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Wall Street Posts Record Highs On Biden’s First Day
Wall Street posts record highs on President Joe Biden’s first day in office, with all major indices closing higher than ever. The Dow Jones Industrial Average gained 257.86 points or 0.8%, then closed at a record 31,188.38. Meanwhile, the S&P 500 closed 52.94 points, or 1.4% higher, and set a new closing high of 3,851.85. The S&P also set an intraday record of 3,859 points. Then, Nasdaq closed 2% percent higher and set a record of 13,457.25.
RELATED: 2020 Ends With Wall Street Record Highs
Renewed Optimism
The January 20 rally reflected Wall Street’s continued optimism in continued economic recovery efforts. The markets look forward to Increased stimulus programs and a ramped vaccine distribution program. These two are part of earlier promises by the Biden administration. Yesterday’s performance continued this optimistic behavior, with investors expecting Democrats to follow through with their demands for increased stimulus programs.
According to Brian O-Reilly, Mediolanum Investment Funds market strategy head, investors still avoid companies that fail to meet expectations, which shows their selectiveness. “Any company that is likely to miss or modestly disappoint on earnings will be punished quite heavily. A lot of optimism has already been priced in and typically you don’t get too much room for maneuver when a stock is at a historic high,” he said. For example, shares of UnitedHealth fell by $1.35 as the company reported reduced profits for the previous quarter.
Netflix Lifts Tech Stocks
Netflix offset the losses from the other sectors and led tech stocks back into the black. The streaming company’s shares zoomed 17%, a new record for single-day gains in the last four years. It reported better than expected results for the last quarter and said they managed to sign 200 million subscribers by the end of 2020. More importantly, Netflix disclosed it has enough money in the bank to fund its operations and wouldn’t need loans anymore. In fact, the company is considering buybacks for some of the stock.
Netflix’s rise led investors to seek similar streaming companies and other tech stocks that got buoyed by the pandemic. This kicked off a broader stock market rally that lifted shares for streaming and tech stocks such as Disney, Apple, Alphabet, Facebook, and others.
More Stimulus
Days before his inauguration, Biden unveiled a $1.9 trillion bill aimed at providing stimulus relief and help with vaccine distribution. The alarming rise in unemployment numbers in December cast a long shadow on the country’s economic recovery efforts. Treasury secretary nominee Janet Yellen told senators they should act “act big” on economic relief during her confirmation hearing Tuesday.
The incoming Treasury secretary said “Neither the president-elect, nor I, propose this relief package without an appreciation for the country’s debt burden, But right now, with interest rates at historic lows, the smartest thing we can do is act big. She emphasized that inaction is more expensive than doing something about the U.S. economy. “In the long run, I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time,” Yellen noted.
88% of Companies Beat Estimates
Earnings results in the markets showed better than expected results by Wednesday. FactSet reported that 88% of companies beat estimates while the inauguration celebrations went on. Analysts believe that this performance, along with anticipated profit growth this year and an economic rebound, should propel the stock market even higher this year.
Terry Sandven, Chief Equity Strategist at US Bank Wealth Management, said that stocks should trend higher this year. “Restrained inflation, low-interest rates, and rising earnings provide valuation support and the basis for stocks to trend higher,” he said. Sandven added that there are favorable growth trends for communications stocks such as Netflix, along with companies in the tech, consumer discretionary, and health-care sectors.
Watch the CommSec TV Morning Report showing that the Dow Jones, S&P 500 & Nasdaq end on record highs during the first day of the Biden administration:
Loading ...Do you agree with the optimistic outlook for the stock market this year? Do you attribute it to the Democrats winning the elections? Let us know what you think. Drop a line or leave your comments below.
21 Comments
Wait a month and see the stock market slide bigly!
Biden is a crook and liar
The ONLY reason it’s up is because of what TRUMP done. Just wait, Biden will bottom out before long, he’s a crook and it will surface again as he did overseas where his son is concerned. It’s sad that anyone would vote for him knowing he’s crooked, but they did, so they will reap what they’ve sown. The old saying…Birds of a feather, flock together!
I agree with Biden is a thief and a liar
Hell no. Welcome to the beginning of the end. America has been heading in this direction for a long time, and it won’t be long before we are unrecognizable as the nation our forefathers dreamed of. Sad times.
Americans are going to seriously regret installing Biden into office, him and his administration reversing all of Trumps policies will cause great damage to the American people.
The left will take credit for every good thing Trump did even if they were against it before. The markets were on an upswing already. Give the liberals a couple months to ruin about everything. China will win under Biden and America will lose.
Ask me this time next year.
I Pray It Keep Going Up. Keep America Great Not China. Trump Did Every Thing To Help The American People Secede In Life He Lower Taxes Best President Ever No One Perfect On This Earth. The Left Hounded Him For Four Year Just Think What He Could Have Done In The Next Four Years. The America Peoples Needs To Take A Stand And Fixed The Voting Process And We Need To Start Now. It Like Anything Else The Rich Will Cheat And Lie To Get What They Want No Matter Who They Hurt Along The Way. One Thing For Sure Money Cant Buy Heaven.
I agree with all the above comments except here is my view on the dims, they are not Americans they are treacherous communist traitors that would not know how to an American if there life depended on it, there philosophy of life is lie, cheat, steal, and blame others for the exact thing that you have caused. President Donald Trump won the election hands down and the slime that is the democratic party cheated and stole it. it was not biden that had anything to do with the stock market but it is what President Trump left us with.
President Trump fulfilled all his campaign promises & more.
It was a rigged election & Trump will prevail with the far left being arrested & tried for their crimes of treason. It’s a sad dark time in America’s history & disgraceful to see such a GREAT President like President Trump being turned on like a pack of rabid animals.
Beijing Biden should be immediately & expeditiously removed from his stolen election along with all who made it possible.
He stole the election now the idiots think he is good for us.
Need to start an impeach Bozo campaign. Run it for 4 years like they did.
Actually, Biden is already costing us jobs- see oil exec. decision. At mid year,
at latest, I ‘lol be out of the market. Take the profits Trump created and run!
Oops, missed spelling on I’ll, sorry.
Are you kidding the market is controlled by the super big investors, they move the market however and whenever it profits them!
The stock market is booming because of President Trump. But it will all be destroyed with the radical left and their policies. You can see what they are going to do already with the ex.orders he already signed and still trying to impeach President Trump and try to destroy all of his supporters with the Bias News Media and the rich celebs etc. that dont live in the real world. They are already rioting and attacking the Police/law enforce and everybody that does not agree with them. Their is going to be a civil war if this left wing racist bias does not end. They are destroying the USA . The cancel culture / censorship that the left is doing and the left wing media is a disgrace and is effecting are childrens future. The NBA and NFL and PGA etc. joining in with the BLM and Antifa and others bias hate groups is the cause for the big divide. They are all about the money not the facts. Sickening
Is it just me. Or am I just seeing the Obama era rekindled. Nothing new. Globalist regime at it again. Trying to make America dependent on it’s government. Don’t they not know what there authority come from. We the People. Keep in mind, we are at war here in the United States of America. III%
LORD JESUS CHRIST ALMIGHTY PLEASE FOR GIVE OUR NASHION THEY KNOW NOT WHAT THEY HAVE DONE IN JESUS CHRIST ALMIGHTYS HOLY NAME AMEN
All the comments I read above are full of $#it. How could any sane person think that Trump is honest and Biden corrupt? Trump has never disclosed his taxes. According to him, he has been under audit for more than 5 years. He stole peoples money in a fraudulent University scheme; has gone bankrupt numerous times, always losing other people’s money; notoriusly refuses to pay contractors for work they completed; He is always crying foul when anything doesn’t go his way (He cried rigged/fixed elections in 2016 and 2020 before any voting began); has spent months lying, with no valid evidence, that he actually won the election last year; loves to live by “alternative facts” aka fake news, aka lies; he loves paling around with dictators and pushes away our Allies with democratically elected governments; he collected hundreds of millions of dollars supposedly for the legal fight against a free and fair election, while actually putting almost all of it into a PAC he controls with few restrictions on how he uses the money; and his so called charitable foundation lost its tax status because instead of using the money for anything charitable, it paid his personal expenses including a lavish portrait of himself.
Usually the beginning of any term is just a continuation of the previous administration. The telling will be this time next year.
If not for the Trump the market would fall to the lowest mark ever. I don’t think the Biden’s administration is willing and capable to even preserve it at this level.
How could people in their right mind say anyone else is a liar and thief when trump is the BIGGEST LIAR AND THIEF IN THE WORLD and they support him. Please send him more money so he can hide it but still go bankrupt again.