Art Cashin, UBS Financial services director of floor operations, joins ‘Squawk on the Street’ to discuss the market reaction to Wednesday’s unrest when a violent mob of Trump supporters sought to prevent the confirmation of Joe Biden’s electoral victory. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
The Dow Jones Industrial Average advanced 221 points, or 0.7%. At one point, the Dow was up more than 300 points. The Nasdaq Composite popped 2.3% — breaking above 13,000 for the first time — as shares of Microsoft, Apple and Alphabet all gained more than 2%. The S&P 500 advanced 1.3% to trade above 3,800 for the first time.
Sentiment on Wall Street got a boost after the Institute for Supply Management said its index for nonmanufacturing activity in the U.S. rose to 57.2 in December from 55.9 in November. Economists polled by Dow Jones had forecast a print of 54.5.
Walgreens Boots Alliance rose 6.5% to lead the Dow higher on the back of stronger-than-expected quarterly results. Shares of JPMorgan Chase rose 3.2% after the banking giant was upgraded to buy from neutral by an analyst at Bank of America. The tech and consumer discretionary sectors rose 2.3% and 2%, respectively, to lift the S&P 500.
American Express fell more than 1.6% after The Wall Street Journal reported that federal investigators were probing the company’s card sales practices, slightly weighing on the Dow.
On Wednesday, pro-Trump rioters stormed the U.S. Capitol just as lawmakers started the procedural process of counting the Electoral College votes and formally declaring Biden the winner. Still, the Dow and the S&P 500 closed higher on Wednesday as traders looked beyond the event amid increasing prospects for more fiscal stimulus.
“There should be no mystery as to why the markets didn’t care about what happened in the Capital yesterday, however disturbing, disgraceful, and embarrassing it was,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “It’s because it has no bearing on the direction of the economy, earnings and interest rates. It’s that simple.”
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