The House of Representatives voted for a second time to impeach outgoing President Donald Trump. He now accounts for half of all impeachment votes.
Among the voters, ten Republican legislators voted for the motion, while another four abstained. The majority of GOP lawmakers opposed, underlining the hold that President Trump’s electoral base still has on the party.
Moreover, outgoing Senate Majority Leader Mitch McConnell said that Trump would not go through a trial by the upper chamber. That is until after Joe Biden’s inauguration.
Biden Stimulus Announcement, Powell Speech
President-elect Joe Biden will announce details of his stimulus plans. The extra stimulus aims to support the economy through the pandemic.
He has promised a sticker price “in the trillions of dollars.” That number supported equities and other risk assets for the last week.
People expect a proposal that will boost the recently authorized $600 direct payments to most Americans. It is an extension of increased unemployment insurance and support for state and local governments.
Signals that Biden will aim for bipartisan support imply that some elements of the plan may be trimmed. This is to appease Republican legislators.
More stimulus plans will imply higher federal borrowing. It will keep the onus on the Federal Reserve to step up as the new bonds’ biggest buyer. Fed Chairman Jerome Powell’s speech will be at 12:30 PM ET.
Meanwhile, Biden’s announcement will come after what is likely to further weaken in the labor market due to Covid-19. At 8:30 AM ET (1330 GMT), weekly data shows a 795,000 increase in initial jobless claims.
Stocks Unchanged; Tesla Recall, Blackrock’s Earnings Eyed
U.S. stock markets are set to open a little higher but are likely to stay in modest ranges. This is pending Biden’s announcement as well as any reaction from Fed Chairman Powell.
U.S. 10-year Treasury yields ticked up to 1.11% overnight. That is with 1.10% pivoting to be the new support level rather than a resistance level.
Dow Jones futures added 60 points or 0.2% by 6:30 AM. S&P 500 futures were unchanged, and NASDAQ Futures lost 0.3%.
Likely to be in focus later is electric car maker Tesla (NASDAQ:TSLA). Regulators urge to make what would be one of its biggest safety recalls ever.
The report Q4 earnings are asset manager Blackrock (NYSE:BLK) and Delta Air Lines (NYSE:DAL).