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Dow Pumped on Energy, Earnings; Yellen Calls for More Stimulus

Published 01/19/2021, 01:53 PM
Updated 01/19/2021, 03:35 PM
© Reuters.

By Yasin Ebrahim

Investing.com – The Dow rose Tuesday on better-than-expected quarterly results and growing optimism that more stimulus is about to hit bank accounts under President-elect Joe Biden's administration.

The Dow Jones Industrial Average rose 0.43%, or 131 points. The S&P 500 was up 0.86%, and the Nasdaq Composite gained 1.56%.

Goldman Sachs (NYSE:GS) reported fourth-quarter results that topped Wall Street estimates, but it shares slipped more than 1%. While Bank of America (NYSE:BAC) reported mixed results as revenue missed analysts estimates, the bank announced a $2.9 billion stock buyback program.

Elsewhere in financials, American Express (NYSE:AXP) rose 4% after JPMorgan upgraded the stock to overweight from neutral on expectations for a rebound in consumer spending.

In energy, Halliburton (NYSE:HAL) fell less than 1% despite reporting fourth-quarter earnings of $0.18 and revenue of $3.24 billion that topped analysts estimates.

Still, the broader energy sector remained well supported by rising oil prices on optimism further stimulus from the incoming Biden administration will boost demand.

Former Federal Chairwoman Janet Yellen in her confirmation hearing as Treasury Secretary called on lawmakers in Congress to “act big” and support further stimulus to boost the economic recovery.
 
Tech, meanwhile, also played a role in the intraday rally as the Fab 5 racked up gains after JPMorgan (NYSE:JPM) told investors in a note that it was time to return to big tech.   

Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOGL) were higher.

In other news, General Motors (NYSE:GM) said Microsoft was investing in Cruise, its autonomous vehicle project, sending its shares up 9%. Under the deal, Microsoft would be the preferred cloud provider for Cruise and General Motors.

 
On the political front, Senate Majority leader Mitch McConnell said the mob that attacked the U.S. Capitol earlier this month was provoked by President Donald Trump. The comments come ahead of the Senate's Trump impeachment trial.

Latest comments

Most definitely I jus saw you on fox Ellen Republican stimulus's should definitely take care of 50% of the pandemic damage no run around it.
Democrat or Republican, Mnuchin or Yellen...all the same.
Stimulus is now as inevitable as raising the debt ceiling. It has to happen or the whole financial system falls apart. Its sad that these two negative events are now the key driver of stocks
More $ trillions stimulus so Fed doesnt have to pump endless trillions. Either way its an artificial pump because the economy is way way worse than the stock market
While all of this stimulus talk sounds great, it's going to have to be paid for at some point. You can't rely on mainly the wealthy to pay for everything. Sure it sounds nice, but they are also the people who can afford to pack up and move to a more tax-friendly country. So, you can't just text them out of existence.Meanwhile, things like significantly higher minimum wage sound great, those expenses aren't just eaten by the companies, and are instead passed to the consumer, thereby making the cost of living drastically increase at a rate that disproportionately affects the lower income brackets. Things like food, which relies so heavily on lower wage workers, could see as much as a 30 to 50% increase in cost of production to retail. Restaurant and entertainment expenses could go up the same, as their ingredients / materials cost increase along with their employment costs. Additionally, establishment costs increase due to landlords' cost of living increase.
Put America back to work before there is no America left. OH! That's the plan. My bad.
of course yellen yells for more stimulus. Every sane person from Zimbabwe to Venezuella does.
doesn't matter who is in charge, the message is the same, we need to keep the stock market inflated for as long as possible at whatever cost........translation = increase federal balance sheet and claim it'll be reduced or take on more debt that'll never be repaid. lol.
Act big. Payback big. Business tax increases will be passed on to the consumer resulting in a higher cost of living for everyone. Thanks Joe.
perhaps your idea is better - write out checks before any investment is seen and before you have any money in the account.
they trick you with the fancy words and figures. It really is that simple. All gov and fed expenditures are eventually passed on to the tax payer.
Obviously since Donalds big tax breaks the cost of living has gone down?
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