© Reuters. FILE PHOTO: A sign is pictured on Wall Street in front of the New York Stock Exchange in New York City
From Echo Wang
(Reuters) – US stocks closed at record highs on Wednesday as Joe Biden was sworn in as the 46th US President, while solid results from Netflix (NASDAQ 🙂 sparked a rally in stocks from "stay-at-home" beneficiaries.
Shares in the world's largest streaming service, Netflix, rose 16.85% after the company announced it would no longer have to borrow billions of dollars to fund its TV shows and movies.
The rest of the FAANG group rose 5.36% over the coming weeks based on the report results, with the Google Parent Alphabet (NASDAQ 🙂 Inc rising. The NYSE FANG + TM index gained 4.77%.
"It's a day of technical outperformance that has been quite rare in the past two or three months as cyclical rotation has begun," said Ross Mayfield, investment strategy analyst at Baird in Milwaukee, Wisconsin. He added that much of the move can be traced back to Netflix.
"(Today was) just a reminder that the tech run was extended … the FAANG names, and some of the other tech names, are still incredible operators and will be producing incredible earnings quarters for the foreseeable future," Mayfield added Referring to Biden's proposed $ 1.9 trillion spending plan.
Biden will waste little time turning the pages of the Trump era, Helpers said, signing 15 executive actions in the afternoon on topics ranging from the COVID-19 pandemic to the economy to climate change.
"I'm not sure the Inauguration Day policy did much, but certainly the expectation of more than a trillion pulses," Mayfield added.
The Dow is up about 57% and the S&P 500 is up about 68% since Donald Trump took office on January 20, 2017. That equates to a 65% increase in the Dow and a 75% increase in the S&P during the first term of the Obama administration.
Wall Street's major indices have hit record highs in recent months. The blue-chip Dow has risen about 13% since the November presidential election as investors looked to a strong economic rebound in 2021 with the introduction of COVID-19 vaccines and a major pandemic relief plan.
Virtually all 11 of the major S&P sectors performed in afternoon trading, with communications services, consumer discretionary and technology being among the biggest winners.
Summary of the results of the major US banks, Morgan Stanley (NYSE 🙂 declined 0.2% despite the release of a quarterly profit beating estimates based on the strength of its trading business.
The broader banking index lost around 1.34% and fell on the third day.
With stock market valuations close to a 20-year high, investors hope that company results and earnings outlook will help them determine how justified the valuations are.
The S&P 500 rose by 257.86 points or 0.83% to 31,188.38, the S&P 500 rose by 52.94 points or 1.39% to 3,851.85 and the additional 260.07 points or 1, 97% to 13,457.25.
Procter & Gamble (NYSE 🙂 Co raised its full-year revenue forecast for the second time as it benefited from continued coronavirus demand for cleaning products. However, stocks fell 1.25% after warning that the pace of selling could slow with the introduction of vaccines.
UnitedHealth Group Inc (NYSE 🙂 was down 0.38% after the health insurer's quarterly earnings slumped nearly 38%, weighed down by costs related to its programs to make COVID-19 tests and treatments more accessible to its customers close.
Progressive issues outperformed declining issues on the NYSE by a ratio of 2.02 to 1; On Nasdaq, a ratio of 1.24 to 1 favored the advanced.
The S&P 500 posted 54 new 52-week highs and no new lows. The Nasdaq Composite made 336 new highs and four new lows.
The volume on the US exchanges was 13.66 billion shares, compared to the average of 12.83 billion for the entire session over the last 20 trading days.