Wall Street Today | Peloton purchase may pose regulatory 'Headache' for techs

Stocks looked set for a cautious start Monday amid intensifying bets on Federal Reserve interest-rate hikes and as traders await the resumption of trading in China after a weeklong holiday.

Futures for Japan and Australia fell while Hong Kong's edged up. Global shares delivered more volatility Friday but also ended with their best weekly performance of the year, bolstered by $Amazon (AMZN.US)$'s earnings.

U.S. inflation is probably about to spike yet again

Inflationary pressures in the U.S. continued to heat up at the start of the year, data are expected to show, likely putting a Federal Reserve interest-rate increase next month on autopilot.

The consumer price index probably jumped 7.3% in January from a year ago, the largest annual advance since early 1982, according to the median projection in a Bloomberg survey of economists. Excluding volatile energy and food categories, the CPI is projected to have risen 5.9%.

A big tech trade is losing its luster

The stock market's popular FAANG trade is starting to show cracks. Investors say they are reconsidering their approach to trading big technology stocks after a week marked by giant swings in share prices. They are more closely sifting through the winners and losers to try to identify those that might thrive over the next year.

Gone, several investors said, are the days in which the stocks logged a simultaneous ascent and attracted crowds of fans. Some have become victims of rising interest rates, changing consumer tastes and stretched valuations. Those that have fallen short of high investor expectations have paid dearly in the market.


Peloton purchase may pose regulatory 'Headache' for a tech giant

$Peloton Interactive (PTON.US)$ -- the early pandemic home-fitness darling that's become a potential takeover target following a sharp plunge in its stock price -- could find a challenging climate if it opts for a deal with a big-technology firm.

One key consideration is regulatory scrutiny. There's a chill against large transactions at the moment in Washington, where technology companies are being probed by regulators for their reach and influence and the Federal Trade Commission recently sued to block an acquisition by $NVIDIA (NVDA.US)$.

This is the worst airline in the U.S., according to a new ranking

When it comes to low-cost airlines, American fliers usually praise $JetBlue Airways (JBLU.US)$, and despise $Spirit Airlines (SAVE.US)$ and Frontier Airlines. But if you took to the sky in 2021, JetBlue might have let you down — with large numbers of brutal, hours-long delays and frustrating cancellations, according to a new study.

The Long Island City, New York-based airline recently dropped to the lowest spot on The Wall Street Journal's annual ranking of U.S. airlines, falling behind both Spirit and Frontier. American Airlines almost incurred a similar fate, tying with Frontier for third-to-last.

The 'Bitcoin Family' immigrates to Portugal for its 0% tax on cryptocurrencies

Didi Taihuttu, patriarch of the so-called 'Bitcoin Family,' is setting down roots in Portugal, Europe's ultimate crypto tax haven.

Settling down is a big deal for the Dutch family of five, who have traveled the world for the last five years. But after spending time in 40 countries, Portugal — which is one of the last places in Europe with a 0% tax on bitcoin — was just too enticing a destination to ignore.

Cannabis stocks suffer as US federal legalisation stalls

Cannabis stocks have tumbled in the year since Joe Biden took office, as hopes of an imminent federal legalisation of marijuana in the US fade and investors remain wary of a sector that has limited access to consumers and funding.

Pot consumption soared during the pandemic. Revenues have grown five fold for US-listed companies since 2019, with demand for recreational cannabis fuelled by lockdowns. The global market for cannabidiol, mediclinal and recreational cannabis hit $37bn last year, according to market intelligence firm Prohibition Partners.

Delta asks the Justice Department to put unruly travelers on a 'no-fly' list

$Delta Air Lines (DAL.US)$'s CEO Ed Bastian asked the U.S. Department of Justice to put convicted unruly travelers on a national "no-fly" list, the airline's latest effort to deter aggressive behavior on flights that have surged during the pandemic.

Bastian said that while such incidents are rare, a "no-fly" list "will help prevent future incidents and serve as a strong symbol of the consequences of not complying with crew member instructions on commercial aircraft," he wrote to Attorney General Merrick Garland in a letter dated Jan. 3.

Source: Bloomberg, WSJ, CNBC