The Economy
OPEC, Russia Set To Extend Oil Supply Cuts
The OPEC and Russia are set to extend the oil supply cuts of 1.8 million barrels per day until the end of 2018 but may review the decision again in June if the market overheats. On Wednesday, Benchmark Brent and U.S. crude prices remained flat after two days of declines.
Bitcoin Not Big Enough To Destabilize Economy, Says Fed Nominee
Federal Reserve chair nominee Jerome Powell stated on Wednesday that the increasingly popular cryptocurrency is not big enough to upset the economy should it fall. On a side note, he added that blockchain — bitcoin’s underlying technology — could be something that “may have significant applications in the wholesale payments part of the economy.”
The Markets
Nasdaq Declines On Tech-Stock Selloff
The Nasdaq Composite index fell more than 1% on Wednesday as investors sold off technology stocks and moved into financials. The shift to financial stocks came as a result of the Fed hinting at an interest rate hike in December.
Bitcoin Reaches Record High Once Again, Now Tops $11,000
On Wednesday, the price of bitcoin reached a record high for the sixth day in a row, topping the $11,000 mark. The cryptocurrency rose by as much as 15% during the day.
Yesterday, London-based Blockchain.info, one of the biggest global bitcoin wallet providers, added a record number of new users, taking its user base to more than 19 million.
Nasdaq To Launch Bitcoin Futures In 2018
According to Nasdaq officials, the exchange plans to launch bitcoin futures as early as Q2 2018. These bitcoin futures would be different from the ones proposed by CBOE and CME, as Nasdaq would base its price off of 50 bitcoin sources from around the world instead of just a few.
Apple Files Countersuit Against Qualcomm
On Wednesday, Apple Inc. (NASDAQ:AAPL) filed a countersuit against Qualcomm Inc. (NASDAQ:QCOM) alleging that Qualcomm’s Snapdragon processors infringe on Apple’s patents. This is the latest development in an ongoing legal dispute between the companies that started in January when Apple sued Qualcomm for nearly $1 billion in patent royalty rebates that Qualcomm allegedly withheld from Apple.
AT&T Determined To Push Through Time Warner Deal
AT&T (NYSE:T) is still determined to push through its purchase of Time Warner Inc. (NYSE:TWX), arguing that the deal was “pro-competitive” and “pro-consumer”, denying allegations by the U.S. Justice Department that the deal breaks antitrust law.
Top Active Stocks
The big tech selloff on Wednesday was highlighted by NVIDIA Corp. (NASDAQ:NVDA), down 6.8% at market close. Yesterday, an analyst at Mizuho Securities was quoted saying that the demand boost enjoyed by chip makers like NVIDIA from cryptocurrency mining would end soon.
Autodesk Inc. (NASDAQ:ADSK) was the biggest loser on the S&P 500, down a whopping 15.9%, following the AutoCAD maker’s weak revenue forecast for the coming quarter and announcement of a restructuring plan that includes a significant workforce cut.
Another tech stock that saw significant loss was Micron Technology Inc. (NASDAQ:MU), which was down for the third consecutive day amid concerns over the near-term pricing over memory chips.
For the gainers, Chipotle Mexican Grill (NYSE:CMG) shares went up 5.6% after the burrito chain said it would seek a new CEO to replace founder and chairman Steve Ells as part of its turnaround plans.
Both JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Corp. (NYSE:BAC) climbed by 2.3% on Wednesday, benefiting from investors’ shift toward financial stocks away from the tech sector.
Macy’s Inc. (NYSE:M) was up by another 8.2% as the retailer looks to bounce back for the upcoming holiday season. Earlier this week, Macy’s announced its plans to buy back up to $400 million of debt.
Featured image: Depositphotos/ ymgerman
