The Federal Reserve is expected to take a very big step toward its first rate hike

 The Federal Reserve is expected to announce a dramatic policy shift Wednesday that will clear the way for a first interest rate hike next year.

Markets are anticipating the Fed will speed up the wind-down of its bond buying program, changing the end date to March from June.

That would free the central bank to start raising interest rates from zero, and Fed officials are expected to release a new forecast showing two to three interest rate hikes in 2022 and another three to four in 2023. Previously, there had been no consensus for a rate hike in 2022, though half of the Fed officials expected at least one.

At the end of its two-day meeting Wednesday afternoon, the central bank should also acknowledge that inflation is no longer the “transitory” or temporary problem officials had thought it was, and that rising prices could be a bigger threat to the economy. The consumer price index rose 6.8% in November, and it could be hot again in December.

“I think getting out of the easing business is very much overdue,” said Rick Rieder, chief investment officer of global fixed income at BlackRock.

The Fed put its quantitative easing program in place to combat the effects of the pandemic in early 2020, and it also slashed its fed funds target rate back to zero.

Stocks making the biggest moves premarket - GME AMC BYND TSLA

 GameStop (GME) – The videogame retailer – one of the so-called “meme” stocks – lost another 3.1% in the premarket following a nearly 14% tumble yesterday to its lowest close since March. GameStop had seen its stock slide last week after reporting a wider quarterly loss.

AMC Entertainment (AMC) – The movie theater operator’s stock slid 6% in premarket trading, after extending a losing streak to 3 days with a more than 15% plummet Monday. Last week, CEO Adam Aron sold all his holdings in AMC while CFO Sean Goodman sold the bulk of his AMC stock.

Beyond Meat (BYND) – The maker of plant-based meat substitutes saw its stock jump 4.8% in premarket action, putting it in a position to break a 3-day losing streak. Piper Sandler upgraded the stock to “neutral” from “underweight,” saying a nationwide launch at McDonald’s (MCD) could happen within less than 3 months.

Tesla (TSLA) – Tesla shares slid 1.5% in premarket trading after CEO Elon Musk sold more of his holdings to cover tax bills generated by the exercising of stock options. Tesla has dropped more than 20% from its all-time high and its overall market value has fallen back under the $1 trillion mark.

China set to tighten foreign funding rules for tech companies

 

• China's crackdown on its technology sector looks set to continue following nearly a year of unwieldly regulatory efforts. It all began in November 2020, when Jack Ma's Ant Group was forced to cancel what would have been the world's largest IPO. Regulatory efforts then turned to data security and protection - with large fines imposed on Alibaba (NYSE:BABA) and food-delivery giant Meituan (OTCPK:MPNGY) - and culminated in a New York Stock Exchange delisting announcement last week by DiDi Global (NYSE:DIDI).
• The latest: China is said to be drawing up a blacklist that will make it harder for new technology companies to raise foreign funding and list overseas, FT reports. The blacklist could be published as early as this month, and would include startups that use a so-called variable interest entity structure, which are controlled by a company by means other than a majority of voting rights. VIEs have been used for decades by Chinese tech groups, such as Alibaba (BABA) and Tencent (OTCPK:TCEHY), to circumvent foreign investment restrictions and raise funds internationally.
• Prompting the decision is the Chinese Communist Party's move away from the proliferation of the private sector, to a more state-owned enterprise economy (or at least having more involvement and control of the business environment). Compared to prior decades, the new economic order is more concerned about the control of data and flows of capital vs. economic liberalization and reforms. The CCP is also fearful that foreign investment could lead to "disorderly capital expansion," which means that foreign interests influence what goes on inside China.

Do Hedge Funds Love The Boeing Company (BA)?

According to Insider Monkey's hedge fund database, Ken Griffin's Citadel Investment Group has the largest call position in The Boeing Company (NYSE:BA), worth close to $1.9354 billion, corresponding to 0.4% of its total 13F portfolio. The second most bullish fund manager is Renaissance Technologies, which holds a $329.6 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining peers with similar optimism consist of D. E. Shaw's D E Shaw, Israel Englander's Millennium Management and Phill Gross and Robert Atchinson's Adage Capital Management. In terms of the portfolio weights assigned to each position Symmetry Peak Management allocated the biggest weight to The Boeing Company (NYSE:BA), around 8.17% of its 13F portfolio. Heard Capital is also relatively very bullish on the stock, dishing out 5 percent of its 13F equity portfolio to BA.

Visa launches crypto consulting services in push for mainstream adoption

 

• Visa said Wednesday it is launching an advisory practice to help clients navigate the world of cryptocurrencies.
• The payments processor hopes it can help further mainstream adoption of bitcoin and other digital currencies.
• Visa and its rival Mastercard see crypto as a key growth opportunity as they expand beyond card payments.

Boeing says P-E firm orders 30 additional 737 MAX jets

 

• Boeing (BA +2.2%) pops in early trading after saying 777 Partners placed an order for 30 additional 737 MAX jets, nearly doubling the P-E firm's original order.
• The new order lifts 777's commercial aircraft portfolio to 68 737 MAX aircraft, which are valued at $3.7B at list prices.
• "We have long been confident in the economics of the 737 MAX family but we are especially excited about the 737-8-200 variant which represents the bulk of our additional orders," says Josh Wander, managing partner of 777 Partners.
• The news extends yesterday's nearly 4% gain for Boeing, which surged alongside travel related stocks on early signs that the COVID-19 omicron variant may cause milder symptoms than previous strains.

Dow futures jump more than 300 points, continuing rebound as investors reassess omicron risk

 Stock futures jumped early morning Tuesday after a rebound from a rollercoaster week as investors grew less fearful of the potential impact from the new omicron coronavirus variant.

Futures on the Dow Jones Industrial Average rose 358 points, or 1%. S&P 500 futures rose 1.3% and Nasdaq 100 futures were up 1.7%.

Chipmaker stocks were the early winners, with Intel leaping 8.4% and NVIDIA up 3.7%, following news that Intel was planning to take its self-driving car unit, Mobileye, public in mid-2022.

Casino stocks also were hot, as Las Vegas Sands rose 3.4%, while cruise lines also gained on the enthusiasm that omicron may pose less of a threat than feared. Carnival and Norwegian Cruise Line Holdings jumped about 3.5% each.

Apply for Options Upgrade in TD

 1. In TD Web Login, search for "request Options Approval or Upgrade"

2. Look for Apply for Options page. It should be under My Profile -> General --> Apply for Options

3. Check current Options level, It should be at the highest level (Advanced)

4. During the application, 
4.1 In Investment Objectives, select growth and speculation
4.2 In Years of Experience, select 10+

5. Submit the application

6. It may take 3-5 business days for approval.

Ransomware attack forces shutdown of largest fuel pipeline in the U.S.

• Colonial Pipeline fell victim to a cybersecurity attack on Friday that involved ransomware, forcing it to temporarily shut down all pipeline operations.
• Colonial transports nearly half of the East Coast’s fuel supply through a system that spans over 5,500 miles between Texas and New Jersey.
• The pipeline transports gasoline, diesel, home heating oil and jet fuel. It also supplies the military.
• Colonial said it has contacted law enforcement and other federal agencies and is working to restore service.
• The Department of Energy and Federal Energy Regulatory Commission are monitoring the situation.
• President Joe Biden was briefed on the incident Saturday morning, according to the White House.

 https://www.cnbc.com/2021/05/08/colonial-pipeline-shuts-pipeline-operations-after-cyberattack.html

Biden says gun violence in U.S. is an epidemic, unveils executive actions and calls for national red flag law

 

• President Biden announced a series of executive actions aimed at reducing gun violence, while urging Congress to pass broader gun-control legislation.
• The actions were unveiled in the wake of a recent spate of mass shootings across the country, including a deadly attack Thursday in South Carolina.
• The actions direct the Justice Department to craft a rule addressing untraceable “ghost guns” and to publish example “red flag” legislation for states.
• Biden also called for a national red-flag law.

MARKETS Stock futures are in positive territory following Biden’s infrastructure speech

U.S. stock futures nudged higher early Thursday as Wall Street looked to build on a solid March following the rollout of President Joe Biden’s infrastructure plan.

Futures tied to the Dow Jones Industrial Average pointed to an opening gain of about 50 points. S&P 500 futures rose 0.3% and Nasdaq 100 futures climbed 0.9%.

The move in futures came after Biden introduced his multitrillion-dollar infrastructure proposal. The plan includes spending on roads and bridges as well as green energy and water system upgrades.

This marks the second major spending push of Biden’s presidency after he signed a $1.9 trillion relief and stimulus bill on March 11.

“With the American Rescue Plan, we’re meeting immediate emergencies. Now it’s time to rebuild,” Biden said on Wednesday.

 https://www.cnbc.com/2021/03/31/stock-market-futures-open-to-close-news.html

CDC chief warns U.S. headed for 'impending doom' as Covid cases rise again: 'Right now I'm scared' (cnbc.com)

 CDC chief warns U.S. headed for 'impending doom' as Covid cases rise again: 'Right now I'm scared' (cnbc.com)

• The U.S. is facing “impending doom” as daily Covid-19 cases begin to rebound once again, CDC Director Dr. Rochelle Walensky said during a press briefing.
• The U.S. is recording a weekly average of 63,239 new Covid-19 cases per day, a 16% increase compared with a week ago, according to an analysis of data compiled by Johns Hopkins University.
• When cases rise as they have over the last week or so, Walensky said they often “surge and surge big” shortly thereafter.