Mixed stocks, inflation, Bitcoin and Djokovic – Five things to know

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Here are five things you need to know for Monday, January 10:

1. – Futures contracts on mixed stocks, focus on bond yields

U.S. equity futures traded mixed on Monday, as benchmark 10-year T-bill yields hit a new 2-year high as investors continue to redefine equity prices, bonds and currencies after last week’s hawkish Fed minutes and robust jobs data.

With inflation expected to accelerate at the fastest annual rate in more than three decades later this week, fueled by the pandemic stimulus, supply chain disruptions and rising commodity prices, the minutes Fed reports from last week revealed a firmer commitment to contain price increases with rate hikes, three of which are expected to happen this year, according to interest rate futures.

In the meantime, with headline unemployment falling to 3.9% and oil prices returning to the $ 80 mark, investors fear that persistent inflation, alongside a protracted spike in Covid infections, could put the brakes on. US growth in the first few months of the year.

On Wall Street, futures contracts linked to the Dow Jones Industrial Average show a modest opening bell gain of 10 points, while those linked to the S&P 500 are valued at a pullback of 1 point.

The tech-focused Nasdaq Composite, which just had its worst week since February last year, looks to open 15 points lower as benchmark 10-year Treasury yields rise to 1.796% in the day to day exchanges.

2. – The week ahead on Wall Street

Data on inflation, bond auctions and bank profits will highlight a busy week on Wall Street, with investors also turning to key Congressional testimony from Federal Reserve Chairman Jerome Powell.

Powell will answer questions from the Senate Banking Committee on Tuesday as part of his re-appointment process, with Lael Brainard – President Joe Biden’s appointment as Fed vice chairman – expected to follow on Wednesday.

Wednesday will also feature inflation data for December, with economists looking for a headline CPI of 7.2%, as well as an auction of $ 36 billion of new 10-year Treasury bond yields.

Weekly jobless claims are slated for Thursday, with a $ 22 billion 30-year ticket auction scheduled for later this session.

On the earnings front, the biggest banks on Wall Street to kick off the fourth quarter earnings season on Friday with updates from JPMorgan Chase (JPM) – Get the report JPMorgan Chase & Co., Citigroup (C) – Get the Citigroup Inc. and Wells Fargo WFC report.

3. – Reddit hires Morgan Stanley, Goldman for $ 15 billion IPO

Reddit Inc. is getting closer to an IPO that could value the eponymous message board operator at around $ 15 billion with the hiring of investment banking advisers at Morgan Stanley and Goldman Sachs.

Multiple media outlets suggest the group, which filed plans with the U.S. Securities and Exchange Commission to take the 16-year-old company public last month, could surpass the $ 10 billion valuation it received. of a fundraising round in August led by Fidelity Management if and when it lists later this year.

Reddit, which has more than 100,000 so-called “community groups” and some 52 million daily active users, hired Drew Vollero – a former CFO of Snap Inc. SNAP who helped the messaging app maker go public in 2017 – in March and brought in investors such as Fidelity, Sequoia Capital and Chinese firm Tencent Holdings.

4.- Bitcoin Holds Near September Lows As Alternative Yields Surge

Bitcoin prices have held close to their lowest levels since late September in overnight trading, pegging the value of the world’s largest cryptocurrency at around 40% south of its all-time high. in mid-November.

A combination of rising government bond yields, a firmer US dollar, and the shutdown of a key bitcoin mining capacity in Kazakhstan last week have all combined to push bitcoin prices into the $ 41,000 low range in overnight trading, with analysts noting a lack of intra-day liquidity in protest against steep drops by investors.

Riot Blockchain (RIOT) – Get Report Riot Blockchain Inc, which fell 10.5% last week, was marked 0.2% lower in pre-market trading at $ 20.32 each while Marathon Parent Group, a bitcoin mining rival, was marked 1.8% higher at $ 29.00 each.

Bitcoin was last seen trading 0.15% higher during the session at $ 41,938.20 each.

5. – Novak Djokovic wins the first legal battle to play the Australian Open

Tennis star Novak Djokovic picked up an early victory on the pitch to stay in Australia and play in the first major championship of the year on Monday when a federal judge ordered the government to reinstate his visa.

Djokovic, who has not been vaccinated against Covid 19, was refused entry last week as he tried to travel to Melbourne, site of the Australian Open, to defend his 2021 title .

Federal Circuit Court Judge Anthony Kelly, however, ordered the reinstatement of his visa, as well as his release from a quarantine hotel, noting that the world number one had not had enough time to challenge the government’s decision. .

Australian Immigration Minister Alex Hawke can still revoke the 34-year-old Serbian’s visa – a condition Judge Kelly allowed in his ruling – under the country’s immigration law.

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