By Devik Jain and Medha Singh
(Reuters) – U.S. stock index futures rose Tuesday as investors expected U.S. Treasury Secretary Janet Yellen to advocate a large fiscal relief package later in the day while the next round of U.S. bank profits pour in and offer some Insights into the health of the economy.
Bank of America (NYSE 🙂 gained 0.5% in pre-market trading, despite posting a profit decline in the fourth quarter. Goldman Sachs (NYSE 🙂 was up 0.9% ahead of its results.
JPMorgan (NYSE :), Citigroup Inc (NYSE 🙂 and Wells Fargo (NYSE 🙂 & Co performed better than expected on Friday, but their stocks fell after rising ahead of their profit.
Those bank stocks also weighed on the Dow and the Dow on Friday as investors posted gains after a rally that hit record highs last week in hopes of a swift economic recovery fueled by a hefty stimulus package and vaccine distribution.
Earnings for S&P 500 companies are projected to decline 7.8% year over year in the fourth quarter of 2020, but are expected to recover in 2021. According to IBES data from Refinitiv, a profit of 16.7% is forecast for the first quarter.
Netflix Inc (NASDAQ 🙂 rose 1.4% above results expected after Tuesday's closing bell Morgan Stanley (NYSE :), UnitedHealth (NYSE :), IBM (NYSE 🙂 Corp, Intel Corp. (NASDAQ 🙂 and Schlumberger (NYSE 🙂 are scheduled for later this week.
Yellen will tell the Senate Finance Committee that the government must "act big" with its next coronavirus bailout package, according to its prepared statement from Reuters.
Meanwhile, world stocks have spiked earlier in the day as data showed that China's economy was one of the few to grow in 2020 and actually gained momentum towards the end of the year. (MKTS / GLOB)
At 6:29 a.m.CET, the Dow E-Minis rose 200 points, or 0.65%, and the S&P 500 E-Minis rose 29.25 points, or 0.78%. E-minis rose 128.5 points, or 1%.
Boeing (NYSE 🙂 Co gained 2.7% as Canada lifted a nearly two-year flight ban on its 737 MAX after two fatal crashes with the model, while awaiting final approval from Europe to resume flight next week becomes.
Tesla (NASDAQ 🙂 Inc was up 1.8% after Jefferies (NYSE 🙂 raised earnings estimates ahead of electric car makers' fourth quarter results next week.
Disclaimer: Fusion Media would like to remind you that the information contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price. This means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may suffer from using this data.
Fusion Media or anyone involved with Fusion Media assumes no liability for any loss or damage caused by reliance on the information contained on this website, such as data, offers, charts and buy / sell signals. Please be fully informed about the risks and costs associated with trading in the financial markets. This is one of the riskiest forms of investment possible.