Market Update

U.S. stock futures (as of 8 a.m. E.T.) are up after hitting new records on Inauguration Day. 

In Asia, stocks were mixed as they reacted to the inauguration of President Biden. Japanese stocks were positively impacted by news that the Bank of Japan would not make any immediate changes to its monetary policy. 

European markets (as of 8 a.m. E.T) are mixed. Leaders were overwhelmingly positive in welcoming President Biden following extensive trade conflicts with Former President Trump. Investors are waiting for the European Central Bank to announce interest rates later today although no change is expected. 

Business Brief

• The price of bitcoin has fallen over 10% in the past 48 hours, including 6% overnight. 
  • The market capitalization of cryptocurrencies has fallen by more than $100B in the last 48 hours. 
• Dr. Fauci announced that under President Biden, the U.S. would remain a member of the World Health Organization and join a global effort to support vaccinations in low-income countries. 
  • President Trump had begun  the process of withdrawing from the WHO claiming they were "China-centric."
• White House press secretary Jen Psaki announced that President Biden's first call to a foreign leader would be on Friday with Canadian Prime Minister Justin Trudeau. 
  • This comes the same day as President Biden signed an executive order revoking permits to build the Keystone XL pipeline.
  • Prime Minister Trudeau publically addressed Canadians on Wednesday, promising that he would communicate to President Biden the pipeline's importance. President Biden, however, refused to speak with Canadian officials before making his decision.
  • Alberta Premier Jason Kenney said he is "deeply disturbed" by President Biden's actions, takes them as a "direct insult" and an "attack" on Canada, and believes President Biden to be acting in "bad faith."  He is seeking legal recourse against the Biden administration. Canada's federal government said they have not ruled out taking similar actions.
• A Tesla Model 3 reportedly exploded in a residential parking lot on Tuesday.
  • There have been numerous reports of Tesla's cars exploding over the past few years. There is currently an ongoing lawsuit for a case in Chicago where a Tesla explosion caused the death of an 18-year old. 
• President Biden announced he will use the Defense Production Act to coerce companies to produce resources necessary for combating the pandemic. 
  • The Act allows the president to compel companies to accept and prioritize contracts with the government (without any negotiations on price, quantity, etc.) for any resources necessary for national defense. 
  • President Trump was criticized for using this wartime power sparingly, preferring to negotiate deals directly with private companies instead of "nationalizing" businesses. 

Movers and Shakers

• Paypal — Shares are up 1.25% after the stock was upgraded to a buy as investors see growth potential with consumers continuing to shift to digital transactions. 
• United Airlines — Shares are down 2% after reporting a larger than expected loss in Q4 2020. 
• Tesla — Shares are up ~1% after registration in California increased by 63% in Q4 2020. 
• Travelers — Shares are up 2% after the company reported higher than expected quarterly earnings. The company benefited primarily from a decrease in claims.
• SolarEdge Technologies — Shares are up 4% after Morgan Stanley analysts announced their belief that the solar manufacturer could capture a significant share of a growing market. 

As vaccines continue to be rolled out and President Biden puts his plan to vaccinate 100M people in 100 days into action: