Here are five things to know before Tuesday, January 19:
1.- Stock trading in futures higher than Yellen’s testimonial
Stock futures were higher on Tuesday when Janet Yellen, Joe Biden’s nominee for chairman of the Treasury Secretary, was ready to tell Congress that lawmakers must do more to bring the U.S. economy out of the recession triggered by the coronavirus pandemic.
Contracts linked to the Dow Jones Industrial Average were up 189 points, S&P 500 futures were up 26 points and Nasdaq futures gained 116 points.
Yellen, who chaired the Federal Reserve from 2014 to 2018, will tell the Senate Treasury Committee that Congress “needs to act big” on the next coronavirus relief package with such a low funding cost.
Yellen’s confirmation hearing before the Senate Finance Committee begins at 10 a.m.ET.
“Economists don’t always agree, but I think there is now a consensus: Without further action, we now risk a longer, more painful recession – and later long-lasting scars of the economy,” Yellen said Tuesday. prepared comments. “In the coming months we will need more help to distribute the vaccine; reopen schools; to help states keep firefighters and teachers employed. “
Biden last week unveiled a $ 1.9 trillion Covid-19 aid package that includes $ 1,400 direct stimulus payments, expanded and enhanced unemployment benefits, a moratorium on deportations and executions through September, and funds for the deployment of vaccines.
2. – Tuesday Economic Calendar: Goldman Sachs and Netflix earnings
bank of America (BAC) – Request report reported fourth quarter earnings of 59 cents a share versus 74 cents a share a year earlier.
The bank said it would release about $ 828 million in reserves, allowing it to pay an 18 cents-a-share dividend for the fourth quarter, and unveiled a $ 2.9 billion share buyback plan.
Goldman Sachs (GS) – Request report earned $ 12.08 a share in the fourth quarter, surpassing Wall Street expectations of $ 7.39.
Net sales for the period were $ 11.74 billion, up 18% from a year earlier.
The earnings will also be released via Netflix on Tuesday (NFLX) – Request report, JB Hunt Transport Services (JBHT) – Request report, Halliburton (THING) – Request report, Charles Schwab (SCHW) – Request report, Interactive brokers (IBKR) – Request report, State Street (No) – Request report and Comerica (CMA) – Request report.
Reports will be released by UnitedHealth later in the week (UNH) – Request report, Procter & Gamble (PG) – Request report, Morgan Stanley (MRS) – Request report, United Airlines (UAL) – Request report, Intel (INTC) – Request report and international business machines (IBM) – Request report.
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The economic calendar in the US is light on Tuesday. Unemployment claims, start of housing and sale of existing homes will be released later this week.
3. – Lumentum buys Coherent for $ 5.7 billion
Lumentum Holdings (LITE) – Request report agreed to acquire lasermaker Coherent (COHR) – Request report for $ 5.7 billion.
The Wall Street Journal had reported the deal could be announced this week.
Under the terms of the agreement, Coherent’s shareholders will receive $ 100 per share in cash and 1,1851 Lumentum common stock for each share they own, the companies said in a statement.
The transaction represents a 49% premium over Coherent’s closing price on Friday.
Shares of Coherent were up 35.02% on Tuesday to $ 205.17 in premarket trading. The stock has fallen by about 10% in the last 12 months. Shares of Lumentum, meanwhile, were up 1.58% to $ 108; its stock is up about 40% in the past year.
Coherent makes lasers used in medical and scientific equipment, industrial applications, and semiconductor manufacturing. Lumentum mainly makes optical components that are used in cloud networks, data transmission and submarine communications.
4.- Tesla begins delivery of China-made Model Y crossover
(TSLA) – Request report (TSLA) – Request report has begun shipping its first Shanghai-made Model Y crossovers in China.
The electric vehicle company said via Twitter that “Model Y shipments in China have officially started.”
Tesla broke ground at its factory in Shanghai two years ago. Model Y is the second vehicle to be made at the factory.
About a year ago, Tesla started supplying the Model 3 sedan to the Chinese market. According to the China Passenger Car Association, the Model 3 was the best-selling electric car in China last year, with more than 138,000 units sold.
The long-haul model Y version sold in China starts at 339,900 yuan (about $ 52,400).
Analysts Dan Ives of Wedbush last week hiked his price target for Tesla from $ 751 to $ 950, raising the stock’s bull-case target to $ 1,250, saying that “the heart and lungs of the Tesla bull thesis around China.
Tesla rose 1.65% to $ 839.78 in premarket trading.
5. – Coronavirus – the latest
The number of confirmed deaths worldwide from Covid-19, the disease caused by the coronavirus, rose to 2.04 million, according to Johns Hopkins University. Confirmed cases of the virus around the world have risen to 95.6 million.
The death toll in the US is 399,003, the highest number in the world. The number of people infected in the US was nearly 24.1 million.
December was the deadliest month in the US before the pandemic, according to CNN, but January was going to get worse. More than 46,240 deaths from coronavirus in the US were reported in the first 15 days of January, which was already more than half of the approximately 77,500 recorded in all of December.
President-elect Joe Biden’s new administration will reject Donald Trump’s move to relax travel bans related to the coronavirus for non-US citizens arriving from the European Union, the UK and Brazil.
Trump decided to revoke the ban that took effect on Jan. 26, after the Centers for Disease Control issued an injunction last week requiring all air travelers to submit negative test results for the coronavirus or provide evidence that they had recovered from the disease.
Biden’s press secretary, Jen Psaki, said the president-to-be not only wants to lift curbs, but also has plans to strengthen public health measures around international travel.