Trump, YouTube, Visa, Plaid, Affirm IPO - 5 Things You Must Know Wednesday

Stock futures slip as investors look to robust government spending from the Biden administration to help rescue the U.S. economy; YouTube suspends Donald Trump's account; Affirm raises $1.2 billion in its IPO.
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Here are five things you must know for Wednesday, Jan. 13:

1. -- Stock Futures Slip, Bond Yields Ease

Stock futures were lower Wednesday as investors looked to the rollout of vaccines and robust government spending from the Joe Biden administration to help rescue an economy battered by the coronavirus pandemic.

Wall Street also was keeping a wary eye on developments in Washington, where the House of Representatives was preparing Wednesday to vote on the possible second impeachment of Donald Trump following last week’s attack on the Capitol by the president’s supporters.

Contracts linked to the Dow Jones Industrial Average fell 87 points, S&P 500 futures slipped 15 points and Nasdaq futures were down 45 points.

Stocks finished Tuesday's session slightly higher and yields on the benchmark 10-year Treasury rose as Wall Street expects another round of stimulus with the Biden administration soon taking office and Democrats controlling both the Senate and House.

Treasury yields declined Wednesday after two Federal Reserve officials said it was premature to think about tapering bond purchases later this year while the economy was still struggling through the pandemic.

These comments, along with a well-received auction of 10-year Treasuries, pushed the U.S. 10-year yield back down, away from the 10-month high of 1.187% reached in the previous session.

The benchmark yield traded at 1.126% on Wednesday, down from a 10-month high of 1.187%.

2. -- YouTube Suspends Trump's Account

YouTube, owned by Alphabet's  (GOOGL) - Get Report Google, suspended Donald Trump's account, saying his channel had its first strike against it and it would be barred from uploading new content for at least seven days.

A tweet from YouTubeInsider said it removed new content uploaded to Trump's channel "in light of concerns about the ongoing potential for violence" following last week's riot at the Capitol building.

"It now has its 1st strike & is temporarily prevented from uploading new content for a *minimum* of 7 days," the tweet added.

Twitter  (TWTR) - Get Report late last week said it was permanently suspending the personal and political accounts of Trump, while Facebook  (FB) - Get Report shut down the president's account on both the main platform and Instagram for the remainder of his term.

Trump's YouTube account has 2.78 million subscribers.

Alphabet shares were down slightly in premarket trading Wednesday to $1,733.15.

Alphabet and Facebook are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

3. -- Visa and Plaid Call Off $5.3 Billion Merger

Visa  (V) - Get Report and Plaid called off their merger, a deal the Justice Department had challenged was anticompetitive.

The credit-card giant agreed last year to pay $5.3 billion for Plaid, a payments-technology company focused on helping consumers build wealth by what it calls “democratizing financial services.” The Justice Department filed suit in November to block the deal.

"We are confident we would have prevailed in court as Plaid's capabilities are complementary to Visa's, not competitive," said Al Kelly, chairman and chief executive of Visa, in a statement.

Combining the San Francisco companies "would have delivered significant benefits, including greater innovation for developers, financial institutions and consumers," he said.

In a statement Tuesday, the Justice Department said the "transaction would have enabled Visa to eliminate this competitive threat to its online debit business before Plaid had a chance to succeed, thereby enhancing or maintaining its monopoly."

Visa shares rose in premarket trading Wednesday, up 0.33% to $209.54.

4. -- Affirm Raises $1.2 Billion After IPO Prices Above Range

The initial public offering for Affirm Holdings was priced at $49 a share, higher than the targeted range, and the payment-technology company raised $1.2 billion.

The shares of the San Francisco-based company had been marketed at between $41 to $44, a range that it had raised Monday from $33 to $38. Affirm sold 24.6 million common shares in the offering. 

The IPO gives Affirm a market value of $11.9 billion based on the outstanding shares listed in its regulatory filings, according to Bloomberg, which first reported the IPO pricing. The company’s fully diluted valuation, including options and restricted stock units, is about $15 billion.

The stock is expected to begin trading Wednesday on the Nasdaq under the symbol "AFRM."

Affirm was founded in 2012 by Max Levchin, who also co-founded PayPal.

Affirm had announced in December that it was delaying its IPO plans.

5. -- Wednesday's Economic Calendar

The U.S. economic calendar for Wednesday includes the Consumer Price Index for December at 8:30 a.m. ET, Oil Inventories for the week ended Jan. 8 at 10:30 a.m. and the Federal Reserve's "Beige Book" at 2 p.m.

IHS Markit  (INFO) - Get Report is expected to report earnings Wednesday.