Stocks rise as profit hopes outweigh banking jitters
US STOCKS rose yesterday as investors reassessed the potential damage of the fraud case against Goldman Sachs and earnings optimism grew.
Shares of Goldman Sachs, which is expected to report substantial earnings today, reversed course to rise 1.6 per cent to $163.32.
Investors said the furore over Goldman started to die down during trading, allowing people to refocus on coming earnings.
Citigroup jumped seven per cent to $4.88 after the bank turned in its best result since 2007, and the Dow was led by a handful of companies that will report results later this week.
Market watchers attributed some of the strength in the market to a Bloomberg report that the US Securities and Exchange Commission had split 3-2 along party lines to approve an enforcement case against Goldman Sachs, citing two people with knowledge of the vote.
The Dow Jones industrial average rose 73.39 points, or 0.67 per cent, to 11,092.05.
The Standard & Poor’s 500 Index added 5.39 points, or 0.45 per cent, to 1,197.52.
The Nasdaq Composite Index edged down 1.15 points, or 0.05 per cent, at 2,480.11.
International Business Machines gained 1.2 per cent to $132.23 ahead of its results, which came after the closing bell.