U.S. stocks go up following Yellen Speech as financial shares gain

US Stocks

U.S. stocks ended up on Wednesday as Janet Yellen the Federal Reserve chair said that the economy is near the central bank’s goal of full employment and stable prices. Despite the decline of shares in Goldman Sachs Group and Citigroup, financial stocks still advanced.

The S&P 500 Index went up 0.2 percent to 2,2672 in New York as the Dow Jones Industrial Average dipped 22 points to 19,805 due to Goldman Sachs shares going down by 1.5 percent pulling the index down. Both lost 0.3 percent on Tuesday as the S&P 500 Banks Index saw its biggest decline since June 27.

  • Six out of 11 industry groups are higher leaving the market mixed.
  • Financial shares go up 0.8 percent with a gain of 2.6 percent in Bank of America offsetting the losses incurred by Citigroup (1.7 percent) and Goldman Sachs (0.6 percent).
  • Compared with the average 7.3 billion shares so fare in 2017, heavy volume at the open dwindled throughout the day as 6.2 billion shares were traded.
  • VIX went up for the second consecutive day at 5.1 percent.
  • Economic data were largely in alignment with expectations with CPI going up 2.1 percent year over year and hourly earnings going up 0.8 percent.
  • Compared with the 0.5 percent estimate, factory output went up less than the forecast in December climbing at 0.2 percent
  • Analysts estimate profit at S&P 500 companies rose 4.3 percent in the fourth quarter of 2016, and will jump 12 percent this year.

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