US markets are set to open mixed on Tuesday in some signs of a let up in recent declines. The big trends of a rising dollar and falling oil prices have accelerated into the New Year, creating uncertainty and toppling equity markets in the process.
Banking shares were under pressure yesterday. A Morgan Stanley wealth management employee was fired for stealing close to 10% of its top client’s data. JPMorgan Chase & Co (NYSE:JPM) became the first bank to settle a lawsuit filed against 12 major banks for currency market rigging.
The removal of uncertainty over the size of the FX fine will be welcomed but it’s another reminder that banks live in an era of punishment for past misdeeds. As the first to settle JP Morgan’s may prove to be one of the smallest, some of the bigger infringers could pay a lot more.
Facebook Inc (NASDAQ:FB) has bought a voice recognition start up ‘Wit.ai’ to add it its collection of acquisitions including the $19bn purchase of WhatsApp. Zuck and his team are looking to turn user’s actual speech into another source of data to be harvested and turned into more targeted ads to increase the likelihood of a click and revenue for Facebook.
Shares in AOL Inc (NYSE:AOL) are expected to open higher on Tuesday on the prospect of a tie-up with Verizon Communications Inc (LONDON:VZC) which could lead to an acquisition. Verizon are looking to expand online content including mobile video services.
Futures suggest the:
S&P 500 will open flat at 2,020 with the
Dow 30 expected to open 7 points higher at 17,508 and the
NASDAQ Composite 3 points lower at 4,157.
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