Industry
U.S. stock index futures climbed Tuesday as investors expected U.S. Treasury Secretary Janet Yellen’s nominee to make the case for a major fiscal relief package later in the day, while the next round of U.S. bank earnings was ready to go in and offer some insight into the health of the economy.
PHOTO FILE: Trader Frank Masiello talks on his phone on Wall St. outside the New York Stock Exchange (NYSE) in New York, USA, January 15, 2021. REUTERS / Brendan McDermid
REUTERS: Wall Street was poised for a higher opening Tuesday after attractive earnings from major U.S. banks and Halliburton, while investors awaited a speech from U.S. Treasury Secretary Janet Yellen’s expected nominee to claim major fiscal spending.
Shares of Goldman Sachs Group Inc added 2.5per percent as their fourth-quarter profit more than doubled, dwarfing estimates after performing another blow at its trading and subscription business.
Bank of America also raised profit estimates in the fourth quarter and entered into JPMorgan, Citigroup Inc and Wells Fargo & Co in releasing some cash reserves to cover for loan losses. led by coronavirus, showing its confidence in the economy.
Its shares, however, fell 1.6per percent after a sharp climb over the past two weeks.
“The bank’s earnings are coming in better than expected and we are seeing investors respond favorably to the numbers,” said Sam Stovall, chief investment strategy at CFRA Research.
Wages for S&P 500 companies are likely to decline 7.8 percent in the fourth quarter of 2020 from a year ago, but are expected to recover in 2021, with a gain of 16.7per percent expected for first quarter, according to IBES data from Refinitiv.
Wall Street’s key indices fell on Friday as investors plummeted for profits after a recent rally to record highs on hopes of a quick economic recovery with a strong fiscal stimulus package and vaccine circulation.
Yellen is expected to testify to the Senate Finance Committee, starting at 10 a.m. ET (1500 GMT), that the government needs to “be big” with its next coronavirus relief plan.
President Joe Biden, who will be sworn in on Wednesday, explained the proposal of a $ 1.9 trillion U.S. stimulus package last week to kick-start the economy.
“Yellen was urging the U.S. to work on this coronavirus aid bill. This seems to be the kind of package Wall Street decides is likely to go beyond two house of Congress and so put in to work very quickly. “Stovall added.
At the same time, world stocks picked up earlier in the day with data showing that China ‘s economy was one of the few growing over 2020, picking up pace as the year.
At 08:40 m ET, the Dow E-minis was up 208 points, or 0.68per per cent, the S&P 500 E-minis was up 25.5 points, or 0.68per per cent. Nasdaq 100 E-minis went up 101.5 points, or 0.79per hundred.
Tesla Inc gained 1.6per percent after Jefferies raised its earnings estimates ahead of electric carmakers ’fourth-quarter results next week.
Boeing Co added 1.5per cents as Canada said it would lift a nearly two-year flight ban on its 737 MAX after two fatal crashes involving the model pending final approval from Europe to resume flying next week.
Halliburton Co rose 2.7 percent after posting better – than – expected fourth – quarter profit, reduced by cost cuts and a recovery in demand for oilfield equipment and services following last year’s industry decline.
(Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Bernard Orr and Saumyadeb Chakrabarty)