Stocks edged higher yesterday, rebounding from a rough week last week, as investors digested results from the new earnings season as well as signals for another big stimulus and faster pace of vaccine distribution ahead.

Shares of Goldman Sachs traded 1.5% lower as traders took profits after the bank topped expectations for fourth-quarter profit and revenue. The blowout results came on the back of strong performance from its equities traders and investment bankers.  Shares of Bank of America dipped after the bank posted quarterly earnings that exceeded expectations. Revenue came in slightly below estimates.  The first week of earnings season saw a historically high proportion of beats with 88% of the S&P 500 companies that reported exceeding EPS estimates.

Janet Yellen, President-elect Joe Biden’s designated nominee for Treasury Secretary and a former chair of the Federal Reserve, appeared before the Senate Finance Committee yesterday. Yellen’s prepared remarks call for the federal government to enact a large stimulus to help the economy.  The Senate could confirm her as early as Thursday.
 
Tyler Simones, Partner
Northwest Quadrant Wealth Management