NYSE, Nasdaq sue SEC over planned overhaul of public data , stocks snap six-day winning streak

Nasdaq Inc and the New York Stock Exchange have each sued the Securities and Exchange Commission, seeking to block a plan by the regulator to overhaul public data feeds that broadcast stock prices to investors, court filings show.

Under the SEC plan, approved in December, supply and demand data for stocks would be added to public feeds, broadening access to the information which the exchanges currently sell to professional traders at a premium.

“Nasdaq believes the SEC exceeded its authority by adopting an ill-considered remake of market structure,” a Nasdaq spokeswoman said in an emailed statement. The plan “would make equity markets overly complex and increase hidden costs for investors”, the statement said.

The filings were made in the U.S. Court of Appeals for the District of Columbia Circuit.

Meanwhile, U.S. stock rose slightly in overnight trading on Tuesday following the regular session that snapped a six-day winning streak on Wall Street.

Dow futures rose 75 points. S&P 500 futures gained 0.25% and Nasdaq 100 futures rose 0.24%.

Better-than-expected earnings from Twitter, Lyft, Cisco Systems, Mattel, and Yelp boosted sentiment on Wall Street. Lyft reported signs of a recovery from the Covid-19 pandemic.

On Tuesday, stocks snapped a six-day winning streak, with the S&P 500 dropping 0.1%. The Dow Jones Industrial Average lost about 10 points.

The Nasdaq Composite was the relative outperformer, gaining 0.15% as Facebook, Microsoft, and Netflix all closed higher.

The small-cap benchmark Russell 2000 gained 0.4% to an all-time high, bringing the index’s weekly gain to nearly 3%. Investors are betting on small caps as a proxy for economic recovery from the pandemic.

On the Coronavirus front, President Biden on Tuesday met with the chief executives of some of the country’s largest business in the Oval Office to discuss his $1.9 trillion stimulus plan.

Among those in attendance were JPMorgan’s Jamie Dimon, Walmart’s Doug McMillon, Gap’s Sonia Syngal, and Tom Donohue of the U.S. Chamber of Commerce.

The president stressed his focus on jobs and his commitment to work on a bipartisan basis, signaling he wasn’t just going to push a stimulus plan through that wasn’t supported.

Biden said that the group would talk about “infrastructure down the road and also about the minimum wage.”