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Mega-caps power market to new records on Inauguration Day
20-Jan-21 16:15 ET
Dow +257.86 at 31188.38, Nasdaq +260.07 at 13457.25, S&P +52.94 at 3851.85

https://www.briefing.com/stock-market-update

[BRIEFING.COM] Each of the major indices closed at fresh record highs on Wednesday in a session that featured the mega-caps as leaders and Joe Biden inaugurated as the 46th president. The Nasdaq Composite (+2.0%) outperformed with a 2% gain, followed by gains in the S&P 500 (+1.4%), Dow Jones Industrial Average (+0.8%) and Russell 2000 (+0.4%).

Shares of Apple (AAPL 132.03, +4.20, +3.3%), Microsoft (MSFT 224.34, +7.90, +3.7%), Amazon (AMZN 3263.38, +142.62, +4.6%), Alphabet (GOOG 1886.90, +96.04, +5.4%), and Facebook (FB 267.48, +6.38, +2.4%) gained between 2-5%. The Vanguard Mega Cap Growth ETF (MGK 207.13, +5.20, +2.6%) increased 2.6%.

Netflix (NFLX 586.34, +84.57, +16.9%) was credited as a supporting catalyst for the mega-cap rally, as shares surged 17% after the company provided bullish subscriber results, guidance, and commentary. Notably, Netflix said it believes it no longer needs to raise external financing for day-to-day operations.

In turn, the S&P 500 communication services (+3.6%), information technology (+2.0%), and consumer discretionary (+2.3%) sectors claimed today's top spots.

Every other sector, except financials (-0.5%), as well as small-cap and mid-cap stocks contributed to the steady advance, albeit to a lesser extent. The financials sector was undercut by negative reactions to better-than-expected earnings reports from Morgan Stanley (MS 74.84, -0.15, -0.2%), U.S. Bancorp (USB 45.58, -2.49, -5.2%), and BNY Mellon (BK 42.49, -3.33, -7.3%).

Dow components UnitedHealth (UNH 350.84, -1.35, -0.4%) and Procter & Gamble (PG 131.93, -1.67, -1.3%) also closed lower despite beating EPS estimates, which factored into the relative underperformance of the Dow, versus the S&P 500 and Nasdaq.

U.S. Treasuries finished little changed in a tight-ranged session. The 2-yr yield decreased one basis point to 0.12%, and the 10-yr yield remained unchanged at 1.09%. The U.S. Dollar Index finished little changed at 90.46. WTI crude futures increased 0.6%, or $0.30, to $53.28/bbl.

Reviewing Wednesday's economic data, which were non-events:

The NAHB Housing Market Index decreased to 83 in January (Briefing.com consensus 88) from 86 in December.
The weekly MBA Mortgage Applications Index decreased 1.9% following a 16.7% spike in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Housing Starts and Building Permits for December, and the Philadelphia Fed Index for January on Thursday.

Russell 2000 +9.4% YTD
Nasdaq Composite +4.4% YTD
S&P 500 +2.6% YTD
Dow Jones Industrial Average +1.9% YTD

Market Snapshot
Dow 31188.38 +257.86 (0.83%)
Nasdaq 13457.25 +260.07 (1.97%)
SP 500 3851.85 +52.94 (1.39%)
10-yr Note 0/32 1.089
NYSE Adv 1990 Dec 1119 Vol 992.2 mln
Nasdaq Adv 2102 Dec 1651 Vol 6.7 bln

Industry Watch
Strong: Communication Services, Information Technology, Consumer Discretionary
Weak: Financials, Consumer Staples

Moving the Market

-- Mega-caps power market to fresh record closes

-- Netflix (NFLX) shares climbed 17% after earnings report

-- Joe Biden inaugurated as the 46th president

Semiconductor stocks taking a breather
20-Jan-21 15:25 ET
Dow +240.03 at 31170.55, Nasdaq +280.27 at 13477.45, S&P +56.03 at 3854.94

[BRIEFING.COM] The S&P 500 continues to trade higher by 1.5% amid convincing leadership from most mega-cap stocks. The small-cap Russell 2000 is hanging in there with a 0.4% gain.

Interestingly, the Philadelphia Semiconductor Index (-0.2%) is not participating in today's advance after the semiconductor index rallied more than 3.0% yesterday on no specific news catalysts. Cree (CREE 114.86, -5.23, -4.4%) is the weakest performer in the index.

WTI crude futures settled higher by 0.6%, or $0.30, to $53.28/bbl.