Here are five things you need to know by Tuesday, January 19th:
1. – Stock futures trading is superior to Yellen’s testimony
Stock futures rose on Tuesday as Janet Yellen, President-elect Joe Biden’s candidate for Treasury secretary, set out to tell Congress that lawmakers need to do more to get the U.S. economy out of the way. recession caused by the coronavirus pandemic.
Dow Jones Industrial Average-related contracts rose 189 points, the S&P 500 futures rose 26 points and the Nasdaq futures gained 116 points.
Yellen, who held the presidency of the Federal Reserve from 2014 to 2018, will tell the Senate Finance Committee that Congress must act heavily on the next coronavirus relief package with such low borrowing costs .
Yellen’s confirmation hearing before the Senate Finance Committee will begin at 10 a.m. in the EV.
“Economists don’t always agree, but I think there’s consensus now: without further action, we run the risk of a longer and more painful recession now, and a long-term healing of the economy later,” he said. Yellen will say Tuesday, she said. prepared comments. “Over the next few months, we will need more help distributing the vaccine; to reopen schools; helping states keep firefighters and teachers at work. ”
Last week, Biden unveiled a $ 1.9 trillion Covid-19 aid package that includes $ 1,400 direct stimulus, expanded and improved unemployment benefits, a moratorium on evictions and foreclosures through September and funds for the deployment of vaccines.
2. – Tuesday’s economic calendar: Goldman Sachs and Netflix Earnings
bank of america (BAC) – Get the report reported fourth-quarter earnings of 59 cents per share compared to 74 cents per share a year earlier.
The bank said it will release reserves worth about $ 828 million, which will allow it to pay a dividend of 18 cents a share during the fourth quarter, and unveiled a $ 2.9 billion share repurchase plan. dollars.
Goldman Sachs (GS) – Get the report it earned $ 12.08 per share in the fourth quarter, breaking Wall Street’s expectations of $ 7.39.
Net income for the period was $ 11.744 billion, up 18% from the previous year.
Earnings will also be posted Tuesday from Netflix (NFLX) – Get the report, JB Hunt Transport Services (JBHT) – Get the report, Halliburton (WHAT) – Get the report, Charles Schwab (SCHW) – Get the report, Interactive corridors (IBKR) – Get the report, State Street (No) – Get the report and Comerica (CMA) – Get the report.
Later in the week, UnitedHealth will issue reports (UNH) – Get the report, Procter & Gamble (PG) – Get the report, Morgan Stanley (MS) – Get the report, United Airlines (UAL) – Get the report, Intel (INTC) – Get the report and international business machines (IBM) – Get the report.
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The U.S. economic calendar on Tuesday is light. Unemployment claims, home starts and existing home sales will be posted later in the week.
3. – Lumentum to buy consistently for $ 5.7 billion
Lumentum Holdings (LITE) – Get the report agreed to acquire the coherent laser manufacturer (COHR) – Get the report for $ 5.7 billion.
The Wall Street Journal had reported that the deal could be announced this week.
Under the terms of the agreement, Coherent shareholders will receive $ 100 per cash share and 1,1851 Lumentum shares for each Coherent share they own, the companies said in a statement.
The transaction represents a 49% premium to Coherent’s closing price on Friday.
Coherent shares rose 35.02% to $ 205.17 in pre-market trading on Tuesday. Shares have fallen by about 10% in the last twelve months. Shares of Lumentum, meanwhile, rose 1.58% to $ 108; its shares have increased by about 40% over the last year.
Coherent manufactures lasers used in medical and scientific equipment, industrial applications and semiconductor manufacturing. Lumentum mainly manufactures optical components used in cloud networks, data transmission and underwater communications.
4. – Tesla begins to deliver the Y model made in China
(TSLA) – Get the report (TSLA) – Get the report has begun delivering its first Model Y crossovers manufactured in Shanghai to China.
The electric vehicle company said via Twitter that “Model Y deliveries to China have officially begun.”
Tesla opened ground at its Shanghai plant two years ago. The Model Y is the second vehicle manufactured at the plant.
About a year ago, Tesla began delivering the Model 3 sedan to the Chinese market. The Model 3 was the best-selling electric vehicle in China last year, with more than 138,000 sold, according to the China Passenger Association.
The long-range version of the Model Y sold in China starts at 339,900 yuan (about $ 52,400).
Wedbush analysts Dan Ives last week raised its price target at Tesla to $ 950 from $ 751, with the stock market target rising to $ 1,250, saying that “hearts and the lungs of the Tesla ox thesis are centered around China. “
Tesla was up 1.65% to $ 839.78 in pre-market trade.
5. – Coronavirus: the last
The number of confirmed global deaths from Covid-19, the disease caused by the coronavirus, rose to 2.04 million, according to Johns Hopkins University. Confirmed cases of the virus worldwide have increased to 95.6 million.
The death toll in the US is 399,003, the highest in the world. The number of infected people in the US was about 24.1 million.
According to CNN, while December was the deadliest month in the United States for the pandemic, January went from bad to worse. During the first 15 days of January, more than 46,240 coronavirus deaths were recorded in the United States, which was already more than half of the approximately 77,500 recorded throughout December.
The incoming administration of President-elect Joe Biden will reject Donald Trump’s decision to relax coronavirus-related travel bans for non-U.S. Citizens arriving from the European Union, the United Kingdom and Brazil.
Trump decided to rescind the bans on Jan. 26, after last week the Centers for Disease Control issued an order requiring all air travelers to submit negative coronavirus test results or submit tests that are they had recovered from the disease.
Biden press secretary Jen Psaki said, in addition to not lifting the sidewalk, that the incoming president plans to strengthen public health measures around international travel.