Stocks gain before Trump speech
Wall Street notched another set of milestones Monday as the Dow Jones industrial average closed at a record high for the 12th consecutive time, the longest winning streak for the 30company average in 30 years.
The Standard & Poor’s 500 index, the benchmark favored by professional investors, also closed at a record high.
The latest push into the record books came on an indecisive day for U.S. stocks that sent indexes wavering between small gains and losses for much of the day. They ultimately eked out tiny gains, led by energy stocks, which climbed as the price of crude oil rose.
Many investors were taking a wait-and-see approach ahead of President Trump’s speech to Congress on Tuesday, hoping for details of promised tax cuts, infrastructure spending and other business-friendly policies.
“It’s all about policy now,” said Phil Blancato, chief executive of Ladenburg Thalmann Asset Management. “There’s only so much the market can deliver when there’s still these many unknowns, specifically the Washington impact is now as much a head wind as it is a tail wind.”
The Dow Jones industrial average rose 15.68 points, or 0.1%, to 20,837.44. The S&P 500 gained 2.39 points, or 0.1%, to 2,369.73. The Nasdaq composite index added 16.59 points, or 0.3%, to 5,861.90. Small-company stocks fared better than the other indexes, sending the Russell 2000 index up 13.44 points, or 1%, to 1,407.97.
During a meeting with governors Monday, Trump said his upcoming budget would include a big boost to defense spending. The White House separately said the budget would include a $54-billion increase in defense spending while imposing cuts to domestic programs and foreign aid.
Talk of more defense spending gave a lift to defense contractors Monday. Raytheon added $1.35, or 0.9%, to $154.83. Northrop Grumman gained $3.55, or 1.4%, to $248.60. Lockheed Martin climbed $5.18, or 2%, to $269.36.
Expectations that the Trump administration will ramp up infrastructure spending projects also gave materials companies a boost. Martin Marietta Materials rose $5.21, or 2.5%, to $215.26, while Vulcan Materials added $2.78, or 2.4%, to $120.60. Summit Materials gained 50 cents, or 2.1%, to $24.25.
Traders also weighed the latest crop of company earnings and outlooks. Tegna climbed 3.5% after the media company’s latest earnings beat Wall Street’s estimates. The stock rose 86 cents to $25.66.
Consumer stocks were among the biggest decliners as shares in several supermarket operators fell. Kroger slid $1.07, or 3.2%, to $32.22, while Whole Foods Market fell 46 cents, or 1.5%, at $31.10.
Benchmark U.S. crude rose 6 cents to close at $54.05 a barrel in New York. Brent crude, used to price international oils, slipped 6 cents to close at $55.93 in London.
Bond prices fell. The 10year Treasury yield rose to 2.37% from 2.32% late Friday.
The dollar rose to 112.80 yen from Friday’s 111.98 yen. The euro rose to $1.0589 from $1.0565.