Markets poised for a positive start
U.S. stocks are expected to open in the green on Tuesday, ahead of earnings from Bank of America (NYSE: BAC), Goldman Sachs (NYSE: GS), and Netflix (NASDAQ: NFLX).
Bank of America is projected to report earnings of 55 cents per share on revenue of $20.68 billion ahead of the opening bell.
Analysts expect Goldman Sachs to announce earnings of $7.47 per share on revenue of $9.99 billion before the market open.
Streaming giant Netflix is seen reporting earning of $1.39 per share on revenue of $6.63 billion after the close.
By 5:30 a.m. ET, the blue-chip Dow futures were indicated 154.5 points, or 0.54% to 30,874.5. The S&P 500 futures jumped 24.63 points, or 0.65% to 3,786.88 while the tech-heavy Nasdaq 100 futures gained 121.87 points, or 0.95% to 12,924.12.
Markets were closed on Monday in observance of Martin Luther King Jr. Day.
Yellen speech eyed
Traders are also patiently awaiting a key speech by Janet Yellen, President-elect Joseph Biden’s pick for Treasury Secretary at her confirmation hearing in Washington later in the day.
According to prepared remarks seen by multiple news outlets, Yellen will tell the Senate Finance Committee that she strongly supports the $1.9 trillion relief package that Biden unveiled last week, saying that “the smartest thing we can do is act big” now that interest rates are at historic lows.
Yellen served as Federal Reserve chairwoman in the 2010s and top White House economist in the 1990s.
Coherent stock surges 35% after agreeing to be acquired by Lumentum
Shares in Coherent (NASDAQ: COHR) rocketed $53.55, or 35.24% in pre-market trading Tuesday after Lumentum (NASDAQ: LITE) said it would buy the laser manufacturer in a cash-and-stock transaction worth $5.7 billion.
Coherent shareholders will receive $100 and 1.1851 shares of Lumentum stock for each Coherent share they own, according to a press release published by the companies.
The deal represents a premium of 49% to the closing price of Coherent on Friday.
