USA markets close higher, Trump's tax announcement coming soon

Stocks, futures and the US dollar all responded with glee after President Donald Trump said Thursday tax cuts were next on his agenda while describing the potential plan as "phenomenal", Reuters reported Friday.

President Donald Trump said on Thursday that in coming weeks he would announce something "phenomenal" in terms of tax although he offered no further details.

Trump has pledged significant fiscal stimulus for the economy through tax cuts and additional spending measures.

During a meeting with airline executives on Thurday, Trump promised a "phenomenal" tax plan, comments that sent stock prices and the dollar higher overnight, Reuters reports.

U.S. Treasury prices fell, snapping a three-day streak of declining yields; the benchmark 10-year yield finished 7 bps higher at 2.40%. (NYSE: NKE) rose 1.7%.

The mid-cap FTSE 250 index reversed earlier losses to gain 0.1 per cent and post a new record closing level of 18,627.59 points. Gold was down 0.2 percent after hitting a three-month high on Thursday.

On the data front, the USA import price index rose to 0.4% in December from 0.5% the previous month which was revised up from 0.4%.

S&P 500 e-minis were up 2.5 points, or 0.11 percent, with 100,854 contracts traded.

But concerns are lingering that U.S. President Donald Trump, who is eager to reduce the trade deficit, may lambaste Japan again for manipulating the currency markets if the U.S. dollar extends gains against the yen.

Evidence of Chinese growth lifted shares of commodity-related sectors, in particular blue chip mining, across Europe helping regional indexes inch higher back toward last month's peaks. French lender Societe Generale reported lower fourth-quarter net income that nonetheless beat analysts' forecasts and its shares added 2.29 percent.

The dollar hovered near an 11-day high against a basket of major rivals, as Trump and Japanese Prime Minister Shinzo Abe opened two days of talks looking to cement a decades-old alliance.

The three indexes were pushing further into record territory after closing at new highs on Thursday.

The Dow Jones Industrial Average .DJI rose 144.02 points, or 0.72 percent, to 20,198.36, the S&P 500 .SPX gained 15.69 points, or 0.68 percent, to 2,310.36 and the Nasdaq Composite .IXIC added 38.32 points, or 0.67 percent, to 5,720.78. USA crude prices were up 1.77 percent at $53.94 a barrel after reports that Organization of the Petroleum Exporting Countries members delivered more than 90 percent of the output cuts they pledged in a landmark deal that took effect in January.

Spot gold was up 0.02 percent at $1,230.78 an ounce by 2:24 p.m. EST (1924 GMT), while USA gold futures for April delivery settled down 0.07 percent at $1,235.90.

Benchmark Brent crude settled up 51 cents at $55.63 per barrel while US light crude settled 66 cents higher at $53.00.

  • Zachary Reyes