US stocks climb amid stimulus optimism ahead of Yellen hearing
- US stocks rose on Tuesday as investors awaited Janet Yellen's confirmation hearing.
- Yellen, President-elect Joe Biden's nominee for treasury secretary, is expected to urge Congress to "act big" on a stimulus bill.
- Goldman Sachs reported earnings on Tuesday that surpassed analysts' estimates and sent the stock up as much as 2.3% in early trading.
- Watch major indexes update live here.
US stocks rose on Tuesday as investors awaited the confirmation hearing for Janet Yellen, President-elect Joe Biden's nominee for treasury secretary, in which she's expected to urge Congress to "act big" on a stimulus bill.
Biden last week proposed a $1.9 trillion bill; Yellen, the former chair of the Federal Reserve, is likely to drive home that message in her hearing before the Senate finance committee at 10 a.m.
"Right now, with interest rates at historic lows, the smartest thing we can do is act big," Yellen said in prepared testimony.
The fourth-quarter earnings season is underway, with bank earnings in focus this week. Goldman Sachs reported earnings on Tuesday that surpassed analysts' estimates and sent the stock up as much as 2.3% in early trading. The firm posted fourth-quarter revenue of $11.7 billion versus the $9.94 billion estimate from analysts surveyed by Bloomberg. Goldman also reported earnings per share of $12.08 versus the $7.31 estimate.
Tuesday is President Donald Trump's last full day in office. According to CFRA's Sam Stovall, the S&P 500 gained 11.8% in price from Election Day on November 3 through January 15, in what's on track to become the best election-to-Inauguration Day return for a first-term president since World War II.
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:
- S&P 500: 3,796.27, up 0.74%
- Dow Jones industrial average: 31,033.27, up 0.71% (219.01 points)
- Nasdaq composite: 13,137.49, up 1.08%
Bank of America posted a 28% drop in net income in the fourth quarter, to $5.5 billion, or $0.59 per share - but it still beat the $0.55 consensus estimate of analysts polled by Refinitiv. Revenue dropped by 10%, to $20.1 billion, against a backdrop of low interest rates, higher brokerage-service fees, and a fall in credit-card activity.
Krafton, the South Korean video-game studio that created the hit "PlayerUnknown's Battlegrounds," is planning an initial public offering in the second half of 2021, Bloomberg reported, outlining a recent estimate that an IPO could value Krafton at as much as $27 billion.
A resurgence in coronavirus cases is slowing a rebound in global oil demand, according to the International Energy Agency. Global consumption is now expected to recover by 5.5 million barrels per day, to 96.6 million barrels per day, in 2021, the IEA said in its monthly market report on Tuesday.
Bitcoin hovered at about $37,000, climbing from its drop to $35,000 last week.
Spot gold was up 0.51%, to $1,839.30 per ounce. The US dollar declined against most Group-of-10 currency peers, and Treasury yields were up.
Oil prices increased. West Texas Intermediate crude rose as much as 1.13%, to $52.95 per barrel. Brent crude, oil's international benchmark, was up 1.84%, to $55.76 per barrel.
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