The Dow Jones index ended up 0.4% higher. Nasdaq tech exchange rose 1.5%. The broadly composed S&P 500 climbed 0.8%. The US stock exchanges were closed on Monday because of Martin Luther King Day.
Yellen: time for big steps
Prior to her appearance in the Senate, Yellen said in a statement that now is the time to take major steps to get the US economy through the corona crisis. Last week, it was announced that President Joe Biden, in office on Wednesday, wants to launch a $ 1,900 billion corona support package. At the current low interest rates, it is wise to come up with such a large stimulus package, according to Yellen. “I believe that the benefits far outweigh the disadvantages, especially if we are going to help people who have been struggling for a long time.” According to Yellen, the Biden government wants to create more prosperity for a larger group of Americans.
Yellen also said the US will continue its hardline against China’s economic policy. “We must combat China’s unfair and illegal practices,” said the former central banker. She cited as examples the theft of intellectual property by companies from the Asian superpower, but also the forced transfer of technological knowledge by foreign companies who want to become active in the country. In addition, she denounced the price dumping and market-disrupting subsidies that the country would be guilty of.
It was on Wall Street Goldman Sachs 2.3% lower after an initial plus of 1%. The investment bank did good business in the past quarter, assisting large IPOs and advising on mergers and acquisitions. More money was also made with the trade in shares and bonds. Goldman Sachs net profit was nearly $ 4.4 billion, up 153%.
The profit of Bank of America However, (-0.8%) declined 21% to $ 5.5 billion in the past quarter. The bank announced that it would buy back $ 2.9 billion worth of shares.
Oil service provider Halliburton (-0.9%) suffered a quarterly loss of $ 235 million. But that was better than analysts expected.
The share Office Depot became worth 0.2% more. The office supplies supplier has rejected a takeover bid of more than $ 2 billion from industry peer Staples, business newspaper Wall Street Journal reports.
Software giant Microsoft (+ 1.8%) and car manufacturer General Motors (+ 9.8%) announced a joint investment in autonomous driving cars. Both companies are investing $ 2 billion in newcomer Cruise, which develops self-driving cars and in which Honda also invests. Cruise is more than half owned by General Motors.
FedEx (-1.2%) will cut thousands of jobs in Europe. According to the courier company, 5,500 to 6,300 employees are no longer needed. The CNV trade union assumes that no employees will be left on the street in the Netherlands. FedEx sees the intervention as a final step in the integration of its industry peer TNT, acquired in 2016.
Publishing late tonight Netflix (+ 0.8%) quarterly figures. Investors assume that the streaming service has welcomed approximately six million new subscribers. However, Netflix’s profits are expected to be under pressure.
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