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