Here are five things you need to know by Tuesday, January 19:
1. – The stock futures trade is surpassed before Yellen’s testimony
Stock futures were higher on Tuesday as Janet Yellen, nominated for President-elect Joe Biden for Treasury Secretary, prepared to tell Congress that lawmakers need to do more to lift the US economy out of the coronavirus pandemic recession .
Dow Jones industrial average contracts rose 189 points, S&P 500 futures rose 26 points, and Nasdaq futures gained 116 points.
Yellen, who served as chairman of the Federal Reserve from 2014 to 2018, will tell the Senate Finance Committee that Congress must “act largely” on the next coronavirus aid package with such low borrowing costs.
Yellen’s confirmation hearing before the Senate Finance Committee will begin at 10 a.m. ET.
“Economists do not 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 of the economy later,” Yellen will say on Tuesday. . “In the next few months, we will need more help to distribute the vaccine; to reopen schools; to help states keep firefighters and teachers in the workplace. ”
Biden unveiled a $ 1.9 trillion Covid-19 aid package last week that includes $ 1,400 in direct stimulus payments, extended and improved unemployment benefits, a moratorium on forced evictions and executions through September, and funding for implementation vaccine.
2. – Tuesday’s economic calendar: Goldman Sachs and Netflix Earnings
Bank of America (ferry) – Get the report reported fourth-quarter earnings of 59 cents a share from 74 cents a share a year earlier.
The bank said it would release about $ 828 million in reserves, allowing it to pay an 18-cent dividend per share for the fourth quarter, and revealed a $ 2.9 billion share repurchase plan.
Goldman Sachs (GS) – Get the report gained $ 12.08 per share in the fourth quarter, breaking Wall Street expectations of $ 7.39.
Net income during this period was $ 11.74 billion, up 18% from the previous year.
Earnings will also be released Tuesday from Netflix (NFLX) – Get the report, JB Hunt Transport Services (JBHT) – Get the report, Halliburton (WORKING) – Get the report, Charles Schwab (SCHW) – Get the report, Interactive Brokers (IBKR) – Get the report, State Street (Not) – Get the report and Comerica (shirt) – Get the report.
Later in the week, the reports will be issued by UnitedHealth (UNH) – Get the report, Procter & Gamble (p) – Get the report, Morgan Stanley (girl) – 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 US economic calendar on Tuesday is easy. Unemployment claims, housing starts and existing home sales will be launched later in the week.
3. – Lumentum will consistently buy for $ 5.7 billion
Lumentum Holdings (LITE) – Get the report agreed to purchase the laser manufacturer Coherent (COHRE) – Get the report for $ 5.7 billion.
The Wall Street Journal reported that the deal could be announced this week.
Under the terms of the agreement, the coherent shareholders will receive $ 100 per share in cash and $ 1,1851 shares of Lumentum common shares for each coherent share they hold, the companies said in a statement.
The transaction represents a premium of 49% compared to the closing price of Coherent on Friday.
Coherent shares rose 35.02% on Tuesday to $ 205.17. The stock has fallen by about 10% in the last 12 months. Meanwhile, Lumentum shares rose 1.58% to $ 108; its stock has gained about 40% in the last year.
Coherently produces lasers used in medical and scientific equipment, industrial applications and semiconductor manufacturing. Lumentum mainly produces optical components used in cloud networks, data transmission and underwater communications.
4. – Tesla begins to deliver the Y Crossover model made in China
(TSLA) – Get the report (TSLA) – Get the report began deliveries of its first Model Y crossovers made in Shanghai, China.
The electric vehicle company said on Twitter that “Model Y deliveries to China have officially begun.”
Tesla started the field at its plant in Shanghai two years ago. Model Y is the second factory-manufactured vehicle.
About a year ago, Tesla began delivering the Model 3 sedan to the Chinese market. Model 3 was China’s best-selling electric vehicle last year, with more than 138,000 sold, according to the China Automobile Association.
The long-range Model Y version sold in China starts at 339,900 yuan (about $ 52,400).
Wedbush analysts Dan Ives last week raised their target price on Tesla to $ 950 from $ 751, and the stock market wave target has risen to $ 1,250, as he said that “the hearts and lungs of Tesla’s bull thesis are centered around China ”.
Tesla rose 1.65% to $ 839.78 in premarket trading.
5. – Coronavirus – The latest
The number of confirmed global deaths from Covid-19, a disease caused by 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, 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 in the US for the pandemic, January was on the verge of getting worse. More than 46,240 coronavirus deaths in the United States have been reported in the first 15 days of January, more than half of the approximately 77,500 recorded in December.
The future administration of President-elect Joe Biden will reject Donald Trump’s move to relax coronavirus travel bans for non-U.S. Citizens arriving from the European Union, Britain and Brazil.
Trump has decided to lift the bans beginning Jan. 26, after last week the Centers for Disease Control issued an order requiring all air passengers to report negative coronavirus test results or evidence they have recovered from the disease. .
Biden’s press secretary, Jen Psaki, said that in addition to not lifting the curbs, the next president intends to strengthen public health measures around international travel.