Stimulus Detail, CPI, Uber Earnings, Oil Keeps Rising - What's up in Markets

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By Geoffrey Smith 

Investing.com -- House Democrats reaffirm plans to go big on stimulus, the Senate votes to allow the trial of Donald Trump to proceed, inflation data are under the microscope in the U.S. and China, Uber reports earnings as Lyft (NASDAQ:LYFT) promises - well - lift-off, and oil keeps rising as global stockpiles shrink further. Here's what's up in financial markets on Wednesday, February 10th.

1. Dems reveal more stimulus details

Democratic lawmakers released further details of their planned coronavirus relief measures, including provisions that would extend $400-a-week unemployment benefits until the end of August and leave the income threshold for stimulus checks at the previous level.

The plans, if passed, would be a big step toward passing the new administration’s $1.9 trillion relief package undiluted, with all of its attendant effects on domestic demand and U.S. Treasury bond issuance.

The news came as the Senate approved the legality of Donald Trump’s second impeachment trial, with a sixth GOP Senator breaking ranks to vote for the motion. Senate Minority Leader Mitch McConnell said the trial would be a matter of conscience for Senators, a comment that relieves the pressure on GOP Senators to acquit the former president.

2. Powell to speak after CPI data 

U.S. consumer price data for January are due for release at 8:30 AM ET. While they’re not the most important measure of inflation for the Federal Reserve, they will form the backdrop for a speech by Federal Reserve Chairman Jerome Powell later on.

Price data released in China overnight showed consumer inflation weakened in January as various regions were locked down to contain fresh outbreaks of the Covid-19 virus. The inflation rate dipped below zero to -0.3% and would have been lower were it not for relatively strong food prices. Producer price inflation, meanwhile, turned positive in year-on-year terms for the first time since the pandemic erupted.

In addition to Powell’s speech later, Bank of England Governor Andrew Bailey will also hold a keynote speech at London’s Mansion House at 12 PM ET (1700 GMT).

3 Stocks set to open higher after Lyft update

U.S. stock market are set to rebound at the open after modest losses on Tuesday, with the progress of the stimulus package and the prospect of unending easy monetary policy from the Fed still providing a benign environment for risk assets.

By 6:30 AM ET (1130 GMT), Dow Jones Futures were up 108 points, or 0.3%, while S&P 500 futures were up 0.4% and NASDAQ Futures were up 0.4%.

Stocks likely to be in focus later include Lyft and Uber (NYSE:UBER). Lyft stock is up 13% in premarket trading at its highest since the pandemic started, after saying late on Tuesday that it will turn a profit this year.  Lyft’s bullish outlook also helped Uber stock to an all-time high in premarket. Uber reports after the close on Wednesday.

4 Toyota upbeat; GM earnings due

Toyota (NYSE:TM) raised its profit guidance for the year through March, reflecting a faster-than-expected rebound for the world’s most profitable automaker.

The company said Wednesday it now expects revenue of around $253 billion for the fiscal year, a touch higher than previously, but revised up its earnings estimate by over 50% to some $19 billion – despite a global shortage of chips for the auto industry that threatens to push up its input costs.  Both numbers are still down from last year, however.  

The figures set a high bar for General Motors (NYSE:GM), which is due to report before the opening. Other earnings releases of note Wednesday include Coca Cola, CME Group (NASDAQ:CME) and Under Armour (NYSE:UA). In Europe, the world’s largest shipping company AP Moeller-Maersk (OTC:AMKBY) said it expected profits to peak in the first quarter, as the global trend to post-pandemic restocking runs it course.

5. Oil hits new 13-month high as inventories shrink 

Crude oil prices surged to new 13-month highs after the American Petroleum Institute reported a surprising and large drop in U.S. crude inventories last week. The figures may be corroborated at 10:30 AM ET, when the U.S. Energy Information Administration releases its own data.

Stocks at the important Fujairah facility in Saudi Arabia also fell to a two-month low last week, newswires reported. Meanwhile, Royal Dutch Shell (LON:RDSa) updated its forecasts for global oil demand, noting that it may not peak until 2037.

By 6:40 AM ET, U.S. crude futures were up 0.6% at $58.67 a barrel, while Brent futures were up 0.5% at $61.51 a barrel.