Wall Street hits records again on Trump economy hopes
Wall Street’s main stock indexes rose to fresh all-time closing highs on Friday as a spike in oil prices supported energy shares and investors renewed their optimism about President Donald J. Trump’s economic agenda.
NEW YORK — Wall Street’s main stock indices rose to fresh alltime closing highs on Friday as a spike in oil prices supported energy shares and investors renewed their optimism about President Donald J. Trump’s economic agenda.
The S&P 500 tallied its fourth straight session of gains, a day after Mr. Trump vowed a major tax announcement in the next few weeks.
The benchmark S&P 500 has surged 8.30% since Mr. Trump’s Nov. 8 election, fueled by expectations he will lower corporate taxes, reduce regulations and increase infrastructure spending. The rally had stalled amid concerns over Mr. Trump’s protectionist stance and lack of clarity on policy reforms.
“Investors were worried that the administration may have gotten off track and was pursuing other items,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.
“Tax cuts have gotten put back on the front burner,” Ms. Forrest said, adding, “We are looking for gains in the economy at large from this, not just (earnings per share) gains in stocks.”
The Dow Jones Industrial Average rose 96.97 points, or 0.48%, to end at 20,269.37, the S& P 500 gained 8.23 points, or 0.36%, to 2,316.10 and the Nasdaq Composite added 18.95 points, or 0.33%, to 5,734.13.
The S&P and Dow closed at a record high for a second straight session, while the Nasdaq extended its streak of record closes to a fourth day.
Energy shares gained 0.80%. Oil prices rose more than 1% after reports that the Organization of the Petroleum Exporting Countries members delivered more than 90% of the output cuts they pledged in a deal that took effect in January. Energy could continue to be in focus this week, when a host of small-cap companies in energy are due to report results.
The S&P financial sector ended up 0.20%. The group initially moved higher after Daniel Tarullo, the top Federal Reserve off icial charged with financial regulation, said he would resign, giving more room for Mr. Trump to reshape the Fed’s policy making staff.
The focus on Washington comes as large US companies were set for their second straight quarter of profit increases after several periods of declines.
With more than 70% of the S&P 500 having reported results, fourth- quarter earnings are on track to have climbed 8.40%, which would be the best performance since the third quarter of 2014, according to Thomson Reuters I/B/E/S.
“We are seeing a pretty solid rate of beats and we’re out of the earnings recession,” said Jason Ware, chief investment off icer at Albion Financial Group in Salt Lake City.
Activision Blizzard surged 18.90% after the videogame publisher reported higher-thanexpected revenue and set a $1-billion share buyback program. Its shares gave the biggest boost to the S&P 500 and the Nasdaq.
Skechers USA jumped 19.30% after the footwear maker’s fourth-quarter revenue beat expectations.
Sears Holding soared 25.60% after the struggling retailer said it would cut costs by $1 billion and reduce debt and pension obligations by at least $1.5 billion this year.
Advancing issues outnumbered declining ones on the NYSE by a 2.60-to-1 ratio; on Nasdaq, a 2.05-to-1 ratio favored advancers. The S&P 500 posted 48 new 52week highs and no new lows; the Nasdaq Composite recorded 151 new highs and 22 new lows. About 6.6 billion shares changed hands on US exchanges, compared with the 6.7 billion daily average for the past 20 trading days, according to Thomson Reuters data. —