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Here are five things you need to know for Tuesday, January 19:
1. – Stock futures trading on the rise before Yellen’s testimony
Equity futures were higher on Tuesday as Janet Yellen, President-elect Joe Biden’s candidate for Treasury Secretary, prepared to tell Congress that lawmakers must do more to pull the U.S. economy out of the dark. recession caused by the coronavirus pandemic.
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 big” on the next coronavirus relief plan with borrowing costs so low.
Yellen’s confirmation hearing before the Senate Finance Committee will begin 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, more painful recession now – and long-term scars in the economy later. “, said Yellen on Tuesday, according to her. prepared remarks. “Over the next few months we will need more help to distribute the vaccine; reopen schools; to help states keep firefighters and teachers on the job. “
Biden last week unveiled a $ 1.9 trillion Covid-19 relief package that includes $ 1,400 in direct stimulus payments, extended and improved unemployment benefits, a moratorium on evictions and foreclosures through September and funds for vaccine deployment.
2. – Tuesday’s economic calendar: Goldman Sachs and Netflix earnings
Bank of America (BAC) – Get the report reported earnings of 59 cents per share in the fourth quarter compared to 74 cents per 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 for the fourth quarter, and unveiled a $ 2.9 billion share buyback plan. dollars.
Goldman Sachs (GS) – Get the report gained $ 12.08 per share in the fourth quarter, breaking Wall Street expectations of $ 7.39.
Net income for the period was $ 11.74 billion, up 18% from the previous year.
The earnings will also be released on Netflix on Tuesday. (NFLX) – Get the report, JB Hunt Transportation Services (JBHT) – Get the report, Halliburton (THING) – Get the report, Charles Schwab (SCHW) – Get the report, Interactive brokers (IBKR) – Get the report, State Street (No) – Get the report and Comerica (CMA) – Get the report.
Later this week reports will be released by UnitedHealth (A H) – Get the report, Procter & Gamble (PG) – Get the report, Morgan Stanley (SP) – Get the report, United Airlines (UAL) – Get the report, Intel (INTC) – Get the report and international office machines (IBM) – Get the report.
Goldman Sachs is an interest in Jim Cramer Action Alerts PLUS Members Club. Want to be alerted before Jim Cramer buys or sells the title? Find out more now.
The economic calendar in the United States on Tuesday is light. Jobless claims, housing starts and sales of existing homes will be released later this week.
3. – Lumentum to buy Coherent for 5.7 billion dollars
Lumentum Holdings (LIGHTWEIGHT) – Get the report has agreed to acquire laser manufacturer Coherent (COHR) – Get the report for $ 5.7 billion.
The Wall Street Journal had said the deal could be announced this week.
Under the terms of the deal, 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 trade represents a 49% premium over Coherent’s closing price on Friday.
Coherent shares rose 35.02% to $ 205.17 in pre-market trading on Tuesday. The stock has fallen about 10% over the past 12 months. Lumentum shares, meanwhile, rose 1.58% to $ 108; its stock has gained about 40% over the past year.
Coherent manufactures lasers for use in medical and scientific equipment, industrial applications, and semiconductor manufacturing. Lumentum mainly manufactures optical components used in cloud networks, data transmission and underwater communications.
4. – Tesla starts delivering a Model Y crossover made in China
(TSLA) – Get the report (TSLA) – Get the report has started deliveries of its first Model Y crossovers made in Shanghai, China.
The electric vehicle company said via Twitter that “model Y deliveries to China have officially started.”
Tesla innovated two years ago at its factory in Shanghai. The 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 sold, according to the China Passenger Car Association.
The long-range Model Y version sold in China starts at 339,900 yuan (about $ 52,400).
Analysts Dan Ives of Wedbush last week raised his Tesla price target to $ 950 from $ 751, with a bullish target for the stock raised to $ 1,250, as he put it “the hearts and lungs of the Tesla bull thesis are centered on China “.
Tesla was up 1.65% to $ 839.78 in pre-market trading.
5. – Coronavirus – The last
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, the highest in the world. The number of people infected in the United States was nearly 24.1 million.
According to CNN, while December was the deadliest month in the United States for the pandemic, January was about to be worse. More than 46,240 U.S. coronavirus deaths were reported in the first 15 days of January, which was already more than half of the roughly 77,500 deaths recorded in December.
The incoming administration of President-elect Joe Biden will reject Donald Trump’s decision to relax coronavirus-related travel bans for non-US citizens from the European Union, UK and Brazil.
Trump has decided to revoke the bans from January 26, after the Centers for Disease Control last week issued an order requiring all air travelers to show negative test results for the coronavirus or present evidence that they had recovered from the disease.
Biden’s press secretary Jen Psaki said that in addition to not lifting the brakes, the new president plans to strengthen public health measures around international travel.
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