Stock market today: Biden inauguration sees best stock day since Reagan as S&P 500 SPX jumps 1 4%

He is also expected to immediately put the U.S. back in the Paris climate accord and promote clean energy in his infrastructure plan. Since the start of the year, cyclicals have outperformed, with energy gaining the most, up 15%, helped by higher oil prices. Biden’s policy got a big boost from the outcome of the Jan. 5 Senate runoff elections in Georgia, where two Democratic wins gave him an unexpected thin majority in the Senate. Each party has now 50 seats, and Vice President-elect Kamala Harris will cast any tie-breaking vote.

• AFP via Getty ImagesThe equity markets were on a roller coaster ride the past week as they took a plunge on Monday due to fears that Evergrande, China’s second largest property developer, would default on its debt leading to slower growth in China.
• President Joe Biden is a backer of alternate energy solutions, and promises to invest $2 trillion in clean energy infrastructure.
• With the reliance on the health-care industry for vaccines and Covid treatments, some investors have begun to think the industry will not be subjected to higher pricing.
• The firm also expects the 10-year Treasury yield to rise to a range of 1.25% to 1.75% by year-end, from a previous forecast of 1% to 1.5%.
• “The economic numbers have been coming in better than expected. … The vaccine logistics and news has been better than expected,” Wren said.

“I expect markets to continue to move in expectations of a robust recovery later in 2021 when vaccines are broadly distributed.” “This is the number he came in at. Where do negotiations go from here?” Quincy Krosby, chief market strategist at Prudential Financial, said of the $1.9 trillion package. She pointed to worries about a weakening economy, evident in December’s retail sales data, down a surprising 0.7%, and weekly jobless claims, at the worst level since August.

Even if Block Beats on Earnings, Stay Away From SQ Stock

With other https://1investing.in/ names reporting soon, we could be seeing the start of a pre-earnings rally. More than any other president, Trump pointed to stock markets gains as his own personal success, although he did not seem to consider stock market losses in the same light. Joe Biden, who is being sworn in as the 46th U.S. president Wednesday, has already proposed a $1.9 trillion relief package to help individuals, boost the vaccination effort and provide funds for state and local governments. Policy strategists expect that plan to be significantly pared back before it can get through Congress, but it is expected to be followed up with another in March that would promote job growth and infrastructure spending. StockCharts.comOn the Tuesday of the election between Trump and Biden the Index closed at 28,323. It also increased the next three days with Biden in the lead but it had not been called.

“We do like health care and certainly from a longer-term approach I think the quickness with which these vaccines were developed is an indication on what is going to happen in terms of medical breakthroughs.” With the reliance on the health-care industry for vaccines and Covid treatments, some investors have begun to think the industry will not be subjected to higher pricing. Weak oil prices hurt energy stocks during President Donald Trump’s administration, but he eased regulatory issues for the sector. One of the first moves Trump made was to clear the way for the Keystone XL pipeline. Ed Keon, chief investment strategist at QMA, said even though vaccinations started off slowly, they are beginning to roll out.

Stimulus and stocks

President John F. Kennedy’s 8.8% gain had been the best, followed by President Dwight Eisenhower, with 6.3%, and President Donald Trump, with 6.2%. President-elect Joe Biden moves into the White House in the coming week with the biggest stock market tailwind since a presidential Election Day going back to at least 1952. As of noon, he will officially be president of the United States, and his first few executive orders already promise to make waves. Although experts are already chiming in on how Biden will affect the stock market , he may not be the only leader worth watching.

Covid-19 remains a threat to the economy, and how much activity needs to be shut down will affect growth and corporate earnings. The hope is that the Biden administration will speed vaccinations as he has said he would do. Since the election is the best for any president since at least 1952, according to CFRA data.

01 p.m. ET: S&P 500, Nasdaq rally more than 1% amid Inauguration Day

Biden starts off his presidency with a roughly 13% post-Election Day market gain, the best S&P 500 performance between the election and the inauguration for any president going back at least to 1952, according to CFRA. The three major indexes closed at record highs, with the Dow Jones industrial average adding 257 points, or 0.8%, while the S&P 500 climbed 1.4%, and the tech-heavy Nasdaq jumped 2%. The stock market has been surging for months, despite the economic anguish caused by the coronavirus pandemic. The Nasdaq has more than doubled since its pandemic low point back in March.

On Wednesday, all eyes turned to the inauguration of President-elect Joe Biden, which took place at the West Front of the Capitol just noon before in a scaled-down, socially distant event. A preview of the spending battles that lay ahead emerged on Tuesday during the Senate confirmation hearing for Biden’s nominee for US Treasury Secretary, Janet Yellen. The recovery also started to stall in the final three months of 2020 as surging COVID-19 infections ushered in business-sapping restrictions.

Biden also announced a sweeping plan to combat the pandemic, which includes a nationwide vaccine campaign to speed up the rollout. “Other things are going on in the back room. Bond yields have moved up of late, and it was a change. It gave you a sense of how fast rates can move,” said James Paulsen, chief investment strategist at Leuthold Group. President Joe Biden is a backer of alternate energy solutions, and promises to invest $2 trillion in clean energy infrastructure. Despite the longer term implications for oil, it seems investors are still excited. That is because the newly sworn-in president has also unveiled a $1.9 trillion stimulus plan.

Midday Update: S&P 500, Nasdaq Set All-Time Highs

As he takes office, he already has big plans for his first few days in the White House. He will rejoin the Paris climate deal, likely scrap permits for the Keystone XL pipeline and introduce new immigration policy. With just hours to go until a new administration, keep a close eye on the stock market and be sure to follow along with Inauguration Day festivities. You can follow events live on Twitter or through live blogs like this one from CNBC.

Biden’s promise of the $1.9 trillion relief package he announced Thursday is one of the reasons for the stock market’s surge, and it will be a big focus of markets in the week ahead as investors handicap its chances of winning congressional approval. Looking at the moves today, it seems as if new President Joe Biden may not be all that bad for the stock market, and for tech stocks. While regulatory concerns remain, the strength of Big Tech shone on Wednesday. Or perhaps investors are simply celebrating an estimate-beating earnings report from Netflix.

The second-best first-term president was John F. Kennedy with an 8.8% gain from election to inauguration. It rose 17.0% from his election day and 10.5% from his inauguration to late September 2017. It is only using inauguration dates that Trump’s Dow and Nasdaq returns are ahead of Biden’s by 0.8% and 2.0%, respectively, but Biden’s S&P 500 return has returned 6.7% more than Trump’s. The stock market has not crashed under Biden as Trump predicted as seen in this debate video. After digesting all this, the markets rallied to close higher for the week with the Dow and S&P 500 up 0.6% and 0.5%, respectively, while the Nasdaq was flat. However, these and other issues, such as the continued impact from the Delta coronavirus variant, could lead to more volatility until a large number of companies report September quarter results in the second half of October.

“The huge rally we had suggests the market is looking past the virus, but the degree of the recovery of the economy is not a sure thing yet,” he said. “Everybody expects a rebound in the second half. The question is how strong will it be. If you get a big stimulus package o top of the last stimulus package we got, that rebound could really be much stronger than expected.” The Biden agenda is expected to result in a faster-growing economy, a stronger stock market and higher interest rates in its first year.

Inauguration Day: Live Updates

In his final hours in office, President Donald Trump granted pardons and commuted sentences for 143 people early Wednesday, including a pre-emptive pardon to former White House strategist Steve Bannon. Not all of Biden’s proposals are being embraced by the business community, including his intention to raise the corporate tax rate and capital gains tax. But Mills believes the Street is “pricing in” an “increase in investment taxes, but probably in the 28% range,” he says, instead of Biden’s proposed 39.6% figure. Morgan Stanley posted earnings and revenue that topped estimates on solid trading and wealth management results. His stimulus proposal calls for direct payments of $1,400 to most Americans and additional unemployment benefits as well as state and local government aid.

Of course, what does a high capital adequacy ratio indicate markets respond to many forces outside a chief executive’s control, and neither Trump nor Biden can take full credit for the stock markets recent rise. Gains for stocks have also been accelerating since Biden’s election, before his inauguration, on enthusiasm about COVID-19 vaccines and hopes that he and Congress can deliver more stimulus for the economy. The bump for stocks between the most recent Election Day and Biden’s inauguration is bigger than Trump’s bump before his inauguration. Stock strategists have said the Biden stimulus proposal accelerates a market rotation that was already beginning, as investors shift into cyclicals from growth names. “We’re leaning more toward cyclicals,” said Wren, but added he still likes technology.

Biden’s Stock Markets Are Still Ahead Of Trump’s Even With September’s Weakness

StockCharts.comBetween Biden’s election and last Friday the S&P 500 returns were better than the Dow’s. Biden’s market returns were again substantially above Trump’s by 10.0% from when the election was called and 6.7% from his inauguration. AFP via Getty ImagesThe equity markets were on a roller coaster ride the past week as they took a plunge on Monday due to fears that Evergrande, China’s second largest property developer, would default on its debt leading to slower growth in China. Concerns about the U.S. government reaching its debt ceiling and when the Fed will start tapering also played in the market’s gyrations.

One is inflation could move higher as demand picks up in a recovering economy or build as the dollar and debt burden grows. Economists, however, see higher inflation as temporary at some time this year and not a problem at this point. “All of these cyclicals stocks have moved in advance of what we think will be a higher rate move. Rates have moved up to support that idea,” Wilson said. “We think they could go up quite a bit more over the course of the next several months.”

Political strategists expect Biden will get his stimulus package but it will be trimmed down. Ed Mills, Washington policy analyst at Raymond James, said the package could be cut to about $1 trillion based on the size previously discussed by House Speaker Nancy Pelosi and outgoing Treasury Secretary Steven Mnuchin. If history holds, Biden’s stock market should continue to do well, since the average first-year gain for Democratic presidents is 11.3%, according to CFRA.

Biden also plans to sign more than a dozen executive orders to reverse many of those issued by Trump, including the so-called Muslim travel ban and the construction of a wall along the U.S.-Mexican border. “D.C. is going to be there with more spending, or consumers are going to be there with more spending if they have the ability to get to a post-vaccine world sooner,” he said. There will be heightened security surrounding the inauguration after a mob of Trump supporters assaulted the Capitol while Congress was in the process of confirming the Electoral College vote.

CFRA’s Sam Stovall points out that “since JFK, the S&P 500 gained an average 3.5% in the first 100 days of a new Democratic administration, rising in price for all five newly-elected presidents except Jimmy Carter,” he wrote in a Wednesday note. The S&P 500’s performance on Wednesday—when it closed up almost 1.4%—was the largest Inauguration Day pop since 1985, when the S&P 500 rose 2.3% on the start of President Ronald Reagan’s second term, according to LPL Financial data. It also handily beat the 0.3% jump experienced by the index during the inauguration of President Donald Trump in 2017. Speaking at a press conference prior to his departure from Washington, DC, Trump touted the strength of the US stock market during his time in office and its comeback from last year’s pandemic lows.

Biden’s policies could accelerate the rotation to cyclical stocks that has already been underway. StockCharts.comTrump’s return of 16.0% since his inauguration is the metric that has the best outperformance vs. Biden at 14.0%. The post-election to late September timeframe saw the Nasdaq with the highest performing Index for Trump, coming in at 23.7%, but was still short of Biden’s 26.5%. Procter & Gamble raised its fiscal 2021 forecast and said revenue last quarter jumped on higher pandemic demand for cleaning products.

Main urban areas in Japan, including Tokyo, are under a state of emergency, with evening dining at restaurants discouraged. Critics say that’s not enough, as deaths related to COVID-19 have been rising. The yield on the 10-year Treasury rose to 1.10% from 1.07% late Tuesday.

A better-than-expected start to earnings reporting season is also helping to lift the market Wednesday. Analysts came in with low expectations, forecasting the big companies in the S&P 500 will report a fourth straight drop in earnings per share because of the damage from the pandemic. But the vast majority of the earliest reports have managed to top forecasts. The hope on Wall Street is that such stimulus will help carry the economy until later this year, when more widespread COVID-19 vaccinations get daily life closer to normal. Such hopes have helped stocks and Treasury yields rise, even as theworsening pandemicdigs a deeper hole for the economy.