Dow Jones futures rose slightly late Wednesday, along with S&P 500 futures and Nasdaq futures. The stock market rally had a mixed session Wednesday, taking in stride President Trump’s threat to veto the stimulus deal.
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Alibaba Probe
The State Administration for Market Regulation has opened an anti-monopoly probe vs. Alibaba (BABA). Separately, payments giant Ant Group, an Alibaba affiliate, said it’s received a notice for high-level talks with financial regulators. Last month regulators suspended the huge Ant Group IPO just days before its debut on the Hong Kong and Singapore exchanges.
Regulators have signaled growing concern about big internet giants, especially platforms run by Alibaba and Tencent (TCEHY). Alibaba in particular has run afoul of regulators.
The latest news came out after 7:30 p.m. ET.
BABA stock fell 3.4% in extended trade on U.S. markets. Shares have tumbled in the past several weeks as regulators take aim at Alibaba. JD.com (JD), another e-commerce giant and allied with Tencent, lost 1% late Wednesday after rebounding above their 50-day line Wednesday. Tencent stock, which trades over the counter in the U.S., was not active overnight after a slight gain Wednesday.
In Hong Kong trading, as the news became more widespread, Alibaba stock tumbled, with JD.com and Tencent down modestly.
Chip Stocks In Focus
In Wednesday’s session, Monolithic Power Systems (MPWR) briefly broke out, closing just below a conventional buy point. Meanwhile, Apple chipmakers Taiwan Semiconductor (TSM) and Qorvo (QRVO) are near buy points, with Apple stock itself closing in on a breakout. Chip-equipment makers Lam Research (LRCX) and Applied Materials (AMAT) are finding support around a key level, offering potential buying opportunities. Finally, Advanced Micro Devices (AMD) fell for a sixth straight session, but is in buy range and also trying to find support.
Trump Veto Threat For Stimulus Deal
President Trump’s Tuesday night threat to veto the $900 billion stimulus deal and $1.4 trillion omnibus spending bill came as a surprise, initially knocking Dow Jones futures, but not too much. Trump criticized some spending provisions, but also wanted a big bump in direct checks to adult Americans to $2,000, up from $600 in the stimulus deal. He did follow through on his veto threat on the omnibus spending bill late Wednesday.
House Speaker Nancy Pelosi quickly endorsed Trump’s $2,000 check proposal, but it’s unclear if Senate Republicans will go along. The overwhelming support for the stimulus deal suggests Congress could override a Trump veto, if it actually happens.
Investors may be assuming that the stimulus deal will go through in some fashion, with or without changes.
Apple, AMD and TSM stock are on IBD Leaderboard. LRCX stock is on SwingTrader. AMD, LRCX, MPWR, TSM and AMAT stock are all on the IBD 50.
Dow Jones Futures Today
Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures climbed 0.2% and Nasdaq 100 futures advanced…
Go to the news source: Dow Jones Futures: Stock Market Rally Takes Trump Veto Threat In Stride; China L…
