From Peter Nurse
Investing.com – US stocks open higher Tuesday, recovering from losses from the last week leading up to President-elect Joe Biden’s inauguration and the upcoming earnings season.
The new President Joe Biden is due to be inaugurated under increased security on Wednesday after the Washington uprising in early January. In the lead up, his nominee Treasury Secretary Janet Yellen will appear later on Tuesday as part of her confirmation process before the Senate Finance Committee.
Yellen will be firmly in favor of Biden’s proposed $ 1.9 trillion Covid relief plan. In its prepared remarks, the federal government is urged to “act big”.
The need for additional stimuli has been clear for some time, and the US is close to 400,000 deaths from the Covid-19 virus. Still, there were doubts that the entire package will get through Congress if Republican lawmakers resist.
Goldman Sachs (NYSE: USA) started a busy week of corporate earnings on Tuesday.GS) and Bank of America (NYSE:BAC) because of the report before the opening. This follows from disappointing figures received from JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C.) and Wells Fargo (NYSE:WFC) last week. BofA’s report mirrored the earlier ones, with the release of earlier loan loss provisions supporting the bottom line while the underlying business weakened. Streaming giant Netflix (NASDAQ:NFLX) is also expected to release its fourth quarter results after closing.
Economic data is pretty blank on Tuesday, and the focus will be on the first 2021 PMI data from 2021 US., Eurozone, UNITED KINGDOM. and Japan on Friday, which could be weaker than expected given the new restrictions and rising virus numbers.
Oil prices rose, aided by signs of growth in China, the world’s largest crude oil importer, and optimism about US stimulus measures.
These gains came despite the fact that the International Energy Agency cut its forecasts for global oil demand in 2021 by 300,000 barrels a day due to renewed lockdowns to contain the pandemic.
US crude oil Futures traded 0.3% higher at $ 52.60 a barrel while the international benchmark Brent The contract rose 1.4% to $ 55.51. There was no agreement on the US contract on Monday as American markets were closed for a holiday.