Here are five things you need to know for Tuesday, January 19th:
1. – Stock market futures higher before Yellen’s testimony
Equity futures were higher on Tuesday when Janet Yellen, president-elect Joe Biden’s nominee as secretary of the Treasury, was prepared to tell Congress that lawmakers need to do more to bring the U.S. economy out of the recession that plagues the coronavirus pandemic.
Contracts linked to the Dow Jones industrial average rose 189 points, S&P 500 futures rose 26 points and Nasdaq futures rose 116 points.
Yellen, who served as chair of the Federal Reserve from 2014 to 2018, will tell the Senate Finance Committee that Congress must “act big” on the next relief package for the coronavirus with borrowing costs so low.
The confirmation hearing of Yellen before the Finance Committee of the Senate begins at 10:00 a.m.
“Economists do not always agree, but I think there is a consensus now: without further action, we risk a longer, more painful recession – and later the economy will suffer long-term consequences,” Yellen said on Tuesday. prepared remarks. “Over the next few months we will need more help to distribute the vaccine; to reopen schools; to help states keep firefighters and teachers at work. ”
Biden last week unveiled a $ 1.9 billion Covid-19 emergency relief package that includes $ 1,400 direct stimulus payments, expanded and enhanced unemployment benefits, a moratorium on evictions and denunciations through September, and vaccine deployment funds.
2. – Tuesday’s Economic Calendar: Goldman Sachs and Netflix Earnings
Bank of America (BAC) – Get report fourth-quarter earnings of 59 cents per share from 74 cents a share a year earlier.
The bank said it would release $ 828 million in reserves, which would allow it to pay an 18-cent dividend per share for the fourth quarter, and announced a $ 2.9 billion repurchase plan.
Goldman Sachs (GS) – Get report earned $ 12.08 per share in the fourth quarter, beating Wall Street’s expectations of $ 7.39.
Net revenue for the period was $ 11.74 billion, 18% higher than a year earlier.
The earnings will also be announced on Tuesday by Netflix (NFLX) – Get report, JB Hunt Transport Services (JBHT) – Get report, Halliburton (HAL) – Get report, Charles Schwab (SCHW) – Get report, Interactive Brokers (IBKR) – Get report, Staatstraat (STT) – Get report in Comerica (OBA) – Get report.
Reports will be released by UnitedHealth later this week (UNH) – Get report, Procter & Gamble (PG) – Get report, Morgan Stanley (MS) – Get report, United Airlines (UAL) – Get report, Intel (INTC) – Get report and international business machines (IBM) – Get report.
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The US economic calendar is light on Tuesday. Unemployed claims, housing and existing home sales will be announced later this week.
3. – Lumentum will buy coherently for $ 5.7 billion
Lumentum Holdings (LITE) – Get report agreed to acquire the manufacturer Coherent (COHR) – Get report for $ 5.7 billion.
The Wall Street Journal reported that the deal could be announced this week.
Under the terms of the agreement, cohesive shareholders will receive $ 100 per share in cash and 1,1851 shares of Lumentum ordinary shares for every cohesive share they own, the companies said in a statement.
The deal represents a 49% premium to Coherent’s closing price on Friday.
Shares of Coherent rose 35.02% on Tuesday to $ 205.17 in trading on the market. The share has fallen by about 10% over the past 12 months. Lumentum shares, meanwhile, rose 1.58% to $ 108; its share has risen about 40% in the past year.
Coherent manufactures lasers used in medical and scientific equipment, industrial applications and semiconductor manufacturing. Lumentum mainly manufactures optical components used in cloud networking, data transmission and submarine communications.
4. – Tesla starts manufacturing Model Y Crossover in China
(TSLA) – Get report (TSLA) – Get report begins delivery of its first Model Y crossovers in Shanghai offered in China.
The company for electric vehicles said via Twitter that “delivery of Model Y in China has officially begun.”
Tesla broke ground at its Shanghai plant two years ago. Model Y is the second vehicle manufactured at the factory.
About a year ago, Tesla started delivering the Model 3 sedan to the Chinese market. According to the China Passenger Car Association, the Model 3 was the best-selling car in China last year, with more than 138,000 sales.
The Model Y long-range version sold in China starts at 339,900 yuan (about $ 52,400).
Analysts Dan Ives of Wedbush last week raised his price target on Tesla from $ 751 to $ 950, raising the bull’s target of the stock to $ 1,250 because he said ‘the hearts and lungs of the Tesla thesis are all around China ‘.
Tesla rose 1.65% to $ 839.78 in pre-trading.
5. – Coronavirus – The latest
According to Johns Hopkins University, the number of confirmed worldwide deaths due to Covid-19, the disease caused by the coronavirus, has risen to 2.04 million. Confirmed cases of the virus around the world have risen to 95.6 million.
The US death toll is 399,003, the most in the world. The number of infected people in the US was almost 24.1 million.
According to CNN, while December was the deadliest month in the U.S. for the pandemic, the pace of January was even worse. More than 46,240 U.S. coronavirus deaths were reported in the first 15 days in January, which was already more than half of the approximately 77,500 recorded throughout December.
Electoral President Joe Biden’s incoming government will reject Donald Trump’s move to ban coronavirus – related travel bans for non – US citizens arriving from the European Union, the United Kingdom and Brazil.
Trump began repealing the ban on January 26 after the Centers for Disease Control issued an order last week requiring all air travelers to submit negative test results for the coronavirus or provide evidence they had recovered from the disease.
Biden’s press secretary Jen Psaki said the incoming president, in addition to not lifting the curb, intends to step up public health measures around international travel.