Trump trade hits first big test

The Washington Post Sunday - - MARKETS -

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.

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