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Here’s what you need to know before markets open.
1. Nikola founder Trevor Milton plans to remain top shareholder. He stepped down as chairman in September over allegations of fraud, but his 33% stake in Nikola is the largest among any other investor in the firm.
2. Water futures set to trade on Wall Street for first time ever. The water contracts will allow farmers and investors alike to hedge against, or bet on the potential for water scarcity.
3. Low-quality stocks set to rally for the next few months. Investor rotation into low-quality stocks has anecdotally indicated an improvement in confidence that the economy will recover, according to CFRA.
4. Four indicators pointing to a roaring stock market. A strong showing for US stocks in 2020 sets the stage for continued upside in the first half of 2021, Bank of America said.
5. One market gauge hit its highest point since the dot-com bubble. The S&P 500’s CAPE ratio, which measures inflation-adjusted earnings over the past decade, is twice its historical average.
6. Most effective stimulus bill will boost jobless benefits and PPP. Bolstered unemployment benefits would do more to lift economic growth than another round of direct payments, JPMorgan said.
7. Global stocks are down. European indices fell between 0.2% and 0.6%. US futures fell between 0.2% and 0.4%. Asian stocks fell between 0.2% and 0.7%.
8. Earnings expected. Chewy and AutoZone are highlights.
9. A stock chief at BlackRock gave us his 2021 forecast. Tony DeSpirito broke down what’s next for the market’s winners, and explained why energy and retail are poised for a comeback.
10. Market wizard Chris Camillo grew his trading account by $9.7 million in 2020. Here’s the simple strategy he’s using to mint millions.