Yazar: Geoffrey Smith
Investing.com – House Democrats endorse major stimulus plans, Senate votes in favor of continuation of Donald Trump’s trial, inflation data under the microscope in the US and China, Uber will report on the promising gains of Lyft (NASDAQ 🙂 and global stocks With a new decline, oil continues to rise.
Here’s what you need to know in financial markets on Wednesday, February 10th.
1. Democrats provide new details on incentives
Democratic lawmakers introduced new details of their planned stimulus package, including provisions that would extend unemployment benefits from $ 400 per week by the end of August and leave the income threshold for incentive checks at the previous level.
If passed, these plans will be a major step towards unabating the new administration’s $ 1.9 trillion stimulus package, with all its effects on domestic demand and US Treasury bill issuance.
On the one hand, the Senate confirmed the legitimacy of Donald Trump’s second impeachment case. Senate Minority Leader Mitch McConnell said the case would be a matter of conscience for Senators, and this comment eased pressure on the GOP Senators to acquit the former president.
2. Powell will speak after CPI data
US CPI data for January will be released. Although it is not the most important inflation measure for the Fed, it will shape the speech of Fed Chairman Jerome Powell.
Data released by China showed that consumer inflation weakened in January while various regions were under quarantine. The inflation rate dropped to -0.3% below zero and would have fallen further had it not been for the relatively strong food prices. On the other hand, PPI has turned positive on an annual basis for the first time since the epidemic broke out.
In addition to Powell’s speech, Bank of England (BoE) Administrator Andrew Bailey will also give an opening speech at the Mansion House in London.
3.The stock markets will open higher after Lyft’s update
The US stock market will rise at the opening after the small losses on Tuesday. The steps taken regarding the stimulus package and the expectation that the Fed’s expansionary monetary policy will not end still provide a good environment for risk assets.
Up 108 points and the Nasdaq up 0.4%.
Among the stocks that may attract attention Lift and Uber (NYSE :). After Lyft said that it will make a profit this year, its shares rose 13% before the market, the highest level it had seen since the beginning of the epidemic. Lyft’s bullish look has also helped Uber stocks rise to all-time highs. Uber will report on Wednesday.
4 Toyota is upbeat; GM earnings will be announced
Toyota raised its profit guidance for the year through March, reflecting a faster-than-expected recovery.
On Wednesday, the company said it now expects a slightly higher revenue for the fiscal year, with $ 253 billion, but revised its earnings forecast to $ 19 billion, up 50% despite the global chip scarcity threatening to increase input costs for the auto industry. Still, both figures are lower than last year.
These numbers set a high threshold for General Motors (NYSE :), which will report ahead of the opening. Other earnings reports to be released on Wednesday include Coca Cola, CME Group (NASDAQ 🙂 and Under Armor (NYSE :). Maersk, the world’s largest shipping company in Europe, said it expects its profits to peak in the first quarter as the global trend towards replenishment after the pandemic continues.
5.Oil hits new 13-month high as stocks shrank
Crude oil prices saw a new high for 13 months after the American Petroleum Institute (API) showed a surprising and massive drop in stocks last week. Figures may be verified with the US Energy Information Agency (EIA) own data.
According to reports, stocks at Saudi Arabia’s key Fujairah facility also fell to a two-month low last week. On the other hand, Royal Dutch Shell (LON 🙂 updated its global oil demand forecasts, stating that it may not peak until 2037.
WTI was up 0.6% to $ 58.67 and up 0.5% to $ 61.51.