US STOCKS-Futures rise ahead of Yellen speech; spotlight on earnings

Reuters

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    * Futures up: Dow 0.65%, S&P 0.78%, Nasdaq 1% 

    By Devik Jain and Medha Singh
    Jan 19 (Reuters) - U.S. stock index futures climbed on
Tuesday as investors anticipated U.S. Treasury Secretary nominee
Janet Yellen to make the case for a big fiscal relief package
later in the day, while the next round of U.S. bank earnings
were set to trickle in and offer some insight on the health of
the economy.
   Bank of America  BAC.N  gained 0.5% in pre-market trading
even after it reported a drop in fourth-quarter profit. Goldman
Sachs  GS.N  added 0.9% ahead of its results.  urn:newsml:reuters.com:*:nL4N2JU2HQ
    JPMorgan  JPM.N , Citigroup Inc  C.N  and Wells Fargo & Co
 WFC.N  posted better-than-expected earnings on Friday, but
their shares dropped following a surge in the run-up to their
earnings.
    Those bank shares also weighed on the S&P 500 and the Dow on
Friday as investors booked profits after a rally to record highs
last week on hopes of speedy economic recovery fueled by a hefty
fiscal stimulus package and vaccine distribution.
    Earnings for S&P 500 companies are expected to decline 7.8%
in the fourth quarter of 2020 from a year ago, but are expected
to rebound in 2021, with a gain of 16.7% forecast for the first
quarter, according to IBES data from Refinitiv.
    Netflix Inc  NFLX.O  climbed 1.4% ahead of its results
expected after the closing bell Tuesday, while Morgan Stanley
 MS.N , UnitedHealth  UNH.N , IBM Corp  IBM.N , Intel Corp
 INTC.O  and Schlumberger  SLB.N  are slated later this week.
    Yellen will tell the Senate Finance Committee that the
government must "act big" with its next coronavirus relief
package, according to her prepared statement seen by Reuters.
 urn:newsml:reuters.com:*:nL1N2JT1NC
    Meanwhile, world stocks got a lift earlier in the day by
data showing China's economy was one of the few to grow over
2020, and actually picked up speed as the year closed.
 MKTS/GLOB 
    At 06:29 a.m. ET, Dow E-minis  1YMcv1  were up 200 points,
or 0.65%, S&P 500 E-minis  EScv1  were up 29.25 points, or
0.78%. Nasdaq 100 E-minis  NQcv1  were up 128.5 points, or 1%.
    Boeing Co  BA.N  added 2.7% as Canada said it would lift a
near two-year flight ban on its 737 MAX following two fatal
crashes involving the model while a final clearance from Europe
to resume flying the jet is expected next week.
 urn:newsml:reuters.com:*:nL1N2JT1HV urn:newsml:reuters.com:*:nL8N2JU24J
    Tesla Inc  TSLA.O  gained 1.8% after Jefferies raised its
earnings estimates ahead of the electric-car makers'
fourth-quarter results next week.  urn:newsml:reuters.com:*:nL4N2JU1SJ

 (Reporting by Devik Jain and Medha Singh in Bengaluru; Editing
by Bernard Orr)
 ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6182 2062; ;))

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