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NEW YORK (Dow Jones) – Wall Street continued its upward trend and set new records on Wednesday with the swearing-in of US President Joe Biden. The fact that the ceremony did not lead to the feared outbreaks of violence by the supporters of the rejected president was positive Donald Trump came. Brsians spoke of a peaceful transfer of power. For the first ten days of his term in office, Biden will set off a firework of decrees. Brsians are excited to see what surprises he will conjure up out of his hat. It is expected that he will reverse many of his predecessor’s resolutions. In his inaugural address, Biden went tough with Trump without naming him. He also stressed that he wanted to overcome the division in the country.
The Dow Jones index rose 0.8 percent to 31,188 points. The S&P 500 advanced 1.4 percent – the Nasdaq composite by as much as 2 percent. Among the tech stocks, Netflix put people in a good mood. The Nasdaq Composite and the S&P 500 made all-time highs. There were a total of 2,006 course winners and 1,145 losers at Nyse. 95 titles closed unchanged. “The market has advanced with hopes of a faster economic recovery,” said Spartan Capital’s chief market economist Peter Cardillio, with a view to Biden’s billion dollar stimulus package. However, the market seems a bit over-bought. But politics only played a subordinate role on the stock exchange, because the growing reporting season is increasingly determining the mood among investors.
Netflix shares benefit from record number of subscribers
Netflix shares shot up 16.9 percent. The streaming service had once again proven to be the beneficiary of the pandemic and cracked the 200 million subscriber mark for the first time – despite competition from new providers such as Disney + or Apple TV +. In tow, Disney and Amazon rose 0.8 and 4.6 percent, respectively.
Morgan Stanley benefited from strong investment banking and a surge in income from stocks and bonds in the fourth quarter. Income and profit increased significantly more than expected on the market. After initial premiums, the share turned 0.2 percent into the red. As was previously observed with other US banks, good business cards cannot encourage investors to buy. After poor earnings, the Bank of New York Mellon lost 7.3 percent.
Procter & Gamble fell 1.3 percent. The consumer goods company had earned and implemented more in its second quarter than expected. The Group raised its forecast for the full year 2020/21. However, the company warned of a possible downturn in view of the corona crisis. Unitedhealth stocks were down 0.4 percent. The healthcare provider had done more in the fourth quarter, but earned less. Nevertheless, the results were better than expected.
Alibaba shares rose 5.5 percent. Company founder Jack Ma, from whom there had been no sign of life in the past three months, had reappeared. Ma’s reappearance has dampened concerns about the future of the online giant, which is in the Beijing line of fire, it said.
Ebay lost 1.4 percent. The company announced that it was considering “strategic options” for its Korean subsidiary. Observers saw a connection with speculation that the Korean competitor Coupang was preparing to go public. In the spring there were also rumors that Coupang wanted to buy a larger stake in Ebay Korea.
Gevo, a provider of renewable energy sources, is there new shares out. Those already traded collapsed by 21.4 percent.
Dollar is recovering slightly
The dollar rebounded somewhat – the euro fell to $ 1.2106 from 1.2158 the day’s high. However, the experts at UBS asset management expect the US currency to continue to weaken, even if the administration under the new President Biden does not strive for a dollar weakness in order to gain competitive advantages. UBS expert Mark Haefele was playing on the statement of the new US Treasury Secretary Janet Yellen how the market should determine the course. The prospect of a new stimulus package should lead to “less upward pressure” on US bond yields and thus also on the dollar, he added.
Oil prices continue their upward movement. In addition to the expectation of a new stimulus package in the US, which should increase demand, there are also hopes of a decline in US inventory data. The price of a barrel of the US WTI variety rose 0.5 percent to $ 53.24. For the European variety Brent it went up 0.3 percent to 56.08 dollars. This means that oil prices rose for the second day in a row.
Despite the positive equity environment, bond prices rose slightly. The US 10-year Treasury yield fell 0.7 basis points to 1.09 percent. Meanwhile, investors stuck to inflation-linked bonds. This was taken as a sign that investors were confident that the Federal Reserve would keep interest rates constant even as the economy picked up. The yield on 10-year inflation-linked bonds fell to minus 1.047 after minus 1.032 percent most recently.
Concerns about inflation also fueled the gold price. The troy ounce rose 1.6 percent to $ 1,870, its highest level in almost two weeks.
INDEX last +/-% absolute +/-% YTD
DJIA 31,188.38 0.83 257.86 1.90
S&P 500 3,851.85 1.39 52.94 2.55
Nasdaq Comp. 13,457.25 1.97 260.07 4.41
Nasdaq-100 13,296.45 2.31 299.91 3.17
Maturity Yield Bp to VT Yield VT +/- Bp YTD
2 years 0.13 -1.2 0.14 -107.7
5 years 0.44 -0.5 0.45 -148.2
7 years 0.76 -1.7 0.78 -148.7
10 years 1.09 -0.7 1.09 -135.8
30 years 1.83 -1.0 1.84 -124.0
Forex last +/-% Tue, 9:01 a.m. Tue, 5:20 p.m.% YTD
EUR / USD 1.2106 -0.19% 1.2154 1.2120 -0.9%
EUR / JPY 125.33 -0.55% 126.10 126.07 -0.6%
EUR / CHF 1.0771 -0.06% 1.0790 1.0765 -0.4%
EUR / GBP 0.8864 -0.35% 0.8891 0.8901 -0.8%
USD / JPY 103.53 -0.35% 103.74 104.04 + 0.2%
GBP / USD 1.3657 + 0.17% 1.3672 1.3615 -0.1%
USD / CNH (offshore) 6.4633 -0.27% 6.4657 6.4826 -0.6%
BTC / USD 34,672.25 -5.45% 35,820.25 37,034.25 + 19.4%
ROHL last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 53.28 52.98 + 0.6% 0.30 + 9.8%
Brent / ICE 55.97 55.90 + 0.1% 0.07 + 8.2%
METALS last previous day +/-% +/- USD% YTD
Gold (spot) 1,870.05 1,840.37 + 1.6% +29.68 -1.5%
Silver (spot) 25.86 25.23 + 2.5% +0.63 -2.0%
Platinum (spot) 1,112.90 1,089.38 + 2.2% +23.53 + 4.0%
Copper future 3.65 3.64 + 0.5% +0.02 + 4.0%
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DJG / DJN / flf
(END) Dow Jones Newswires
January 20, 2021 4:31 PM ET (21:31 GMT)