U.S. stocks rose Friday morning as Wall Street closely awaited Donald Trump’s inauguration as the nation’s 45th president.
His address will be closely watched, with traders hoping to glean some insight into what his legislative priorities will be, especially as it pertains to economic policy. The swearing-in ceremony is slated to begin at 11:30 a.m. Eastern Time
A round of upbeat corporate earnings gave support to the idea that equity valuations may be supported by economic fundamentals.
The Dow Jones Industrial Average
rose 95 points, or 0.5%, to 19,826, while the SP 500 index
climbed 11 points, or 0.5%, to 2,275 and the Nasdaq Composite
added 28 points, or 0.6%, to 5,571.
The day’s gains were broad, with only one of the SP 500’s primary 11 sectors down on the day. The biggest gainers were telecom, up 1.3%, and energy, up 0.8%.
Stocks rallied in the wake of Trump’s upset election win, with indexes hitting a series of records as investors bet that he would pursue massive corporate tax cuts, deregulation, and infrastructure spending, all of which are expected to accelerate economic growth and stoke inflation. However, the gains have stalled of late as market participants look for proof that the rise will justified by policy actions.
For the week, the Dow is down 0.4% and the Nasdaq is off 0.1%. The SP 500 is flat on the week.
“A lot of people have a lot of hope that Trump represents a new start, but the market has shown signs of a waning ability to push higher solely based on hope. We need to see how much of the hope translates to meaningful action,” said Bruce McCain, chief investment strategist at Key Private Bank. “However, earnings have been strong, and that should be the most meaningful indicator for markets over the next few months” until there is more policy clarity.
Check out: Why the stock bulls will keep trampling over your Trump fears
And see: SP 500’s biggest winners and losers during the Obama era
Read: How stocks perform in a new president’s first 100 days
And see: Trump inauguration sparks anxiety among some investors
Bill de Blasio, Robert De Niro lead protest against Trump’s inauguration
More than a thousand demonstrators joined New York Mayor Bill de Blasio and a number of celebrities in front of the Trump International Hotel and Tower, protesting Donald Trump’s imminent inauguration.
Stock movers: Shares in IBM
rose 0.8% a day after the tech giant posted better-than-expected earnings.
See: IBM at least has improved at predicting its revenue declines
American Express Co.’s stock
fell 1% after the credit card company’s quarterly earnings missed forecasts, though its revenue beat estimates.
Procter Gamble Co.
rose about 2.5% after it reported a drop in sales that was smaller than expected.
General Electric Co.
dropped 1.6% after the conglomerate’s quarterly revenue drop was larger than expected, while Procter Gamble Co.
rose 2% after better-than-anticipated earnings. IBM, AmEx, PG, and GE are all Dow components.
Bristol-Myers Squibb Co.
tumbled 9.7% after the pharmaceutical company said it wouldn’t pursue accelerated approval for a lung cancer combination treatment.
Skyworks Solutions Inc.
climbed 13% after the chip supplier to Apple Inc.
posted better-than-expected quarterly results, while also unveiling a $500 million stock-repurchase program.
Other markets: Oil futures
traded 2.3% higher, while European stocks
were little changed. Chinese stocks gained on stronger-than-expected economic growth to end 2016, but Asian shares overall logged modest declines. Gold futures
were roughly flat, and a key dollar index
Economic news: On Thursday, Federal Reserve chief Janet Yellen indicated she wasn’t worried about the surge in inflation and signaled she saw no reason to rapidly raise interest rates.
There are no releases of top-tier U.S. economic data expected.
Check out: MarketWatch’s Economic Calendar