Here are five things you must know for Tuesday, Jan. 12:
1. -- Stock Futures Point Higher
Stock futures rose Tuesday, a day after investors took a breath to assess the political turmoil in Washington and prospects for more stimulus to combat the coronavirus pandemic.
Contracts linked to the Dow Jones Industrial Average gained 70 points, S&P 500 futures were up 9 points and Nasdaq futures rose 41 points.
The yield on the 10-year Treasury bond rose to a 10-month high of 1.158% as investors anticipate more government spending after the Joe Biden administration takes office next week. Biden has promised further economic stimulus “in the trillions of dollars.”
Stocks closed lower Monday and the S&P 500 ended a four-day winning streak as Wall Street's record-setting rally paused amid political and economic uncertainties. The Nasdaq was the big loser, falling 1.3%, as shares of tech heavyweights declined after they removed President Donald Trump's accounts from their platforms following the storming of the Capitol last week by his supporters.
Democrats in the U.S. House of Representatives, meanwhile, on Monday introduced an article of impeachment against Trump, charging him with "incitement of insurrection" following last week's deadly invasion of the Capitol.
House Democrats said they plan to vote on impeaching Trump on Wednesday unless he resigns or Vice President Mike Pence invokes constitutional authority to remove Trump from office. Pence has indicated he would reject demands from the House.
2. -- Bitcoin Steadies After Sharp Plunge
Bitcoin was rising Tuesday by 4.46% to $35,479, following a plunge from Sunday into Monday that took the world's largest cryptocurrency down as much as 26%.
That drop - the worst two-day decline since March - followed the all-time high of almost $42,000 that bitcoin hit last Friday on continued interest in the digital currency as a hedge against inflation and an alternative to the falling dollar. The price of bitcoin has more than quadrupled in the past 12 months.
Some investors think the sharp moves lower in bitcoin were a healthy correction.
“We think a pullback is healthy,” David Grider, lead digital strategist with Fundstrat Global Advisors, told Bloomberg. He added he doesn’t think the recent price action indicates that Bitcoin already has topped out.
Some forecasters have predicted bitcoin could rise to anywhere from $146,000 to $400,000, Bloomberg noted.
3. -- SoftBank Sells $2 Billion of Uber Shares
The fund sold 38 million shares for $53.46 each, according to a filing with the Securities and Exchange Commission. It still remains Uber's main shareholder, holding a 10% stake worth about $10 billion at current prices.
Uber shares rose 0.51% to $54.87 in premarket trading Tuesday. The stock has more than tripled from its lows in March 2020.
Uber's food delivery business has softened the blow that the company's ride-hailing operations have taken during the coronavirus pandemic. Sales remain depressed in many of Uber's largest markets that remain locked down because of Covid-19.
Uber, however, has said it could achieve a quarterly adjusted profit by the end of 2021.
4. -- Tuesday's Economic Calendar
The U.S. economic calendar on Tuesday includes the NFIB Small Business Optimism Index for December at 6 a.m. ET and the Job Openings and Labor Turnover Survey for November at 10 a.m.
5. -- Alabama Crushes Ohio State to Win College Football Title
DeVonta Smith, Alabama's Heisman Trophy-winning receiver, scored three touchdowns as the Crimson Tide beat the Ohio State Buckeyes, 52-24, to win the national college football championship.
Alabama finished the season 13–0, having won all 10 regular season Southeastern Conference games by at least 13 points before crushing their two playoff opponents, Notre Dame and Ohio State, by a combined 45 points, Sports Illustrated reported.
“This team accomplished more than any team,” said Alabama Coach Nick Saban. In his 14th season at Alabama, Saban won a sixth title.