New York – Factbox: U.S. Stock Performance On Dates A New President Takes Office

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    A man sells hats reading "Make America Great Again" outside the New York Stock Exchange (NYSE) prior to the inauguration of U.S. President-elect Donald Trump, in Manhattan, New York City, U.S., January 20, 2017 REUTERS/Stephen YangNew York – Since the launch of the benchmark S&P 500 index in 1957, U.S. stocks have generally not fared well on the day a new president assumes office from a predecessor.

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    But the market bucked that trend on Friday as Donald Trump took the oath of office as the 45th U.S. president, succeeding Barack Obama. The S&P rose 0.34 percent, the Dow Jones Industrial Average gained 0.48 percent and the Nasdaq Composite climbed 0.28 percent.

    The last time that the S&P or the Dow rose on the day a new president was inaugurated was Jan 20, 1961, when John F. Kennedy was sworn in to succeed Dwight Eisenhower; the S&P gained 0.32 percent and the Dow added 0.31 percent. The Nasdaq did not yet exist.

    Factoring in Friday’s gain, the S&P has posted a median decline of 0.4 percent and an average loss of 1.04 percent on the day that power was transferred from one president to another, dating back to the Eisenhower administration, when the index was launched. For the Dow, the median decline is 0.46 percent and the average fall is 0.99 percent.

    Nasdaq, which launched in February 1971, has a better track record. It has been higher on more than half the inauguration days of a new president since its inception. On seven transition-of-power days since Gerald Ford took office in 1974, it has posted a median gain of 0.04 percent but an average fall of 1.02 percent, largely due to a 5.79 percent plunge on Obama’s first day.

    The following table shows the percentage changes on the day each new president took office from Eisenhower on. It does not include second-term inaugurations.

    President Year S&P Dow Nasdaq

    Donald Trump 2017 +0.34 +0.48 +0.28

    Barack Obama 2009 -5.28 -4.01 -5.79

    George W Bush* 2001 — — —

    Bill Clinton 1993 -0.40 -0.43 +0.09

    George HW Bush 1989 -0.09 -0.17 +0.15

    Ronald Reagan 1981 -2.02 -2.09 -1.42

    Jimmy Carter 1977 -0.85 -1.00 -0.48

    Gerald Ford** 1974 -0.87 -0.97 +0.04

    Richard Nixon 1969 -0.33 -0.46 na

    Lyndon Johnson*** 1963 -2.81 -2.89 na

    John Kennedy 1961 +0.32 +0.31 na

    Dwight Eisenhower**** 1953 +0.5 +0.36 na

    Mean -1.04 -0.99 -1.02

    Median -0.40 -0.46 +0.04

    * GW Bush was sworn in on a Saturday. The market was closed

    ** Ford was sworn in on Aug 9, 1974, following Nixon’s resignation

    *** Johnson was sworn in on Nov. 22, 1963, following Kennedy’s assassination

    **** The S&P 500 was launched in March 1957, but S&P Dow Jones Indices provides back-tested data for dates that precede its launch


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