Wall Street treads water ahead of Trump's Tuesday speech
- Author: Zachary Reyes Mar 02, 2017,
Mar 02, 2017, 2:43
The US dollar also rose, while Treasuries declined.
The last time the Dow gained 1,000 points between psychologically important points was back in 1999: It hit 10,000 on March 29, 1999 and then jumped to 11,000 on May 3, 1999. After rising the first 13 trading days of 1987 (12 of them making new highs), the Dow gained almost another 30% over the following eight months!
Fellow pharmaceutical stock Endo International plc (NASDAQ:ENDP) is edging lower ahead of the open, as well, even though the company posted better-than-expected quarterly results. The index rose almost 5 percent from November 9 to Friday, Dec. 9.
In his primetime speech, Trump cataloged steps his administration had already taken to cut regulatory measures meant to stave off corruption or protect consumers and the environment, but which can also create hurdles and reduce profits for corporations. "The market has been looking for reassurance that Trump intends to follow through on his campaign promises for fiscal spending, tax cuts and deregulation", said James Woods, global investment analyst at Rivkin in Sydney. The promises have helped send US stock benchmarks to records, but Trump offered little by way of detail.
Analysis: Trump shifts from doom-and-gloom to a more optimistic vision. Bank of America rose 3.8 percent and ConocoPhillips rose 3.1 percent. JPMorgan Chase climbed 2.9% to $93.24.
LUMBER JACKED: Builders FirstSource, a maker of building materials, jumped 10.1% to $14.25, getting a boost from rising lumber prices.
Auction house Sotheby's beat quarterly earnings and revenue expectations, causing its stock to jump almost 16 percent. The sector is up 8.3 percent this year. On the Nasdaq, 2,108 issues rose and 624 fell. However, the UK's FTSE 100 Index added 0.1 percent, while Germany's DAX Index rose 0.2 percent.
MIXED DATA: The Commerce Department said US businesses boosted their orders for long-lasting manufactured goods in January by 1.8 percent, the largest amount in three months. Australia's S&P/ASX 200 slipped 0.1%.
The Russell 2000 is up 56.51 points, or 4.2 percent. Brent crude, which is used to price worldwide oils, fell 34 cents, or 0.6 percent, to close at $55.59 a barrel in London.
Influential New York Fed President William Dudley said Tuesday night that tightening monetary policy had become "more compelling", making a rate increase more likely for March 15. The dollar fell to 112.37 yen from 112.80.