Stock futures edge higher with bank earnings and retail sales in focus; U.S. casino shares surge as Macau clarifies gaming license rules; Tesla Cybertruck could be delayed until 2023, Reuters reports; President Biden proposes historically diverse set of Fed nominees and tennis star Novak Djokovic has his Austrian visa revoked by immigration authorities.
Here are five things you must know for Friday, January 14:
1. — Stock Futures Edge Higher With Earnings, Retail Sales in Focus
U.S. equity futures moved higher Friday as investors looked to claw-back from of yesterday’s declines, lead but another slide in tech stocks, amid concerns over the hawkish tone from the Federal Reserve and the unofficial start of the fourth quarter earnings season.
Fed Governor Lael Brainard’s testimony to the Senate Banking Committee yesterday underscored the central bank’s commitment to lowering the country’s inflation rate — the fastest since 1982 — with rate hikes and reduced policy support.
Warnings from airline bosses about the impact of Omicron infections on travel demand, as well as the pace of the variant’s spread, are also raising concerns for growth in the broader economy, which is also seeing fiscal support being removed as lawmakers look to mid-term elections later in the year.
Fourth quarter earnings from three of the biggest banks on Wall Street — JPMorgan Chase (JPM) – Get JPMorgan Chase & Co. Report, Wells Fargo (WFC) – Get Wells Fargo & Company Report and Citigroup (C) – Get Citigroup Inc. Report — before the opening bell will likely set the tone for early trading, but tech stocks are also likely to key on benchmark 10-year note yields, which could move higher if December retail sales data comes in hot when its published at 8:30 am Eastern time.
On Wall Street, futures tied to the Dow Jones Industrial Average are indicating a 95 point opening bell gain while those linked to the S&P 500 are priced for an 11 point bump to the upside.
Futures tied to the Nasdaq are indicating a modest 30 point opening bell gain as benchmark 10-year Treasury note yields hold at 1.738% in overnight trading.
2. — U.S. Casino Shares Surge As Macau Clarifies Licensing Rules
Las Vegas Sands (LVS) – Get Las Vegas Sands Corp. Report and Wynn Resorts (WYNN) – Get Wynn Resorts, Limited Report shares surged higher in pre-market trading after officials in Macau set out plans to limit the number of casinos in the world’s largest gaming hub.
Macau, a Special Administrative Region of the People’s Republic of China, sparked concern last year when it began mulling changes to both the number and tenure of casino permits. Today’s recommendations, which need approval from the local legislature, would allow U.S. gaming groups to bid for licenses that last as long as 13 years when their current permissions expire in June.
Macau’s gaming market generates around $37 billion in annual revenues, around five times more than the collective take of the Las Vegas strip.
Las Vegas Sands shares were marked 4.75% higher in pre-market trading to indicate an opening bell price of $39.45 each, while Wynn Resorts gained 4.83% to $88.30 each.
3. — Tesla Cybertruck Likely Delayed Until 2023 – Reuters Report
Tesla (TSLA) – Get Tesla Inc Report shares edged modestly higher in pre-market trading after Reuters reported the clean-energy carmaker will delay production of its Cybertruck until at least the first quarter of next year.
Tech website The Verge noted Thursday that Tesla had removed any reference to 2022 production schedules in late December, while Reuters reported the delays are linked to late-stage changes in features and designs for the Cybertruck, which was first unveiled by founder and CEO Elon Musk in 2019.
News of the delay sparked a Thursday rally in shares of Ford (F) – Get Ford Motor Company Report, taking it past the $100 billion mark for the first time ever, as investors bet its F-150 Lightning EV truck could take market share from Tesla if the Cybertruck delays continue.
Tesla shares were marked 0.2% higher in pre-market trading Friday to indicate an opening bell price of $1,033.50 each. Ford was marked 1% lower at $24.77 each.
4. — President Biden Unveils Historically Diverse Fed Nominees
President Joe Biden sent the names of three potential Federal Reserve nominees to the Senate late Thursday as he looks to fill out the central bank’s influential seven-member panel just as it begins mulling rate hikes in the world’s largest economy.
Federal Reserve Governor Sarah Bloom-Raskin was nominated to serve as the Bank’s key regulator while to African American economists, Philip Jefferson and Lisa Cook, were tabbed to sit on the central bank’s Board of Governors.
If all are approved — and Republicans have expressed concerns over the appointment of Bloom-Raskin as as vice chair for supervision — the Fed’s Board would ultimate include four women and two African Americans, easily the most diverse and representative panel in the Fed’s 108-year history.
5. — Novak Djokovic Has Australian Visa Revoked, Plans Appeal
Novak Djokovic had his Australian visa revoked by immigration officials Friday in the latest twist in a weeks-long drama that could keep the world’s top tennis player out of next week’s Australian Open championships.
Immigration Minister Alex Hawke used what is known as ministerial discretion to revoke Djokovic’s visa, which was granted after a court hearing last week following his detainment by the Australian Border Force for attempting to enter the country without a valid Covid vaccination status.
Lawyers for the 34,-year-old Serbian national — and vocal anti-vax campaigner — called the decision “patently irrational” and vowed to appeal in a hearing expected to be held on Sunday. If the revocation is confirmed by the court, however, Djokovic would be barred from entering Australian for at least three years.
