trump has kept up a flurry of activities to pressure other Republicans to aid his effort to block Biden’s presidency. But one factor political pundits are overlooking is the state of the economy that Biden will inherit. Many are expecting the economy to make a strong quick recovery, but with the whole western economies going into massive deep debt, the likelihood of sever economic problems, that are worst than the 2008 downturn, looms large. The chances of Bidens new administration turning things around for America are very, very slim. And when there are economic problems, the President gets blamed even if it’s not his fault, so the new President will soon be in trouble with the people turning against him. Whether by design or accident, the charges of election fraud will most likely become an ‘albatross’ tied around Biden’s neck. For while the people now want to ignored the questions of voter fraud and corruption, as public opinion diminishes, that ‘albatross’ will hang heavy pulling his presidency down.
3) Communist China continues its backslide into a repressive totalitarian regime with the arrest of dozens of Hong Kong democracy activists and opposition politicians for violating the city’s controversial national security law, in what appears to be the largest roundup yet under the China imposed legislation. The Chinese justify the law which bands subversion, terrorism, secession and collusion with foreign forces, but the law has mainly been used against non-violent political opponents and dissidents.
4) Stock market closings for – 5 JAN 21
Dow 30,391.60 up by 167.71
Nasdaq 12,818.96 up by 120.51
S&P 500 3,726.86 up by 26.21
10 Year Yield: up at 0.96%
Oil: up at $49.81
1) With President Trump signing the COVID-19 relief bill into law, millions of Americans will again have pandemic-related benefits. The COVID-19 relief bill gives those who depend on unemployment benefits some amount of relief. In addition to enhancing unemployment benefits, there is also a $600 check for every adult making less than $75,000 a year.
2) To add to the economic woes of many Americans this year, for a second consecutive week, a massive winter storm is sweeping across the north and east. A new storm system brought heavy rain, gusty winds and thunderstorms to Southern California and will move across the country this week. The new storm system will move across the US during New Year’s Eve leaving heavy snow, winds, severe thunderstorms.
3) With President Trump’s veto of the annual military bill, the House voted to override President Trump’s veto, mustering bipartisan support to enact the legislation over the president’s objections and handing him a rare legislative rebuke in the final days of his presidency. The defense bill also takes steps to slow or block President Trump’s draw down of American troops from Afghanistan. The 322 to 87 vote is the first time a chamber of Congress has overridden one of Trump’s vetoes. The bill also authorizes a pay raise for the nation’s troops. However, the Senate, which must also get a two-thirds vote of its chamber to override vetoes, will take up the legislation later in the week. But the vote is complicated by another separate bill that would increase the size of individual stimulus checks to $2,000. For 60 years, lawmakers have used the annual military bill to bring home wins to their constituents. So far, the Congress has failed to over ride any of President Trump’s vetoes. But for the Senate to gain the two thirds vote to over ride, twelve Republicans must cross over. Other provisions of the bill are new benefits for tens of thousands of Vietnam-era veterans who were exposed to Agent Orange, a 3% increase in pay for service members and a boost in hazardous duty incentive pay. The bill also requires all federal officers enforcing crowd control at protests and demonstrations to identify themselves and their agencies, as well as directing the Pentagon to rename military bases which are named after Confederate leaders.
4) Stock market closings for – 29 DEC 20:
Dow 30,335.67 down by 68.30
Nasdaq 12,850.22 down by 49.20
S&P 500 3,727.04 down by 8.32
10 Year Yield: unchanged at 0.93%
Oil: up at $48.25
1) Just went everyone thought the second stimulus was a done deal, President Trump has made vague threats not to pass it. The President is asking Congress to amend the bill that has passed both chambers, with Trump decrying the bill’s $600 payments and its failure to properly support small businesses. He is now urging lawmakers to boost the $600 check to $2,000 for every American earning less than $75,000 per year. Furthermore, a veto would leave the threat of a government shutdown and expiring Covid-19 protections looming over the holiday season. The President said the bill contains too many provisions unrelated to the pandemic.
2) Threats of a second stimulus bill veto was reinforced with Trump’s veto of the defense bill, in part because of the requirement for renaming bases honoring Confederates and restrictions on the executive’s ability to bring troops home from overseas. Both the House and the Senate are already making plans for a post-Christmas session during which lawmakers plan to override the veto. Congress has until noon on January 3 to do so.
3) There are emerging new signs of economic distress. With the fate of a federal aid package suddenly thrown into doubt by President Trump, economic data on Wednesday shows why the help is so desperately needed. Personal income fell in November for the second straight month, and consumer spending declined for the first time since April, with a worsening pandemic continuing to take a toll on the U.S. economy. Applications for unemployment benefits remained high last week and have risen since early November. Experts know that things are going to get worse, the question is how much more worse. Many economists view direct payments to people as among the least effective measures, because much of the money goes to households that don’t need it. Spending on restaurants and hotels fell with transportation, clothing and gasoline also in declined. The decline in spending is spilling over into the labor market, with about 869,000 people filing new claims for state jobless benefits last week. The relief bill is smaller than many economists say is needed to carry the economy through the pandemic and ensure a robust recovery.
4) Stock market closings for – 23 DEC 20:
Dow 30,129.83 up by 114.32
Nasdaq 12,771.11 down by 36.80
S&P 500 3,690.01 up by 2.75
10 Year Yield: 0.96%
Oil: up at $48.06
1) There is a move in congress, lead by Rep. Ayanna Pressley, urging President-elect Joe Biden to cancel up to $50,000 per person in federal student debt. Supporters of the move consider the student debt crisis as a racial and economic justice issue encompasses the kind of bold, high-impact policy that the broad and diverse coalition, which elected Joe Biden and Kamala Harris are expecting them to deliver. The mounting student debt problem has 45 million Americans owing a total of about $1.6 trillion dollars in student loans, with one in 10 loans in delinquency or default. The typical monthly payment is between $200 and $299, with minorities experiencing the most difficulties with student debt.
2) A massive heavy snow storm continues to cross the Northeast as the season’s first major winter storm slowly moves off the East Coast, leaving as much as 4 feet of snow. There has been hundreds of vehicle crashes with some of them being deadly. The storm has left more than 50,000 customers without electricity mainly in Virginia and New York state. The interior of Pennsylvania and New York state took the brunt of the storm, the storm setting a new two-day snowfall record in Binghamton. The previous record was recorded March 2017 with 35.3 inches of snow. Airlines have canceled more than 600 flights because of the snow.
3) President Trump has issued an executive order prohibiting Americans from investing in companies tied to China’s military complex. U.S. investors are bared from buying into 35 Chinese companies the Pentagon has classified as aiding China’s defense, intelligence and security apparatus. The executive order has sparked sell offs of Chinese stocks and bonds, forced index firms to drop companies from marquee benchmarks, and pushed Wall Street to reassess risks from investing in China. There are questions at the state department whether the blacklist should include subsidiaries of the companies, or if affiliates should be included. Asset managers are now reaching out to the Biden transition team to glean how the new administration will interpret the executive order. Starting on January 11, U.S. investors are barred from the purchase or investment in stocks, with investors having until November 2021 to get rid of their Chinese securities.
4) Stock market closings for – 18 DEC 20:
Dow 30,179.05 down by 124.32
Nasdaq 12,755.64 down by 9.11
S&P 500 3,709.41 down by 13.07
10 Year Yield: up at 0.95%
Oil: up at $49.08
1) Database-software giant Oracle is moving its headquarters out of California (Silicon Valley) to Austin Texas making Oracle the latest tech giant to flee California. The software company had been based in Silicon Valley since it was founded in 1977. High technology industries have a long history in Austin, with IBM, Dell Technologies, and Samsung setting up shop in the city. Depending on their job, many of Oracle employees can choose their office location, as well as continue working from home part- time or full time. This is yet another account of technology talent packing up and leaving the famous tech capital of Silicon Valley for Texas, with Austin, in particular, being a popular destination for relocation. Other tech companies like Hewlett Packard Enterprise, are moving to other cities in Texas, who is relocating their headquarters from San Jose, California to Houston.
2) The Senate has unanimously passed a stopgap funding measure Friday, to avoid a government shutdown for one week, while lawmakers work to close a deal on government funding. Friday evening President Trump then signed the spending bill into law, which keeps the government open at current funding levels. The longest government shut down was for 35 days in 2018, which was the longest-ever shutdown in modern U.S. history. The nonpartisan CBO (Congressional Budget Office) estimates tax revenue is down $2 billion in 2019 because the IRS had halted some operations during the 2018 shutdown.
3) The $908 billion dollar coronavirus relief proposal is going to be split into two packages by lawmakers. The plan will have a $160 billion dollar part that ties together the two most controversial elements, which is more money for state and local governments and protections against coronavirus-related lawsuits. The second part is $748 billion dollars including another round of Paycheck Protection Program funding for small businesses, unemployment benefits, and more money for vaccine distribution, testing and schools. Splitting off the two most controversial items makes it easier to at least pass a smaller coronavirus agreement as part of a government funding deal. Congress is quickly running out of time to cut a big deal on coronavirus relief, the bipartisan group having been negotiating for weeks, to try to finalize its bill after announcing a framework earlier this month.
4) Stock market closings for – 11 DEC 20:
Dow 30,046.37 up by 47.11
Nasdaq 12,377.87 down by 27.94
S&P 500 3,663.46 down by 4.64
10 Year Yield: down at 0.89%
Oil: down at $46.56