Trump trade hits first big test
The Trump trade had its first major test as investors sold down stocks at the fastest rate since before the election Wednesday. It may not have broken the Standard & Poor’s 500stock index’s momentum, but it made a dent.
Investors navigated a swarm of headlines from the White House. The biggest revelation, reports that President Trump asked FBI Director James B. Comey to drop the bureau’s inquiry into ties between the administration and Russia, sent markets reeling as the S&P 500 posted its worst day since September.
Yet stocks were quick to rebound with back-to-back advances that brought the weekly move in the benchmark gauge to just a 0.4 percent dip. The Dow Jones industrial average also declined, erasing 92 points to end the five days at 20,804.84.
Industry groups that were the hallmark of the Trump bump were among the hardest hit, with financial shares the worst-performing sector, dropping 1 percent for the week. Industrial stocks lost 0.2 percent.
The U.S. treasury will sell $39 billion of three-month bills and $33 billion in sixmonth bills Monday. They yielded 0.93 percent and 1.03 percent in when-issued trading. It will also sell $20 billion 52-week bills, four-week bills and $26 billion in two-year notes Tuesday. On Wednesday, it will sell $13 billion in two-year floating rate notes, $34 billion in five-year notes, and Thursday will sell $28 billion in seven-year notes.
Editor’s note: Going forward, our weekly composite stock listing highlights companies based in Washington or with a strong presence here. The rest of the table shows firms as ranked by market capitalization. And we’ve added year-to-date data because readers told us it would be useful.