(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.)
* Dow up 0.83%, S&P 500 up 1.39%, Nasdaq up 1.97%
* FAANGs jump after Netflix results beat estimates
(Adds closing details; updates prices to close)
By Echo Wang
Jan 20 (Reuters) - U.S. stocks closed at record highs on Wednesday as Joe Biden was sworn in as the 46th U.S. president, while solid results from Netflix sparked a rally in shares of "stay-at-home" beneficiaries.
Shares of the world's largest streaming service Netflix NFLX.O surged 16.85% after the company said it would no longer need to borrow billions of dollars to finance its TV shows and movies. rest of the FAANG group, due to report results in the coming weeks, jumped with Google parent Alphabet Inc GOOGL.O rising 5.36%. The NYSE FANG+TM index .NYFANG gained 4.77%.
"It's a tech outperformance day which is pretty rare over the past two or three months as the cyclical rotation has kind of gotten underway," said Ross Mayfield, investment strategy analyst at Baird, in Milwaukee, Wisconsin. He added a lot of the move can be traced to Netflix.
"(Today was) just a reminder that the tech run had gotten extended... the FAANG names and some of the other S&P 500 tech names are still incredible operators and are going to be putting out incredible earnings quarters for the foreseeable future," Mayfield added, referring to Biden's proposed $1.9 trillion spending plan.
Biden will waste little time turning the page on the Trump era, aides said, signing 15 executive actions in the afternoon on issues ranging from the COVID-19 pandemic to the economy to climate change. not sure that the politics of inauguration day did much but certainly the expectation for a trillion plus in stimulus," Mayfield added.
The Dow has gained about 57% and the S&P 500 advanced about 68% since Donald Trump assumed office on Jan. 20, 2017, which compares with a 65% jump in the Dow and 75% gain in the S&P during the first term of the Obama administration.
Wall Street's main indexes scaled record highs in the past few months, with the blue-chip Dow jumping about 13% since the presidential elections in November, as investors bet on a strong economic recovery in 2021 on the back of COVID-19 vaccine rollout and a bigger pandemic relief plan.
Wrapping up results from major U.S. banks, Morgan Stanley (NYSE: MS ) MS.N slipped 0.2% despite posting quarterly profit that blew past estimates driven by strength in its trading business. broader banks index .SPXBK shed about 1.34%, declining for the third day.
With stock market valuations sitting near a 20-year high, investors are hoping corporate results and profit outlooks will help them determine to what degree the valuations are justified. Dow Jones Industrial Average .DJI rose 257.86 points, or 0.83%, to 31,188.38, the S&P 500 .SPX gained 52.94 points, or 1.39%, to 3,851.85 and the Nasdaq Composite .IXIC added 260.07 points, or 1.97%, to 13,457.25.
Procter & Gamble Co PG.N raised its full-year sales forecast for a second time as it benefited from sustained coronavirus-driven demand for cleaning products. Its shares, however, fell 1.25% after it warned that the pace of sales might slow as vaccines roll out. Group Inc UNH.N dipped 0.38% after the health insurer's quarterly profit slumped nearly 38%, weighed down by costs related to its programs to make COVID-19 testing and treatment more accessible for its customers. issues outnumbered declining ones on the NYSE by a 2.02-to-1 ratio; on Nasdaq, a 1.24-to-1 ratio favored advancers.
The S&P 500 posted 54 new 52-week highs and no new lows; the Nasdaq Composite recorded 336 new highs and four new lows.
Volume on U.S. exchanges was 13.66 billion shares, compared with the 12.83 billion average for the full session over the last 20 trading days.
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