Major indexes in the New York Stock Market started rising on the 20th, ahead of the inauguration of the new US President Joe Biden and good corporate performance.
As of 9:53 a.m. (Eastern Time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) traded at 31,007.38, up 76.86 points (0.25%) from the battlefield.
The Standard & Poor’s (S&P) 500 index traded at 3,823.16, up 24.25 points (0.64%) from the battlefield, and the technology stock-oriented NASDAQ index, up 154.73 points (1.17%) to 13,351.90.
The mayor is keeping an eye on President Biden’s inauguration ceremony and performance of major companies.
Biden-elect becomes the 46th President of the United States on this day.
Market participants are also paying attention to the message of the new President Biden at the inauguration ceremony scheduled at noon.
As President Biden has already announced the introduction of an additional $1.9 trillion in stimulus measures, it is expected to reaffirm its aggressive economic stimulus policy.
Finance Minister Janet Yellen also confirmed the policy of aggressive fiscal spending expansion at a confirmation hearing on the previous day.
On the other hand, there are concerns that violent protests by Donald Trump supporters may recur before and after Biden’s inauguration ceremony.
The performance of major companies also provided vitality to the stock market.
Netflix, which announced its earnings after the market close the day before, saw a sharper-than-expected increase in new subscribers in 4Q.
The truth of the pandemic beneficiary companies was confirmed again.
Netflix revealed that it would also review the purchase of treasury stocks, and the stock price soared nearly 15% in the pre-opening transaction that day.
Amid the surge in Netflix, the stock price of its rival, Disney, also rose 3% before opening.
Morgan Stanley, a large bank, also recorded net income and sales in the fourth quarter, far exceeding market expectations, recording a 2% increase in stock prices before opening.
Corporate earnings in 4Q are generally better than market expectations.
On the other hand, the spread of the novel coronavirus infection (Corona 19) continues to be unstable.
Due to the spread of mutant viruses, major countries in Europe are stepping up blockade measures one after another.
In the United States, the total death toll has exceeded 400,000.
New York stock market experts predicted that strong earnings and expectations for stimulus would support investor sentiment.
JJ Kinahhan, chief market strategist at Ameritrade, said: “As investors are anticipating major changes in the new government policies and outlook, all other issues will be pushed back to Washington events.”
“We started the performance season pretty strong,” said Chris Larkin, director of E-Trade. “What’s more encouraging is the positive guidelines companies are expecting.”
“Even though some friction is inevitable, the light will begin to appear at the end of the tunnel,” he added.
Stock markets in major European countries are also strong.
The pan-European index Stoxx 600 rose 0.74%.
International oil prices also rose.
Western Texas crude oil (WTI) prices for February moved 1.21% to $53.62, up 1.09% from the previous trading day, and Brent crude to $56.51.
/yunhap news