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Positive Reaction To Earnings News May Lead To Strength On Wall Street

wallstreet july19 19jan21 lt

Following the long holiday weekend, stocks are likely to move to the upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 210 points.

The markets may benefit from a positive reaction to the latest earnings news from companies like Goldman Sachs (GS) and Halliburton (HAL).

Shares of Goldman Sachs are moving notably higher in pre-market trading after the financial services giant reported much better than expected fourth quarter earnings.

Oil services giant Halliburton is also likely to see initial strength after reporting fourth quarter results that beat analyst estimates on both the top and bottom lines.

On the other hand, shares of Bank of America (BAC) may move to the downside after the financial giant reported better than expected fourth quarter earnings but on revenues that missed estimates.

Netflix (NFLX), Procter & Gamble (PG), IBM (IBM), and Intel (INTC) are among some of the other big-name companies scheduled to release their quarterly results this week.

Traders are also likely to keep an eye on testimony from Treasury Secretary nominee Janet Yellen, who is due to appear before the Senate Finance Committee.

In prepared remarks seen by numerous media outlets, Yellen calls for additional stimulus to address the impact of the ongoing coronavirus pandemic, arguing the government needs to "act big."

Yellen acknowledges the mounting national debt facing the incoming administration but claimed the benefits of another relief package will far outweigh the costs.

After moving sharply lower early in the session, stocks regained some ground over the course of the trading day on Friday but remained firmly in negative territory. With the drop, the Dow and the Nasdaq pulled back further off the record intraday highs set in early trading on Thursday.

The Dow ended the day down 117.26 points or 0.6 percent at 30,814.26 after tumbling by nearly 380 points in early trading. The Nasdaq slumped 114.14 points or 0.9 percent to 12,998.50 and the S&P 500 slid 27.29 points or 0.7 percent to 3,768.25.

The major averages also moved to the downside for the week, with the Dow falling by 0.9 percent, while the Nasdaq and the S&P 500 both dropped by 1.5 percent.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index jumped by 1.4 percent, while Hong Kong's Hang Seng Index soared by 2.7 percent.

Meanwhile, the major European markets have shown more modest moves to the upside on the day. While the U.K.'s FTSE 100 Index is just above the unchanged line, the French CAC 40 Index is up by 0.1 percent and the German DAX Index is up by 0.2 percent.

In commodities trading, crude oil futures are rising $0.18 to $52.54 a barrel after tumbling $1.21 to $52.36 a barrel last Friday. Meanwhile, after plunging $21.50 to $1,829.90 an ounce in the previous session, gold futures are climbing $5.70 to $1,835.60 an ounce.

On the currency front, the U.S. dollar is trading at 103.89 yen compared to the 103.69 yen it fetched on Monday. Against the euro, the dollar is valued at $1.2138 compared to yesterday's $1.2077.

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