Congress agrees to $900 billion Covid stimulus deal after months of failed negotiations [CNBC]
The relief plan includes direct payments of $600 to most adults and $600 per child, Pelosi and Schumer said in a statement…. The Democrats said it would put $284 billion into Paycheck Protection Program small business loans, and include funds for loans from small and minority-owned lenders…. It would also add a $300 federal unemployment supplement and temporarily keep in place pandemic-era programs that expanded unemployment insurance eligibility….
The deal came after a last-second fight over a Republican-backed provision that would have restricted the Federal Reserve’s emergency lending powers. Lawmakers eventually reached a deal to wind down lending facilities created by the CARES Act at the end of the year, repurpose more than $400 billion left over in the programs and bar the creation of identical provisions in the future.
Tesla shares fall more than 3% as it enters the S&P 500 with 1.69% weighting, fifth largest [CNBC]
Tesla shares have soared more than 730% this year, bringing the company’s market capitalization to more than $658 billion…. Tesla’s entry is the largest ever for the influential stock index, and perhaps the most dramatic.
Investors, including passive fund managers and active managers that use the S&P 500 as a benchmark, rushed into Tesla shares in the final run-up, pushing the stock up nearly 6% on Friday to close at an all-time high of $695 a share. Over 200 million Tesla shares changed hands during that single session, more than quadrupling the 30-day average trading volume.
Wall Street Poised for $11 Billion in Buybacks With Fed Decision [Bloomberg]
JPMorgan Chase & Co. and Morgan Stanley said in statements they plan to resume buybacks starting next quarter. Citigroup Inc. and Goldman Sachs Group Inc. said they also intend to resume purchases next year, while Bank of America Corp. Chief Executive Officer Brian Moynihan has said the firm plans to buy back stock “as soon as we’re allowed to….”
Fed Vice Chairman for Supervision Randal Quarles said the banking system has been “a source of strength during the past year,” adding that the second round of stress tests “confirm that large banks could continue to lend to households and businesses even during a sharply adverse future turn in the economy.” None of the largest banks fell beneath their capital minimums under the Fed test’s hypothetical scenarios.
Scoop: SoftBank to file for SPAC on Monday [Axios]
SoftBank on Monday will file to raise between $500 million and $600 million via an IPO of its first SPAC…. The investment giant is said to be prepping at least two additional SPACs….
Hedge funds delivered their worst performance against stock benchmarks since 2011 by one measure [MarketWatch]
“This poor performance appears to be driven by the bigger funds. 2020 represents the worst year since records began in 2005 in terms of the underperformance of big hedge funds relative to the smaller ones,” wrote analysts at J.P. Morgan’s global quantitative team, led by Nikolaos Panigirtzoglou…. “In a year where equities posted double-digit returns and with bonds returning more than 5%, the hurdle for alpha generation by active investors has been high,” the J.P. Morgan analysts wrote.
Clueless About 2020, Wall Street Forecasters Are at It Again for 2021 [NYT]"
It would be unfair to highlight the forecasts for this bizarre year if the record in the past had been impressive, but that just isn’t the case…. Such wildly incorrect predictions have been the norm since 2000, I found, after reviewing the median annual stock predictions made by Wall Street analysts each December….
Each December, since 2000, the median forecast never called for a stock market decline over the course of the following calendar year. But the market did fall in six separate years in that period, or about 29 percent of the time.
Dalios mourn death of son in Greenwich crash [Connecticut Post]
Devon Dalio was 42 at the time of his death. He was the Dalios’ eldest son and was the co-founder of P-Squared Management Enterprises, a private equity firm that is focused on small- and mid-market health care technology companies….
On Thursday afternoon, the 2016 Audi driven by Devon Dalio crashed into the Verizon store in the Riverside Commons shopping center on East Putnam Avenue near Interstate 95’s Exit 5.
The gas tank likely ruptured as the car entered the store, causing the car to burst into flames, Fire Chief Joseph McHugh said Friday afternoon.