Investing.com - Senate will consider the candidacy of Janet Yellen to the post of Minister of Finance of the United States; Goldman Sachs and Netflix will inform about income; The COVID-19 wave seems to achieve his peak in the USA; The International Energy Agency has again reduced oil consumption forecast in 2021. This is what you need to know about the stock market on Tuesday, January 19.
1. Yellen will declare Senate about the need to "act in large"
Janet Yellen, the former head of the US Federal Reserve, which Joe Biden nominated the Minister of Finance, will visit hearings to approve her candidacy in the Senate Finance Committee.
The first task of Yellen will be to convince the Congress to take a $ 1.9 trillion cost package to alleviate the burden of a pandemic for the lack of households and enterprises.
"Neither the elected president, nor I offer this package of assistance without taking into account the debt burden of the country," said Yellen, according to the notes published on Monday. - But now, when interest rates are on a historical minimum, the most reasonable thing we can do is act in a large one. I believe that in the long run, the advantages will be beneficial to the costs, especially if we take care of helping people who fought for a very long time. "
2. Report Goldman and Bank of America
Another series of banking reports will spend more light on the state of the economy at the beginning of the reporting season for the fourth quarter. The first wave received a cool reception on Friday: investors are skeptical to a decrease in lending volumes and JPMorgan, Citigroup and WELLS Fargo margin.
Today's reports will be shipped with Wall Street, and with Main Street, and Goldman Sachs need to justify their recent record highs, and Bank of America, State Street and Zions Bancorporation will be "under a microscope". Charles Schwab data will be given an idea of the state of the brokerage industry trying to struggle to monetize huge turnover due to volatility in the market, under pressure from such platforms as RobinHood.
3. The market will open with growth; All attention - to the speech of Yellen
The stock market in the United States will again open after the celebration of Martin Luther King Day on Monday, and Yellen's comments are a long-awaited impulse reminder, which must give the next measures to stimulate the economy.
By 06:30 in the morning East time (11:30 Greenwich), Dow Jones futures rose 205 points, or 0.7%, while S & P 500 futures rose by 0.8%, and futures on NASDAQ Composite - by 1.0%.
All three index fell last Friday in response to a report of banks on revenues and a weak report on retail sales. Strong indicators of China's exports have since gave some confirmation regarding the growth of household costs in the United States.
Revenue reports should also be received from Carnival Corporation, Halliburton and JB Hunt, and after closing the market - from Netflix.
4. Germany intends to extend quarantine, and crisis because of COVID-19 in the USA weakens
Splash COVID-19, which took place at the end of 2020, seems to be retreating. The number of hospitalizations with the virus fell in the United States sixth day in a row to the lowest level from the beginning of the year, although some distortions are possible due to the reporting in connection with the feast.
The daily average mortality rate in the United States also fell, without reaching a new maximum for the week. But in this case, the average daily number of deaths continues to exceed 3 thousand people.
According to Der Spiegel, in Germany, Europe's largest economy, the federal authorities and the government of land are going to approve the extension of the current quarantine measures until February 15.
5. Maa lowered the forecast for oil demand
The International Energy Agency reduced its forecast of world oil demand this year, which reflects weaker than expected, consumption in early 2021 due to a pandemic.
An analytical center in Paris said that this year, global demand will grow by 5.45 million barrels per day until the average value of 96.64 million barrels per day. This is about 300 thousand barrels per day less than predicted in December, as it is now expected that consumption in the first quarter will be 600 thousand barrels a day below the previous assessment.
By 06:30 in the morning East time (11:30 GRINVICHI) Futures for American crude oil WTI rose by 0.2% to $ 52.50 per barrel, and Brent oil raised in price by 1.4% to $ 55.49 per barrel .
Data on oil reserves in the United States from the American Institute of Oil and Energy Information Management are delayed this week for one day due to the holiday on Monday.
Author Jeffrey Smith
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