Here are five things you should know for Tuesday, January 19:
1. – Trading higher equity futures prior to Yellen certification
Stock futures rose on Tuesday as Janet Yellen, President-elect Joe Biden’s nominee of the Treasury, prepared to tell Congress that lawmakers must do more to pull the US economy out of the recession caused by the coronavirus pandemic.
And contracts linked to the Dow Jones Industrial Average rose 189 points, futures for the S&P 500 rose 26 points, and Nasdaq futures rose 116 points.
Yellen, who served as chairman of the Federal Reserve from 2014-2018, will tell the Senate Finance Committee that Congress should “act aggressively” on the next coronavirus relief package as borrowing costs fall.
Yellen’s confirmation hearing will begin before the Senate Finance Committee at 10 a.m. ET.
“Economists don’t always agree, but I think there is a consensus now: Without further action, we risk a longer and more painful recession now – and long-term scars for the economy at a later time,” Yellen will say Tuesday, according to her notes prepared. “Over the next few months, we will need more aid to distribute the vaccine; to reopen schools; to help countries keep firefighters and teachers at work.”
Biden last week unveiled a $ 1.9 trillion Covid-19 relief package that includes direct stimulus payments of $ 1,400, expanded and improved unemployment benefits, a moratorium on evictions and mortgage foreclosures through September, and funding for vaccine deployment.
2. – Tuesday’s economic calendar: Goldman Sachs and Netflix earnings
American Bank (Buck) – Get a report It posted a fourth-quarter earnings of 59 cents a share, compared to 74 cents a share a year earlier.
The bank said it would release about $ 828 million in reserves, allowing it to pay out a cash dividend of 18 cents a share for the fourth quarter, and unveiled a $ 2.9 billion share buyback plan.
Goldman Sachs (P) – Get a report It earned $ 12.08 a share in the fourth quarter, beating Wall Street’s forecast of $ 7.39.
Net revenue for the period was $ 11.74 billion, up 18% over the previous year.
Earnings will also be released on Netflix Tuesday (NFLX) – Get a reportGB Hunt Transportation Services (JBHT) – Get a report, Halliburton (Thing) – Get a reportCharles Schwab (SCHW) – Get a reportInteractive Mediators (IBKR) – Get a report, State Street (No) – Get a report And comerica (CMA) – Get a report.
Later in the week, UnitedHealth will release reports (United nations) – Get a reportProcter & Gamble Company (PG) – Get a reportMorgan Stanley (Multiple sclerosis) – Get a reportUnited Airlines (UAL) – Get a report, Intel (INTC) – Get a report And international business machines (IBM) – Get a report.
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The Economic calendar Tuesday is light in the United States. Unemployment claims, housing starts and existing home sales will be released later in the week.
3. – Lumentum buys Coherent for $ 5.7 billion
Luminetum Holdings (low fat) – Get a report Agreed to acquire a Coherent laser maker (COHR) – Get a report For $ 5.7 billion.
The Wall Street Journal has reported that the deal may be announced this week.
The two companies said in a statement that under the terms of the agreement, consolidated shareholders would receive $ 100 per share in cash and 1,1851 Lumentum shares of ordinary shares for each of their consolidated shareholders.
The deal represented a 49% premium to Coherent’s closing price on Friday.
Coherent shares rose 35.02% to $ 205.17 in pre-market trading on Tuesday. The stock has fallen nearly 10% over the past 12 months. Meanwhile, Lumentum’s shares rose 1.58% to $ 108. Its stock has gained around 40% over the past year.
Coherent makes lasers used in medical and scientific equipment, industrial applications, and semiconductor manufacturing. Lumentum mainly manufactures optical components used in cloud networks, data transmission and marine communications.
4. – Tesla begins delivery of the Chinese-made Y crossover model
(TSLA) – Get a report (TSLA) – Get a report Deliveries of the first Model Y crossovers made in Shanghai, China, have commenced.
The electric car company said via Twitter that “delivery of the Model Y in China has officially begun”.
Tesla started working at its Shanghai plant two years ago. The Model Y is the second factory built vehicle.
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 Vehicle Association.
The long-range model Y sold in China starts at 339,900 yuan (about $ 52,400).
Analysts raised Dan Ives from Wedbush last week for him Price target On Tesla to $ 950 from $ 751, with the Taurus Case target for the stock boosting to $ 1,250, as he said, “The hearts and lungs of Tesla’s thesis of the bull are centered on China.”
Tesla was up 1.65% to $ 839.78 in pre-market trade.
5.- Coronavirus – the most recent
The number of confirmed global deaths from Covid-19, the disease caused by the Coronavirus, has risen to 2.04 million, according to Johns Hopkins University. Confirmed cases of the virus worldwide have risen to 95.6 million.
The death toll in the United States is 399,003, which is the largest number in the world. The number of infected people in the United States has reached nearly 24.1 million.
According to CNN, while December was the deadliest month in the United States for the pandemic, January was on track to be worse. More than 46,240 coronavirus deaths were reported in the United States in the first fifteen days of January, which is already more than half of the nearly 77,500 cases recorded in the whole of December.
The incoming administration of President-elect Joe Biden will reject Donald Trump’s move to relax the coronavirus-related travel ban for non-US citizens from the European Union, the United Kingdom and Brazil.
Trump moved to rescind the ban that began on January 26, after the CDC last week issued an order requiring all air travelers to present negative test results for the coronavirus or to provide evidence that they have recovered from the disease.
Biden’s press secretary, Jane Psaki, said that in addition to not lifting restrictions, the incoming president plans to boost public health measures around international travel.
