Stocks surge as Yellen set to tell Congress to ‘act big’ on coronavirus stimulus

FAN Editor

U.S. stock futures were pointing to a higher open in President Trump’s final full day in office as traders awaited Treasury Secretary nominee Janet Yellen’s Senate testimony on Capitol Hill.

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Dow Jones Industrial Average futures were higher by 183 points, or 0.6%, while S&P 500 futures and Nasdaq Composite futures were up 0.78% and 0.91%, respectively. The major averages were closed Monday in observance of Martin Luther King Jr. Day.

Yellen, the former Federal Reserve chair, will appear before the Senate Finance Committee Tuesday for her confirmation hearing. Yellen will say Congress needs to “act big” to combat the economic slowdown caused by the COVID-19 pandemic, including extending more aid to families and providing additional money to expedite the distribution of vaccines.

In stocks, Goldman Sachs Group reported strong quarterly results that were bolstered by continued strength in dealmaking and trading. Annual investment banking revenue hit a record while trading revenue was the strongest in a decade.

Bank of America reported a quarterly profit that exceeded estimates but revenue fell short. The firm’s board of directors announced a $3.2 billion share buyback plan.

BIDEN’S TRILLION-DOLLAR SPENDING MAY RESTORE INFLATION MISSING SINCE ’08 CRISIS

In deals, Lumentum Holdings agreed to buy laser manufacturer Coherent Inc. for $5.7 billion in cash and stock. Coherent shareholders will receive $100 cash and 1.1851 shares Lumentum shares for each Coherent share they own.

Elsewhere, Tesla Inc. delivered its first made-in-China Model Y crossover vehicle.

GameStop Corp. shares squeezed higher for the third time in four sessions as short-sellers continued to head for the exit. Shares had gained 78% over the three trading sessions through Friday.

In commodities, West Texas Intermediate crude oil ticked up 18 cents to $52.54 per barrel and gold climbed $5.10 to $1,835 an ounce.

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Germany’s DAX 30 paced the advance in Europe, up 0.3%, while Britain’s FTSE 100 was higher by 0.12% and France’s CAC 40 edged up 0.08.

Asian markets ended mixed with China’s Shanghai Composite sliding 0.83% while Japan’s Nikkei 225 rallied 1.39% and Hong Kong’s Hang Seng added 2.7%.

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