Here are five things you should know for Tuesday, January 19th:
1. – Bullish stock futures trading before Yellen’s testimony
Stock futures soared on Tuesday, with Janet Yellen, nominated by President-elect Joe Biden as Treasury Secretary, preparing to tell Congress that lawmakers should do more to lift the US economy out of the recession caused by 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 president of the Federal Reserve from 2014 to 2018, will tell the Senate Finance Committee that Congress must “act big” on the next coronavirus relief package at such low borrowing costs.
Yellen’s confirmation hearing before the Senate Finance Committee will begin at 10 am 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 scarring in the economy later,” Yellen said on Tuesday, according to she prepared observations. “In the coming months, we will need more help to distribute the vaccine; reopen schools; to help states keep firefighters and teachers working. ”
Last week Biden unveiled a $ 1.9 trillion Covid-19 aid package that includes $ 1,400 direct stimulus payments, extended and improved unemployment benefits, a moratorium on evictions and foreclosures until September and funds for deployment vaccines.
2. – Tuesday’s economic calendar: earnings from Goldman Sachs and Netflix
Bank of America (BAC) – Get report reported fourth quarter earnings of 59 cents per share, against 74 cents a share a year earlier.
The bank said it would release about $ 828 million in reserves, which would allow it to pay a dividend of 18 cents per share in the fourth quarter, and released a $ 2.9 billion share buyback plan.
Goldman Sachs (GS) – Get report earned $ 12.08 per share in the fourth quarter, exceeding Wall Street expectations of $ 7.39.
Net revenue for the period was $ 11.74 billion, an increase of 18% over the previous year.
The earnings will also be released 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, State Street (STT) – Get report and Comerica (CMA) – Get report.
At the end of the week, reports will be issued by UnitedHealth (UNH) – Get report, Procter & Gamble (PG) – Get report, Morgan Stanley (in) – 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 on Tuesday is light. Unemployment insurance applications, housing starts and existing home sales will be launched later in the week.
3. – Lumentum to buy Coherent for $ 5.7 billion
Lumentum Holdings (LIGHT) – Get report agreed to acquire laser maker Coherent (COHR) – Get report for $ 5.7 billion.
The Wall Street Journal said the deal could be announced this week.
Under the terms of the agreement, Coherent shareholders will receive $ 100 per share in cash and 1.1851 common shares of Lumentum for each Coherent share they own, the companies said in a statement.
The transaction represents a 49% premium over Coherent’s closing price on Friday.
Coherent’s shares rose 35.02% to $ 205.17 in the premarket on Tuesday. The shares have fallen about 10% in the last 12 months. Lumentum’s shares, in turn, rose 1.58% to $ 108; its shares rose about 40% 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 subsea communications.
4. – Tesla starts delivering the Y Crossover model made in China
(TSLA) – Get report (TSLA) – Get report started deliveries of its first Model Y crossovers made in Shanghai, China.
The electric vehicle company said via Twitter that “deliveries of the Model Y to China have officially started.”
Tesla opened its factory in Shanghai 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. The Model 3 was the best-selling electric vehicle in China last year, with more than 138,000 units sold, according to the China Passenger Car Association.
The long-range version of the Model Y sold in China starts at 339,900 yuan (about $ 52,400).
Analysts Dan Ives of Wedbush last week raised their target price on Tesla from $ 751 to $ 950, with the action target boosted to $ 1,250, as he said that “the hearts and lungs of Tesla’s thesis are focused on China “.
Tesla was up 1.65% to $ 839.78 in the premarket.
5. – Coronavirus – The most recent
The number of global deaths confirmed by Covid-19, the disease caused by the coronavirus, has increased 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 United States was almost 24.1 million.
According to CNN, while December was the deadliest month for the pandemic in the United States, January was on its way to get worse. More than 46,240 coronavirus deaths in the United States were reported in the first 15 days of January, which was more than half of the nearly 77,500 recorded in the entire month of December.
President-elect Joe Biden’s next administration will reject Donald Trump’s move to relax coronavirus-related travel bans for non-US citizens arriving from the European Union, the UK and Brazil.
Trump decided to terminate the bans from January 26, after the Centers for Disease Control last week issued an order demanding that all airline passengers report negative results for the coronavirus or provide evidence that they have recovered from the disease.
Biden’s press secretary Jen Psaki said that in addition to not putting the brakes on, the new president plans to strengthen public health measures in relation to international travel.