Futures point to a negative start
U.S. stock markets look poised to start the week in the red territory amid concerns that surging coronavirus cases and new lockdowns could hurt economic growth in the coming months.
According to Johns Hopkins University, the number of confirmed global coronavirus cases have risen to 67,118,222 while deaths from the disease caused by the virus have climbed to nearly 1.54 million.
In California, nearly 85%, or about 33 million of the state’s 39 million residents are now under sweeping new restrictions as part of its latest effort to curb the spread of the virus.
Gov. Gavin Newsom has ordered all bars, casinos, hair salons, barbershops, and outdoor and indoor playgrounds to close in regions of California where capacity at ICUs falls below 15%.
By 5:20 a.m. ET, futures tied to the blue-chip Dow were indicated 107.5 points, or 0.36% to 30,090.5. Those for the S&P 500 dropped 13.88 points, or 0.38% to 3,684.12 while the tech-heavy Nasdaq 100 futures were dropped 14.88 points, or 0.12% to 12,511.12.
Airbnb reportedly mulls upping its IPO price range
Airbnb is planning to raise the price range for its initial public offering, the Wall Street Journal reported on Sunday, citing people familiar with the matter. The Journal said that the home-rental unicorn intends to increase the range to between $56 and $60 per share, up from the initial target of $44 to $50.
At the higher end of the new price range, the company would raise up to $3 billion and have a fully diluted valuation, which includes securities such as options and restricted stock units, of $42 billion.
Airbnb is expected to go public on Thursday, Dec. 10. Shares of the company will trade under the ticker symbol “ABNB” on the Nasdaq.
U.S.-China tensions resurface as Washington targets Beijing officials over Hong Kong
Meanwhile, U.S.-China were reignited early Monday after Reuters reported President Donald Trump’s administration is planning to hit at least a dozen Chinese Communist Party officials with economic sanctions over their alleged involvement in Beijing’s disqualification of elected opposition leaders in Hong Kong.
Unnamed sources told Reuters that the U.S. departments of Treasury and State were preparing sanctions on Chinese official in response to China’s crackdown on dissent in Hong Kong.
China’s Foreign Ministry spokesperson Hua Chunying protested the plan and said it was the result of “extremist anti-China forces in the United States” acting “out of strong ideological bias and deep-seated Cold-War mentality.”
The report contrasts with news last week that a deal was being prepared to allow the former Huawei chief financial officer to return to China instead of being extradited from Canada to face trial in the United States.
Mastercard, Visa investigating allegations against Pornhub
In other news, Mastercard (NYSE: MA) and Visa (NYSE: V) are reviewing their business ties with Pornhub.com parent-company MindGeek after allegations that the pornographic site distributes videos depicting rape and underage sex.
New York Times opinion columnist Nicholas Kristof wrote on Friday that Pornhub contains rape scenes, revenge porn and other explicit videos taken without the consent of participants.
“We are investigating the allegations raised in the New York Times and are working with MindGeek’s bank to understand this situation, in addition to the other steps they have already taken,” Mastercard said in a statement.
Visa also issued a statement saying: “We are aware of the allegations, and we are actively engaging with the relevant financial institutions to investigate, in addition to engaging directly with the site’s parent company, MindGeek.”
In a statement to Reuters, Pornhub dismissed the claims saying that any assertion that the platform allows CSAM (child sexual abuse material) is “irresponsible and flagrantly untrue.”
Mastercard and Visa vowed to take action if the claims are substantiated.
