January 20: Market Summary
Stocks, Nasdaq reach new all time high as Biden administration takes over
Here are today’s market moves:
S&P 500 up 1.39% to 3,851.85
Dow Jones up 0.83% to 31,188.38
Nasdaq up 1.97% to 13,457.25
Gold: $1,869.88
Bitcoin: $34,640
US10Y: 1.082%
What happened?
Stocks climbed on Wednesday, with the S&P 500 reaching a new record, contributing to a rally that has been driven by expectations for large-scale economic stimulus from the incoming Biden administration.
Netflix climbed more than 14 percent after the streaming service said on Tuesday that it had more than 200 million customers and no longer needed to borrow money for its day-to-day operations.
Earnings results so far have been better than expected, with 88% of reporting companies beating estimates, according to FactSet. That, along with expectations of further profit growth this year and a rebound in economic activity, should act as a foundation for further stock market gains, analysts said.
After he is inaugurated as president on Tuesday, Joseph R. Biden Jr. will sign a flurry of executive orders, including ones to extend moratoriums on evictions and foreclosures, and continue a pause on federal student loan interest and principal payments.
Investors remain optimistic that fiscal stimulus is supporting businesses through the damage wrought by the Covid-19 pandemic, with expectations of further spending by Democrats to keep the economy on track.
On Tuesday, Janet Yellen, Mr. Biden’s nominee for Treasury secretary, reiterated the new administration’s plans for a large fiscal stimulus package during her confirmation hearing in the Senate. The plans received some criticism from Republican lawmakers over concerns about increasing the federal budget deficit, a possible sign of legislative battles to come.
This Week
Monday: Martin Luther King Day
Tuesday: The Senate confirmation hearing of Janet Yellen as Treasury secretary begins; Earnings expected from Bank of America, Goldman Sachs, and Netflix
Wednesday: Joe Biden takes office as U.S. president; Earnings expected from Morgan Stanley, United Airlines, and Procter and Gamble
Thursday: Weekly jobless claims. Earnings expected from IBM and Intel
Friday: Earnings expected from Ally Financial