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The market is paying attention to Janet Yellen’s speech at the Senate hearing, and she is expected to call on the government to increase fiscal stimulus to boost the US economy. US stocks opened higher on Tuesday 19. The Dow Jones Industrial Average rose more than 200 points or 0.8%, the Nasdaq Index rose more than 1%, the S&P 500 Index rose 0.8% and rates rose 1.5%. TSMC ADR (TSM-US) opened more than 3%.
Treasury Secretary candidate Yellen attended the Senate hearing on Tuesday. The Finance Committee will vote on the nomination of the Secretary of the Treasury. Yellen is expected to ask the government to take large-scale action in the next round of the epidemic assistance program, and the hearing may be published. Give some signs on whether Biden’s $ 1.9 trillion stimulus package can succeed in the Senate as expected.
Spurred by earlier expectations, cyclical stocks such as cruise ships and airlines generally rose in early trading.
As for Yellen’s cautious attitude before attending Congress, the US dollar fell from its peak last month. Media reports expect her to reiterate that the United States will not seek a weak dollar to gain a competitive advantage.
On financial reporting news, Bank of America and Goldman Sachs announced fourth quarter 2020 and full year financial reports ahead of the market on Tuesday. Bank of America’s revenue fell 10% annually, which was not as good as market expectations. It fell 2% at Tuesday’s open. On the other hand, due to strong commercial and investment banking business, Goldman Sachs’ fourth-quarter earnings and earnings were much better than expected, with openings up 1%. .
Starting at 10:00 p.m. on Tuesday (19) Taipei time:
- The Dow Jones Index rose 248.96 points, or 0.81%, to 31063.22 points temporarily.
- Nasdaq rose 132.30 points, or 1.02%, to 13,130.80 points temporarily.
- The S&P 500 Index rose 30.02 points, or 0.80%, to 3,798.27 points temporarily
- Commissions and a half rose 45.85 points or 1.53%, temporarily to 3,038.61 points
- TSMC ADR rises 3.41% to US $ 129.50 per share
- Yield on 10-year US Treasuries increased to 1,114%
- New York light crude rose 0.94% to $ 52.85 a barrel
- Brent crude rose 1.20% to $ 55.76 a barrel
- Gold rose 0.49% to $ 1,838.80 an ounce
- The US dollar index fell 0.36% to 90.43 points
Focus actions:
Goldman Sachs (GS-US) rose 1.03% in early trading to $ 304.11.
Key figures for the results report for the fourth quarter of 2020:
- Revenue: US $ 11.74 billion, an 18% annual increase, better than the US $ 9.9 billion expected by Refinitiv.
- Net profit: $ 4.51 billion, an annual increase of 162%
- Diluted earnings per share (EPS): US $ 12.08, an annual increase of 158%, better than the US $ 7.47 expected by Refinitiv
Annual financial report 2020:
- Revenue: $ 44.56 billion, an annual increase of 22%
- Net profit: US $ 9.46 billion
- EPS after dilution: $ 24.74, an annual increase of 17.6%
Bank of America (BAC-US) fell 2.09% in early trading to $ 32.32.
Key figures for the results report for the fourth quarter of 2020:
- Revenue: US $ 20.1 billion, a 10% annual decrease, less than the US $ 20.7 billion expected by Refinitiv
- Net profit: $ 5.5 billion, a 28% annual decrease
- EPS after dilution: 59 cents, more than the 55 cents expected by Refinitiv
Data from the 2020 annual financial report:
- Revenue: US $ 85.5 billion, a 6% annual decrease
- Net profit: $ 17.9 billion, a 35% year-on-year decrease
- EPS after dilution: $ 1.87, a 32% annual reduction
General Electric (GE-US) rose 1.85% in early trading to $ 11.54.
General Electric said on Monday it would freeze the pension benefits of its roughly 2,800 UK employees to cut costs. The plan can be effective as of January 1, 2022. Pensions for retired employees will not be affected.
Daily key economic data:
No
Wall Street Analysis:
CMC Markets market analyst Michael Hewson said Yellen may face doubts about the strength of the US dollar and concerns about the debt burden caused by the stimulus bill.
Hewson said this is the main concern of legislators who are more conservative in terms of fiscal stance. At least in the short term, Yellen must use all her political skills to convince people that this is necessary.
CMC Markets analyst Michael McCarthy said: “We expect Yellen to say that he will not chase a weak dollar, but that does not mean that Fed policy will not keep the dollar weak. I think the current dollar trend is on trend general bassist. ” A small correction “.
Ludovic Subran, chief economist at Allianz Group, said Yellen will be an important key to implementing large-scale spending policies. What is reassuring is that he has shown a very pragmatic attitude in response to the crisis, as he did at the Fed. The role played is the same.
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