Investing.com - Investors will continue to follow the progress on additional financial incentives in the United States on the eve of the abbreviated week, and until the season of quarterly reporting begins to approach the end, there are some more high-profile names that will show the results. In the economic calendar, the main events behind which the retail sales indicators in the United States and the protocols of the last meeting of the Federal Reserve System will be. Market participants will also close on Thursday for hearings in the Financial Services Committee of the House of Representatives in connection with the recent shocks at Gamestop Shares (NYSE: GME) and others, and Bitcoin approaches $ 50 thousand. This is what you need to know about events in financial The market at the beginning of the week.
1. Incentives
Granted by the US President Joe Biden's aid to combat COVID-19 $ 1.9 trillion for a week will be transferred to the next stage when the Budget Committee of the House of Representatives will collect all its components into a single legislative act.The proposed package of expenses exceeding $ 4 trillion adopted by its predecessor-Republican Donald Trump will have important consequences for the global economy, which is slowly and unevenly restored after last year - the worst decline since the Great Depression of the 1930s.
On Friday, US Finance Minister Janet Yellen called on the financial leaders of the G7 countries to provide additional financial support for reliable and sustainable economic recovery, stating that "time for big changes has already come."
2. Revenues
S & P 500 and Nasdaq indexes closed last Friday at record maxima, since the expectations of new financial assistance from Washington, which will help the US economy to recover, strengthened the risk appetite. Investors are eagerly awaiting on Thursday report from Walmart (NYSE: NYSE: WMT) to get an idea of the level of consumer spending.
Investors will also study reports on the income and loss of hotels, cruise liners and other enterprises that have greatly suffered from a pandemic, on the subject of who first come to the norm as recession.
Wednesday will be published on Wednesday Hilton Worldwide Holdings Inc (NYSE: HLT) and Hyatt Hotels Corporation (NYSE: H) for them on Thursday follow Marriott International Inc (NASDAQ: MAR), Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) and TripAdvisor Inc (Nasdaq: Trip).
The stock market in the United States will be closed on Monday in connection with the celebration of the President's Day.
3. Economic data
The main events in the economic calendar in the United States will be data on retail sales and industrial production for January, which are expected to show that in 2021 the economy has reached a confident start.Investors will also follow on Thursday for data on the number of primary applications for unemployment benefits, since the restoration of the labor market is still slow. Problems in the labor market strengthen arguments in favor of a $ 1.9 trillion assistance proposed by the President Biden, which is already under consideration in the US Congress.
Meanwhile, the minutes of the January meeting of the US Federal Reserve System should be published on Wednesday.
4. Bitcoin passed for $ 50 thousand.
Bitcoin on Sunday reached a new record, for the first time rising above the level of $ 49 thousand.
However, some market participants still advise caution.
"Investors must remember that Bitcoin is not a simple enrichment scheme. In fact, he was and will be pronounced price fluctuations in the direction of decline, especially when the "winners" in the short term seek to pick up their income, "said Gavin Smith, CHIPTOVOLUT PANXORA GROUP CRYPTOVAMA CEO.
5. Hearings about Stonks
The leaders of Robinhood, Citadel, Melvin Capital and Reddit will perform on Thursday to the US Chamber of Financial Services Committee. The Committee will explore how retail traders brought Gamestop shares and other companies for which the funds had short positions to extremely high levels, which led to huge losses for hedge funds, such as Melvin, which made rates against these shares.
Robinhood has become a popular place to trade with shares, but it was criticized for the temporary restriction of trade in shares.
The trading platform stated that she had to introduce restrictions after the rapid trade in shares caused margin in the amount of $ 3 billion for the clearing chamber, which led to the voltage of the company's balance sheet.
Author Norin Berk
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