Breaking News
0
Ad-Free Version. Subscribe now to follow markets, faster and distraction-free. More details

Yellen's Hearing, Goldman and Netflix Earnings, IEA Report - What's up in Markets

EconomyJan 19, 2021 12:39
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- Janet Yellen, Treasury Secretary designate, has her confirmation hearing in the Senate. Goldman Sachs (NYSE:GS) and Netflix (NASDAQ:NFLX) report earnings, the Covid wave looks like it has peaked in the U.S., but the International Energy Agency cuts its forecast for 2021 oil consumption again. Here’s what you need to know in financial markets on Tuesday, January 19th.

1 Yellen to tell Senate of need to "act big"

Janet Yellen, the former head of the Federal Reserve who is now Joe Biden’s nominee for Treasury Secretary, will have her confirmation hearing before the Senate Finance Committee.

Yellen’s first task will be to persuade Congress to pass Biden’s $1.9 trillion spending package to lighten the burden of the pandemic on cash-strapped households and businesses.

“Neither the president-elect, nor I, propose this relief package without an appreciation for the country’s debt burden,” Yellen said in prepared remarks published on Monday. “But right now, with interest rates at historic lows, the smartest thing we can do is act big. In the long run, I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time.”

2. Goldman, Bank of America (NYSE:BAC) to report 

There’s another salvo of bank reports, which will shed more light on the state of the economy at the start of the fourth-quarter earnings season. The first wave of updates on Friday received a cool reception, with investors taking a dim view of depressed lending volumes and margins at JPMorgan (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC).

Today’s reports come from both Wall Street and Main Street, with Goldman Sachs needing to justify its recent all-time highs and Bank of America, State Street and Zions all under the microscope. Figures from Charles Schwab will meanwhile give a glimpse into the state of a brokerage industry struggling to monetize massive volatility-driven turnover under pressure from disruptors such as Robinhood.

3 Stocks set to open higher;  Yellen hearing eyed 

U.S. stocks are set to reopen higher after the Martin Luther King Day holiday on Monday, with Yellen’s remarks a welcome reminder of the momentum behind economic stimulus measures.

By 6:30 AM ET,  Dow Jones Futures were up 205 points, or 0.7%, while S&P 500 Futures were up 0.8% and NASDAQ Futures were up 1.0%.

All three had fallen on Friday in response to the bank earnings and a weak retail sales report. Strong Chinese export figures since then have given some reassurance as to the strength of U.S. household spending.

Earnings are also due from Carnival, Halliburton and JB Hunt. Topping the bill after the close will be Netflix.

4. Germany set to extend lockdown; U.S. Covid crisis eases

The surge in Covid-19 at the end of 2020 appears to be receding. Hospital admissions tied to the virus fell for the sixth straight day in the U.S. to their lowest since the start of the year, although some distortions due to holiday-induced late reporting are possible.

The seven-day average for daily fatalities in the U.S. has also flattened, failing to post any new high for a week. Even so, the average daily death toll is still over 3,000.

In Europe’s largest economy, Germany, federal and state government officials are set to approve an extension of the current lockdown measures through February 15th, according to Der Spiegel.

 5. IEA trims oil demand forecasts

The International Energy Agency cut its forecast for global oil demand this year, reflecting weaker-than-expected consumption in the early part of 2021 due to the pandemic.

The Paris-based think-tank said global demand will rise by 5.45 million barrels a day this year to an average of 96.64 million b/d. That’s about 300,000 b/d less than it predicted in December. That’s because it now expects Q1 consumption to be 600,000 b/d below its former estimate.

By 6:30 AM ET, U.S. Crude futures were up 0.2% at $52.50 a barrel, while Brent crude was up 1.4% at $55.49 a barrel.

U.S. inventory data from the American Petroleum Institute and Energy Information Administration are each delayed this week due to Monday’s holiday and the inauguration. The API data will be published on Wednesday and the EIA data will be published on Friday at 11:00 AM ET.

Yellen's Hearing, Goldman and Netflix Earnings, IEA Report - What's up in Markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email