Wall Street set to open flat, with Yellen speech awaited
- Author: Zachary Reyes Feb 18, 2017,
Feb 18, 2017, 6:25
Bank stocks jumped Tuesday on hopes that bigger profits are ahead, and USA indexes again pushed to record highs.
USA stocks initially fell in the early morning trading as investors became cautious after recent sharp gains, but then ticked up as many investors continued to make bullish bets on the so-called Trump rally.
The S&P 500 fell 2.03 points, or 0.1 percent, to 2,347.22.
The S&P 500 rose 1.5% this week after advancing 0.2% to 2,351.16 today, while the Dow Jones Industrial Average gained 1.7% this week after ticking up 4.28 points to 20,624.05. Four stocks fell for every three that rose on the New York Stock Exchange.
Despite most of the credit, Wall Street's winning streak has less to do with Trump, though, and more to do with a sound US economy, said Schwab's Randy Frederick in a phone call. "It just needs a little bit of a breather today".
He said he still sees stocks as better investments than bonds. Still, that was enough for investors to reignite the "Trump trade", which culminated on Monday with the S&P 500 topping $20 trillion for the first time ever.
TrueCar jumped 8.5% to $14.38 after the Santa Monica provider of localized information on auto prices reported results that beat analysts' forecasts and issued strong guidance for its full fiscal year.
Campbell Soup fell 6.5% to $58.48, the biggest drop in the S&P 500, after the company surprised analysts by reporting weaker revenue in its latest quarter than a year earlier.
Energy companies fell more than the rest of the market.
Energy stocks fell 0.75 percent as oil prices slipped.
Cynosure jumped 27.8 percent to $65.80 after Hologic said it would acquire the medical aesthetics company for $1.65 billion. The Nasdaq composite declined 13 points, or 0.2 percent, to 5,805.
Southwest Airlines rose 1.98 U.S. dollars, or 3.6%, to 57.29 USA dollars, United Continental rose 2.01 dollars, or 2.7%, to 75.75 dollars, Delta Air Lines rose 1.31 dollars, or 2.6%, to 51.17 dollars and American Airlines rose 97 cents, or 2.1%, to 47.54 dollars.
Treasury yields gave back some of the gains they made earlier in the week. The 10-year Treasury yield fell to 2.47 percent from 2.50 percent late Wednesday. The euro rose to $1.0672 from $1.0635.
Yields fell even as more encouraging reports on the economy arrived.