Wall Street started on Tuesday with a big profit. Investors are under the spell of a speech by the new US Minister Janet Yellen (Finance) to the Senate in Washington. Last week, it was announced that Wednesday‘s incoming President Joe Biden intends to launch a corona aid package of $1900 billion.
Shortly after opening, the Dow Jones index is 0.7% higher. Techbeurs Nasdaq rises 1.1%. The broadly composed S&P 500 climbs 0.8%. The American stock exchanges were closed on Monday because of Martin Luther King Day.
Prior to her appearance in the Senate, Yellen stated in a statement that it is now time to take major steps to guide the US economy through the coronacrisis. At the current low interest rates it is sensible to come up with a large incentive package. “I believe that the benefits outweigh the disadvantages, especially when we are going to help people who have been struggling for a long time.” According to Yellen, the Bids government wants to create more prosperity for a larger group of Americans.
On Wall Street, Goldman Sachs is 1.1% higher. In the past quarter, the business bank did good business with supervising major exchanges on Wall Street and advising on mergers and acquisitions. More money was also earned with the trading of shares and bonds. Goldman Sachs’s net profit amounted to nearly $4.4 billion, an increase of 153%.
However, Bank of America‘s profits (-2,1%) fell by 21% to $5.5 billion in the last quarter. The bank announced to buy shares for $2.9 billion.
Oil service provider Halliburton (-0.8%) suffered a quarterly loss of $235 million. But that was better than analysts expected.
Late tonight Netflix publishes quarterly figures (+1%). Investors assume that the streaming service has welcomed around six million new subscribers. However, Netflix’s profits are expected to be under pressure.