Tue, July 17, 2012
NEW YORK, July 17 (Xinhua) -- U.S. stocks opened higher Tuesday on positive earning reports, ahead of Federal Reserve Chairman Ben Bernanke's testimony.
Goldman Sachs Group Inc said its second quarter earnings per share declined 4 percent to 1.78 dollars, as its investment division business dropped significantly. But its net income still beat previous expectations.
Bernanke will testify before the Senate Banking Committee and the House Financial Services Committee on Tuesday and Wednesday.
"These testimonies come just twice a year, and given that these are the last ones before the election, they will be in industry wide focus," said Stephen J. Guilfoyle from U.S. Economist Meridian Equity Partners.
He told Xinhua that traders and investors will want to see if the chairman shies away form the Fed's current economic forecasts, or hints on monetary policy.
"We will be interested to see if any of the Senators bring up recession. Pimco's Bill Gross says the economy is approaching a recession. (The Economic Cycle Research Institute's) Lakshman Achuthan says we have already slipped into one," said UBS Managing Director Arthur Cashin. "Hope someone asks."
The Dow Jones industrial average gained 42.04 points, or 0.33 percent, at 12,769.25. The Standard & Poor's 500 was up 5.83 points, or 0.43 percent, to 1,359.57. The Nasdaq Composite Index rose 17.04 points, or 0.59 percent, to 2,914.03.
