Coronavirus

US stock indices rise ahead of Yellen’s speech

US Close 24 Sep 15: US stocks ease ahead of Yellen speech

Investors are also awaiting a new batch of quarterly earnings reports on January 19

US stock index futures are rallying on Tuesday as investors await Treasury candidate Janet Yellen’s speech and new quarterly earnings reports to provide insight into the US economy.

A new batch of bank earnings reports is expected on Tuesday. Bank of America shares rose 0.5 percent ahead of the opening of trading, although it reported a drop in fourth-quarter earnings. Goldman Sachs added 0.9 percent ahead of its data release. JPMorgan, Citigroup Inc and Wells Fargo & Co posted higher-than-expected earnings on Friday, but stocks tumbled after skyrocketing ahead of the release.

This also caused a decline in S&P 500 and Dow on Friday after hitting all-time highs in hopes of a quick economic recovery thanks to a massive relief package and vaccinations.

It is expected that in the fourth quarter of 2020 the profits of companies S&The P 500 is down 7.8 percent from a year ago, but is expected to recover in 2021 with a projected 16.7 percent growth in the first quarter, according to IBES data from Refinitiv.

Netflix, which is expected to report after the close of trading on Tuesday, rose 1.4 percent. Morgan Stanley, UnitedHealth, IBM Corp, Intel Corp and Schlumberger will report their quarterly results at the end of the week.

Yellen speaks to the Senate Finance Committee on Tuesday.US stock indices rise ahead of Yellen's speech The prepared text of her statement notes the need for “large-scale measures” of economic assistance in connection with the coronavirus.

Meanwhile, world stock indices are showing growth on Tuesday, thanks to data on the Chinese economy. China not only became one of the few countries to record growth in 2020, but also gained momentum by the end of the year.

At 06:29 EST, E-mini Dow futures are up 200 points, or 0.65 percent, S&P 500 – by 29.25 points or 0.78 percent, Nasdaq – by 128.5 points or 1 percent.

Boeing shares jump 2.7 percent after Canada announces lifting ban on 737 MAX aircraft.US stock indices rise ahead of Yellen's speech In Europe, permission to resume flights of this model is expected next week.

Tesla shares up 1.8 percent after Jefferies raised its earnings estimate ahead of earnings release.

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