Tuesday saw the return of the U.S. session which was closed yesterday in celebration of the Martin Luther King holiday.
Markets rallied as former Fed chair Janet Yellen spoke on the eve of her appointment as U.S. Treasury Secretary, stating they will need to “act big” in any further stimulus packages.
In her speech she stated that, “Neither the president-elect, nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big”.
As of writing the S&P 500 was up 0.81% in afternoon trading as it nears a record high.
Earnings Season: Goldman Sachs outperforms market estimates
After several banking giants kicked off earnings season on Friday, today saw the turn of another “too big to fail” juggernaut to release its earnings.
This was in fact Goldman Sachs which announced that its Q4 financial performance had beat the general market expectations.
The company reported earnings per share of $12.08, vs. the market expectation of $7.47 per share. In addition to this, Revenue came in at $11.74 billion, which was about $1.75 billion more than the $9.9 billion estimate.
Despite this, shares in the firm were down over 1.6%, after previously being up in pre-market trading.
IEA cut 2021 oil demand forecast
The International Energy Administration today reported its updated forecast for oil demand in 2021, trimming last month’s projections.
Figures released by the IEA showed that global demand could rise by 5.45 million barrels a day in 2021 to an average of 96.64 million for the year.
This number is close to 300,000 bpd less than what it predicted in December. The decline comes as it now expects Q1 demand to be 600,000 below its previous estimate.
With many nations now in lockdown till the spring, oil demand is set to take a little longer to recover than initially expected.
Despite this data, WTI Crude rose by over $1, to hit a high of $53.13 on the day.
Quote of the day – “Learn to take losses. The most important thing in making money is not letting your losses get out of hand.”Martin Schwartz
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Senior Market Analyst