“Last September the SEC raised the stock ownership threshold at which investors can force a shareholder vote on specific issues” — Paul Ebeling
Friday, Senate Democrats introduced a resolution to rescind the rule they say curbs shareholder voting rights, their 2nd move aimed at unraveling business regulations introduced by President Trump.
Introduced by Senate Banking Chairman Sherrod Brown (D-OH) the resolution aims to undo a Securities and Exchange Commission (SEC) rule which investors say curbs their power to push for corporate action on issues like climate change and compensation.
The resolution was introduced under the Congressional Review Act which requires only a simple majority vote in both houses of Congress to reverse recently finalized rules. Democrats hold slim majorities in the House of Representatives and the Senate.
“These rules were yet another ploy by The Trump Administration to undermine shareholder democracy. Last year’s changes to the SEC rule on shareholder proposals made it much harder for working families and investors to hold corporate management accountable,” Senator Brown said in a statement late Friday.
“Congress must repeal the rule. We also need to find ways to increase shareholder participation and to make executives more accountable.”
The SEC, now led by Democratic acting chair Allison Lee, who voted against the September rule, declined to comment.
Friday, the benchmark US stock market indexes finished at: DJIA 33,072 +4533.40, NAS Comp 13,138.75 +161.05, S&P 500 3,74.54 +65.02, and the Russell 2000 added+1.8% at 2,221.48
Volume: Trade on the NYSE came in at 1.1-B/shares exchanged
The final reading of the University of Michigan Consumer Sentiment (MSI) survey for March increased to 84.9 from 83.0 in the preliminary reading. The final March reading puts the series at a 1-yr high.
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish with a Very Bullish bias at the wk ended 26 March 2021.
- Russell 2000 +12.5% YTD
- DIJI +8.1% YTD
- S&P 500 +5.8% YTD
- NAS Comp +1.9% YTD
Looking Ahead: Investors will receive no economic data of note scheduled Monday.
Have a healthy weekend, Keep the Faith!