Stock Futures – Biden Infrastructure’s new plan announced soon, US stock futures are mixed
Biden will announce a new US$2 trillion infrastructure plan, and the company’s tax is rumored to be raised to 28%. US stock futures were mixed on Wednesday (31st). Dow Jones futures fell 0.08%, S&P 500 futures rose 0.08%, and Nasdaq 100 futures rose 0.59%.
1. Biden’s infrastructure bill will be announced on Wednesday
US President Biden is about to announce the details of the infrastructure stimulus policy in Pittsburgh on Wednesday. The White House executives revealed on Tuesday (30th) that the infrastructure bill will be introduced in the form of a long-term plan of $2 trillion for 8 years. In addition, the corporate tax will be increased to 28%. , To cover huge government expenditures.
Bloomberg quoted sources as reporting that White House economic adviser Brian Deese told senior members of Congress on Tuesday that Biden’s infrastructure bill is about US$2 trillion and is an eight-year stimulus policy.
Another source said that in order to raise funds, the corporate tax rate will be raised from 21% to 28% for a period of 15 years, and a minimum tax rate will be levied on the profits of multinational companies.
2. BlackBerry Q4 earnings report is not as expected
BlackBerry (BB-US) announced the fourth quarter financial report last year after the market on Tuesday (30th). Although the sales of QNX automotive software increased, the performance did not meet the expectations of Wall Street analysts.
BlackBerry lost US$315 million in the fourth quarter of last year and lost US$0.56 per share. After adjusting for the value of convertible bonds, profits increased by more than US$250 million. Earnings per share were US$0.03, which was lower than the adjusted earnings per share of US$0.09 in the same period of the previous year. . Revenue fell by approximately 25% to US$210 million, and adjusted revenue was US$215 million.
BlackBerry CEO John Chen said that part of the reason why revenue was not as good as expected was that because it was negotiating a patent sale with a North American company, the patent content was related to mobile communication devices and wireless network equipment. Therefore, the business in the fourth quarter Restricted activities, coupled with accounting standards, led to poor revenue performance.
3. Volvo’s electric car Polestar plans to be launched in Hong Kong or the United States this year
According to sources familiar with the matter quoted by Bloomberg, the electric car manufacturer Polestar, which is controlled by Volvo and its shareholder Geely Holding Group, is considering the option of public listing this year and does not rule out listing through SPAC.
People familiar with the matter said that Polestar is working with a consultant to study whether to IPO in the United States or Hong Kong, or merge with a special purpose acquisition company (SPAC) listing plan. Regardless of the method chosen, it is estimated that the electric car manufacturer’s valuation may exceed $10 billion.
In addition, Polestar is considering a new round of financing, which raised 500 million US dollars last year. People familiar with the matter said that discussions are still ongoing and Polestar may still change its financing plan.
4. Amazon develops new chips
According to the first report of “The Information”, Amazon (AMZN-US) is developing a chip to power the hardware switches that transmit data on the network, so that some key technologies are in the hands of its own company.
According to the report, these customized chips will help improve its internal infrastructure and AWS. Amazon’s acquisition of Israeli chip manufacturer Annapurna Labs for US$350 million in 2015 is an important layout for this.
5. Lululemon online sales surge 92%
Sportswear brand Lululemon (LULU-US) announced the fourth quarter financial report of last year on Tuesday (30th). Due to the success of online sales and the doubling of direct marketing (DTC), revenue and profit were better than analysts expected.
Lululemon’s fourth-quarter revenue increased by about 24% annually to 1.73 billion US dollars, better than the 1.66 billion US dollars predicted by Refinitv analysts. Net profit increased by approximately 11% from US$298 million in the same period of the previous year to US$329.8 million. Adjusted EPS was US$2.58, which was better than analysts’ expectations of US$2.49.
Lululemon’s online sales surged by 92% in the fourth quarter of last year, reflecting changes in consumer shopping habits during the COVID-19 pandemic. Sales of women’s products increased by 19%, and men’s products increased by 17%. By region, revenue in the North American market increased by 21%, and global sales increased by 47%.