US STOCKS S&P 500, Nasdaq Hits Highs As Netflix Bounces, Biden Inaugurated

A Wall Street sign is pictured outside the New York Stock Exchange in the Manhattan neighborhood of New York, New York, United States, October 2, 2020. REUTERS / Carlo Allegri / File Photo

Jan. 20 (Reuters) – The S&P 500 and Nasdaq hit record highs on Wednesday as Joe Biden was sworn in as the 46th president of the United States, while strong Netflix results sparked a rally in winners’ shares in the foyer.

Shares of the world’s largest streaming service Netflix (NFLX.O) jumped 18.08% and added nearly $ 40 billion to its market cap after saying it would no longer need to borrow billions of dollars to finance its TV shows and movies. Read more

The rest of the FAANG group, which are due to release results in the coming weeks, have jumped along with Google’s parent company Alphabet Inc. (GOOGL.O) up 5.59%. The NYSE FANG + TM Index (.NYFANG) gained 5.06%.

“What’s interesting about Netflix is ​​that they didn’t collapse when the economy collapsed. There was this thought that maybe COVID would actually be bad for them because the people wouldn’t want to spend any money, but it was just the opposite. Everyone signed up for these streaming services, “said Sylvia Jablonski, chief investment officer at Defiance ETFs in New York.

Biden will waste little time turning the page on the Trump era, aides said, signing off in the afternoon a series of 15 executive actions on issues ranging from the COVID-19 pandemic to the economy on the way. by climate change. Read more

“The market reacted to the election some time ago and it did so in a positive way for President Biden’s appointment,” Jablonski said.

“The Americans are ready for the next chapter and are taking some of that preparation and reinvesting in the market.”

The Dow has gained around 57% and the S&P 500 has gained around 68% since Donald Trump took office on January 20, 2017, which compares to a 65% jump in the Dow and 75% in the S&P in the past. during the Obama administration’s first term.

Major Wall Street indexes have hit record highs in recent months, with the Dow blue chip having jumped about 13% since the presidential election in November, as investors bet on a strong economic recovery in 2021 thanks to the rollout. COVID-19 vaccine and a larger pandemic contingency plan.

Almost all of the top 11 S&P sectors advanced in afternoon trading, with communications services (.SPLRCL), immovable (.SPLRCR) and technology (.SPLRCT) among the biggest winners.

Conclusion of the results of the main US lenders, Morgan Stanley (MS.N) slipped 0.61% despite posting quarterly profit that exceeded past estimates on strong trading activity. Read more

The broader index of banks (.SPXBK) paid about 1.60%, down for the third day.

With stock valuations nearing a 20-year high, investors are hoping that company results and earnings outlook will help them determine how justified the valuations are. Read more

At 2:26 p.m. ET (1926 GMT), the Dow Jones Industrial Average (.DJI) rose 211.64 points, or 0.68%, to 31,142.16, the S&P 500 (.SPX) gained 51.63 points, or 1.36%, to 3,850.54 and the Nasdaq Composite (.IXIC) added 259.48 points, or 1.97%, to 13,456.66.

Procter & Gamble Co (PG.N) raised its sales forecast for the full year for the second time as it benefited from sustained demand for cleaning products induced by coronaviruses. Its shares, however, fell 1.31% after warning that the pace of sales could slow as the vaccines roll out. Read more

UnitedHealth Group Inc (UNH.N) fell 0.69% after the health insurer’s quarterly profit fell nearly 38%, weighed down by costs related to its programs to make COVID-19 testing and treatment more accessible for its customers . Read more

The advancing issues outnumbered the declining ones on the NYSE by a ratio of 1.79 to 1; on the Nasdaq, a ratio of 1.10 to 1 favored advances.

The S&P 500 posted 53 new 52-week highs and no new lows; the Nasdaq Composite recorded 321 new highs and four new lows.

Echo Wang report; Additional reports by Devik Jain and Medha Singh in Bangalore; edited by Maju Samuel and Lisa Shumaker

Our standards: Thomson Reuters Trust Principles.

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