Tag Archives: Wall Street

Dow breaches 21,000 as banks gain on rate talk

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., February 28, 2017. REUTERS/Brendan McDermid

(Reuters) – U.S. stocks opened at record intraday highs on Wednesday, with the Dow breaching the 21,000 mark for the first time ever as a more measured tone in President Donald Trump’s speech reassured investors and bank stocks gained on higher chances of an interest rate hike this month.

The Dow Jones Industrial Average <.DJI> was up 184.17 points, or 0.88 percent, at 20,996.41, the S&P 500 <.SPX> was up 18.65 points, or 0.789037 percent, at 2,382.29 and the Nasdaq composite <.IXIC> was up 49.66 points, or 0.85 percent, at 5,875.10.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Sriraj Kalluvila)

Stocks gain on Trump policy bets; S&P breaks $20 trillion

Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York, U.S.,

By Chuck Mikolajczak

NEW YORK (Reuters) – A gauge of global equity stocks and markets advanced on Monday and bond yields rose as investors flocked to assets likely to benefit from reflationary policies that are expected to be implemented by U.S. President Donald Trump.

Financials and banks in particular led equities on Wall Street higher as investors bet Trump’s tax reform plans and softer regulatory environment will boost economic growth and corporate profits.

Comments from Trump on Thursday that he plans to announce what he said would be the most ambitious tax reform plan since the Reagan era in the next few weeks rekindled hopes for big tax cuts while the announced resignation of the Fed’s top bank regulator on Friday heightened expectations for a loosening of rules on banks.

“Investors are willing to say the prospects for growth are higher now than they were, and they’re not just saying it, they’re committing capital,” said Jamie Cox, managing partner of Harris Financial Group in Richmond Virginia.

Investors were also encouraged by a U.S.-Japan summit over the weekend apparently having ended smoothly without Trump talking tough on trade, currency or security issues.

In addition, Trump said on Monday the United States will be “tweaking” its trade relationship with Canada, stopping short of calling for a major realignment in a development likely to please visiting Canadian Prime Minister Justin Trudeau.

The Dow Jones Industrial Average rose 142.79 points, or 0.7 percent, to end at 20,412.16, the S&P 500 gained 12.15 points, or 0.52 percent, to 2,328.25 and the Nasdaq Composite added 29.83 points, or 0.52 percent, to 5,763.96.

The advance put the S&P 500’s market capitalization above the $20 trillion mark for the first time. Apple the largest component of the S&P 500 and a core holding on Wall Street, climbed 0.9 percent to a record $133.29, breaking its prior closing high of $133.00 set on Feb. 23, 2015 and giving it a market value of about $699.3 billion.

MSCI’s all-country world index advanced 0.49 percent to notch its fourth straight advance. Europe’s broad FTSEurofirst 300 index gained 0.76 percent to close at its highest since December 2015.

U.S. Treasury yields rose as investors looked to testimony by Federal Reserve Chair Janet Yellen on Tuesday and Wednesday when she gives her semiannual Humphrey Hawkins testimony before lawmakers in Washington.

Benchmark 10-year notes declined 7/32 in price to yield 2.43 percent, up from 2.41 percent late on Friday.

The dollar was up 0.18 percent against a basket of major currencies, after touching its highest in almost three weeks, on expectations reflationary policies would stoke economic growth and the possibility the Fed could be more aggressive in hiking interest rates.

In commodities, copper hit its highest since May 2015 after shipments from Chile and Indonesia, the world’s two biggest copper mines, were disrupted.

The metal last traded at $6,105.85 per tonne, up 0.26 percent on the day after climbing as high as $6,204. On Friday it jumped more than 4 percent, its biggest one-day rise in almost four years.

Oil prices pulled back from strong gains registered on Friday as the greenback strengthened and signs of rising U.S. crude output pressured prices.

International benchmark Brent crude futures settled down 2 percent at $55.59 per barrel and U.S. crude settled 1.7 percent lower at $52.93.

(Additional reporting by Noel Randewich; Editing by Nick Zieminski and James Dalgleish)

Wall Street opens at record highs as ‘Trump trade’ resumes

Traders work on the floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S.

By Yashaswini Swamynathan

(Reuters) – The main U.S. stock indexes hit record intraday highs on Monday, led by financials and industrials, as the so-called “Trump trade” sparked back to life on renewed optimism about the economy.

The three main indexes closed at record highs on Thursday and Friday rose after President Donald Trump vowed to make a major tax announcement in the next few weeks.

The S&P 500 has surged 8.3 percent since Trump’s Nov. 8 election through Friday’s close, fueled by expectations he will lower corporate taxes, reduce regulations and increase infrastructure spending.

While the rally had stalled amid concerns over Trump’s protectionist stance and lack of clarity on policy reforms, the S&P 500 has not dropped more than 1 percent in 84 trading days, indicating investors were giving Trump the benefit of doubt.

Investors were also comforted by the two-day U.S.-Japan summit held over the weekend apparently having ended smoothly without Trump talking tough on trade, currency and security issues.

The Japanese yen, the demand for which rises when risk appetite falls, was the biggest underperformer among major currencies. World stocks rose, with Asian shares rallying to a 1-1/2-year high.

Global markets are following the leader (U.S. stocks) after the resurgence of the “Trump trade”, Peter Cardillo, chief market economist at First Standard Financial wrote in a note.

At 9:38 a.m. EDT the Dow Jones Industrial Average was up 91.51 points, or 0.45 percent, at 20,360.88.

The S&P 500 was up 7.44 points, or 0.32 percent, at 2,323.54 and the Nasdaq Composite was up 23.61 points, or 0.41 percent, at 5,757.73.

Six of the 11 major S&P sectors were higher, with financials and industrials gaining the most. The two sectors are seen benefiting the most from Trump’s policies.

Telecom stocks were down the most, 1.4 percent, due to a 1.3 percent drop in Verizon after the network carrier said it would reintroduce its unlimited data plan.

Fears of a price war hit other carriers. ATT was down 1.4 percent, T-Mobile dropped 3 percent, Sprint fell 0.4 percent.

Apple was the top stock on the S&P and the Nasdaq, rising 1 percent and closing on its record high after Goldman Sachs raised its price target on the stock.

Zeltiq Aesthetics surged 12.5 percent to $55.60 after Allergan said it would buy the medical device maker for about $2.48 billion. Allergan’s stock was slightly higher.

Chemours rose 14 percent after the company and DuPont said they had agreed to pay about $671 million in cash to settle several lawsuits related to the leak of a toxic chemical. DuPont’s stock was up 0.5 percent.

Advancing issues outnumbered decliners on the NYSE by 1,987 to 691. On the Nasdaq, 1,784 issues rose and 623 fell.

The S&P 500 index showed 44 new 52-week highs and no new lows, while the Nasdaq recorded 94 new highs and six new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D’Souza)

U.S. trade deficit falls as exports hit more than 1-1/2 year high

Freighters and cargo containers ready for trade

By Lucia Mutikani

WASHINGTON (Reuters) – The U.S. trade deficit fell more than expected in December as exports rose to their highest level in more than 1-1/2 years, outpacing an increase in imports.

The Commerce Department said on Tuesday the trade gap dropped 3.2 percent to $44.3 billion, ending two straight months of increases. The trade deficit rose 0.4 percent to a four-year high of $502.3 billion in 2016. That represented 2.7 percent of gross domestic product, down from 2.8 percent in 2015.

The Trump administration is targeting trade in its quest to boost economic growth. President Donald Trump has vowed to make sweeping changes to U.S. trade policy, starting with pulling out of the 12-nation Trans-Pacific Partnership trade pact.

Trump also wants to renegotiate the North American Free Trade Agreement (NAFTA), which was signed in 1994 by the United States, Canada and Mexico. Economists, however, warn that the America-first or protectionist policies being pursued by the administration are a threat the country’s economic health.

Economists polled by Reuters had forecast the trade gap slipping to $45.0 billion in December.

When adjusted for inflation, the deficit decreased to $62.3 billion from $63.9 billion in November. The improvement in the deficit at the end of the year could set up trade to be a modest drag on growth in the first quarter.

U.S. financial markets were little moved by the report as the government published an estimate of the goods deficit last month. Trade slashed 1.7 percentage points from gross domestic product in the fourth quarter, leaving output rising at a 1.9 percent annualized rate. The economy grew at a 3.5 percent pace in the third quarter.

EXPORTS INCREASE BROADLY

In December, exports of goods and services increased 2.7 percent to $190.7 billion, the highest since April 2015, as shipments of advanced technology goods such as aerospace, biotechnology and electronics, hit a record high.

There were increases in exports of industrial supplies and materials, capital goods, consumer goods and motor vehicles.

Still, exports remain constrained by relentless dollar strength. The dollar gained 4.4 percent against the currencies of the United States’ main trading partners last year.

Exports to the European Union jumped 10.1 percent, with goods shipped to Germany surging 12.4 percent.

A Trump trade adviser has accused Germany of unfairly benefiting from a weak euro. Exports to China, another sore point for Trump, fell 4.1 percent.

Imports of goods and services rose 1.5 percent to $235.0

billion in December, the highest level since March 2015. Part of the increase in the import bill reflects higher oil prices, as well as strengthening domestic demand.

The price of imported crude oil averaged $41.45 in December, the highest since September 2015. Food imports hit a record high, as did those of motor vehicles.

Imports of goods from China fell 7.6 percent in December. Germany saw a 1.4 percent increase in merchandise shipped to the United States in December.

With both exports and imports falling, the politically sensitive U.S.-China trade deficit dropped 9.0 percent to $27.8 billion in December. The trade deficit with China decreased $20.1 billion to $347.0 billion in 2016.

The trade gap with Germany declined 6.2 percent to $5.3 billion in December. The trade deficit with Germany narrowed $10.0 billion to $64.9 billion last year.

The United States also saw big declines in its trade deficits with Canada and Mexico in December.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

Rethink on Trump hits dollar and world stocks

electronic board in Japan showing stock prices

By John Geddie

LONDON (Reuters) – The U.S. dollar headed for its worst start to a year in over a decade on Tuesday, while world stocks cemented their biggest losses in six weeks after widespread protests against President Donald Trump’s stringent curbs on travel to the United States.

Investors’ hopes for a fiscal boost to the world’s largest economy under Trump have been tempered by controversial and protectionist policies that have seen him suspend travel to the United States from seven Muslim-majority countries.

Thousands took to the streets of major U.S. cities to oppose the travel ban, which also halts refugee arrivals, while marches in Britain added to pressure on Prime Minister Theresa May to cancel a planned state visit by Trump.

A stream of U.S. policymakers and business executives have also slammed Trump’s stance.

The dollar lost more ground against a basket of six major currencies <.DXY> on Tuesday, on track for a slump of over 2 percent this month – its worst start to the year since 2006.

Against the safe haven yen, the dollar slipped to 113.28 yen <JPY=>, set for a fall of over 3 percent this month.

MSCI’s gauge of the world’s top 46 stock markets <.MIWD00000PUS> failed to recover any ground on Tuesday, after a 0.6 percent slide on Monday which was its largest loss in a month and a half.

Futures showed Wall Street opening around 0.2 percent lower <ESc1>, with the S&P 500 index set to add to its biggest daily fall in a month, seen on Monday.

“His actions over the last few days are another reminder that there were two sides to his campaign and Trump is just as adamant to follow through on those measures that will likely weigh on market sentiment in the coming months,” said Craig Erlam, senior market analyst at OANDA.

Benchmark German government bond yields edged higher as the euro zone posted better-than-expected inflation and growth data, a trend that plays into the hands of a minority of policymakers calling for an end to the European Central Bank’s ultra-easy stance.

European bourses <.STOXX> clawed back some ground after big losses on Monday, buoyed by strong results from the likes of British online supermarket Ocado <OCDO.L>.

MSCI’s broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> fell 0.6 percent while Japan’s Nikkei <.N225> dropped 1.7 percent, its biggest fall in almost three months.

Supported by signs of accelerating momentum in the global economy, most stock markets remained up on the month as a whole. MSCI’s ex-Japan Asian shares index was up 5.8 percent this month while its index of world markets was up 2.7 percent.

For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets

DOLLAR RALLY OVER?

In other currencies, the euro <EUR=> edged up to $1.0756 against the U.S. dollar after Trump’s trade adviser told the Financial Times that Germany was benefiting from a “grossly undervalued” exchange rate. It has bounced back from a 14-year low of $1.0340 set on Jan. 3.

“We sense the strong U.S. dollar policy is over, a thing of the past,” said Mizuho’s head of hedge fund FX sales, Neil Jones. “Recent U.S. concern over a strong U.S. dollar versus China is now feeding into the euro zone with the comment on an undervalued euro.”

The British pound <GBP=D4> fell by almost a full cent after weaker than expected data on consumer credit added to a handful of tentative signs that the UK economy may finally be slowing on the back of last year’s Brexit vote.

Elevated uncertainty about Trump’s policies, including a lack of detail so far on his plans for tax cuts and fiscal spending, is tempering optimism on the U.S. economy. Over half of the global investors polled by Reuters this month said they thought Trump’s stimulus plans would fail to meet existing market expectations.

Data on Monday showed U.S. consumer spending accelerated in December while inflation showed some signs of picking up last month.

The core PCE price index, the Federal Reserve’s preferred inflation measure, rose 1.7 percent on a year-on-year basis after a similar gain in November.

The Federal Reserve, which starts its two-day policy meeting on Tuesday, is widely expected to keep interest rates unchanged as it awaits greater clarity on Trump’s economic policies.

(Additional reporting by Jemima Kelly in London and Hideyuki Sano in Tokyo; Editing by Mark Trevelyan)

Wall St. set to open lower after Trump’s travel curbs

Traders work on the floor of the New York Stock Exchange

By Yashaswini Swamynathan

(Reuters) – U.S. stocks looked set to open lower on Monday, amid uncertainty following President Donald Trump’s orders to curb travel and immigration from certain countries.

Trump on Friday signed executive orders to bar admission of Syrian refugees and suspend travel to the United States from Syria, Iraq, Iran and four other countries on the grounds of national security.

Thousands of people rallied in major U.S. cities and at airports in protest, while several countries including long-standing American allies criticized the measures as discriminatory and divisive.

The promise of tax cuts and simpler regulations had lured investors into equity markets since Trump’s election in November, but some are worried about the potential risk of his protectionist policies.

The pullback in futures suggests that the Dow Jones Industrial Average <.DJI> could fall below the 20,000 mark it hit for the first time ever on Wednesday.

“A new week of trading is getting off on a sour note, as key macro news, Fed action, international and domestic backlash over Trump’s immigration stand are putting investors on the defense,” Peter Cardillo, chief market economist at First Standard Financial, wrote in a note.

“We look for a bumpy to negative ride as the ‘Worry Trade’ rules the day.”

Dow e-minis <1YMc1> were down 70 points, or 0.35 percent, at 8:32 a.m. ET (1332 GMT), with 21,512 contracts changing hands.

S&P 500 e-minis <ESc1> were down 9.25 points, or 0.4 percent, with 128,685 contracts traded.

Nasdaq 100 e-minis <NQc1> were down 21.5 points, or 0.42 percent, on volume of 22,585 contracts.

A report from the U.S. Commerce Department showed consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.5 percent after a 0.2 percent gain in November.

Shares of big technology companies Microsoft <MSFT.O>, Alphabet <GOOGL.O> and Netflix <NFLX.O> were down between 0.60 percent and 0.90 percent in premarket trading on Monday. Apple <AAPL.O> and Facebook <FB.O>, which are scheduled to report results this week, were also lower.

Tempur Sealy <TPX.N> dropped 26 percent to $46.70 after the company said it terminated its contracts with mattress retailer Mattress Firm following disagreements over changes in their contracts.

Data technology company Ixia <XXIA.O> rose 5.8 percent to $19.25 after Keysight Technologies <KEYS.N> said it would buy the company for about $1.6 billion.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Sriraj Kalluvila)

Stocks bask in Dow’s afterglow, dollar perks up

Indonesia stock market

By Marc Jones

LONDON (Reuters) – World stock markets climbed strongly on Thursday, with investors basking in the afterglow of a break past 20,000 points for Wall Street’s record high Dow Jones index.

MSCI’s 46-country All World index &lt;.MIWD00000PUS&gt; was within touching distance of its lifetime high as European stocks [.EU] rose to their highest since Dec. 2015, completing a global loop after Asia’s main bourses also saw a bumper session. [.T]

The “Trump trade”, based on hopes of U.S. stimulus reflating growth, would appear to be back on – egged on by some impressive corporate earnings, higher commodity prices and signs that growth is finally finding some traction worldwide.

The Dow’s record run looked set to continue later [.N] and the curious outlier of recent weeks, the dollar &lt;.DXY&gt;, pushed off seven-week low it had hit after Trump confirmed he was ready to start building his controversial border wall with Mexico. [FRX/]

There were no such wrinkles in bond markets. Ten-year U.S. Treasury yields &lt;US10YT=RR&gt; were back above 2.53 percent to their highest of 2017 so far and the equivalent German &lt;DE10YT=TWEB&gt; and French yields jumped to their highest levels in over a year.

“The reflation trades are being driven by two main things,” said Neil Williams, chief economist at fund manager Hermes.

“Countries more willing to open the fiscal box and we are awaiting Mr Trump’s long-awaited tax cuts in mid-year. And second is the prospect of ultra-loose monetary policy.”

In commodities, crude oil prices also bounced as global sentiment lifted and the dollar weakened, which helps non-U.S. buyers of dollar-denominated raw materials. [O/R]

U.S. crude &lt;CLc1&gt; was up 0.8 percent at $53.18 a barrel after losing the same amount the previous day. Brent added 0.8 percent to $55.53 a barrel &lt;LCOc1&gt;, while cooper hit a two-month high as a strike loomed at the world’s biggest mine in Chile.

DON’T STOP ME DOW

Wall Street traders were already sifting through results from the likes of Ford &lt;F.N&gt;, Caterpillar &lt;CAT.N&gt; and Dow Chemical &lt;DOW.N&gt;. Service sector PMI numbers are also due later to provide the macro temperature of the world’s largest economy.

The Dow Index had been flirting with 20,000 points for weeks so it brought widespread cheer – and cap brandishing – when it broke through. It only topped 19,000 in November and this was the second-shortest time on record to jump 1,000 points.

SEB investment management’s global head of asset allocation Hans Peterson said he was now taking stock following the moves.

“We are neutral on the U.S. (stocks)” he said. “We think it is sort of stretched although not extremely stretched and not as far as it has been, but (U.S. Treasury) yields are going up and the dollar might be closer towards its turing point.”

Europe’s cross-country European STOXX 600 index &lt;.STOXX&gt; was trading 0.3 percent higher by 1300 GMT at its highest since December 2015. Germany’s DAX &lt;.GDAXI&gt; hit its highest since May 2015 and London’s FTSE &lt;.FTSE&gt; was near an all-time record.

Milan &lt;.FTMIB&gt; also showed little sign of nerves after Italy’s constitutional court on Wednesday opened the way for new elections this year, potentially in the summer and one which will be another populist battle.

Asian shares &lt;.MIAPJ0000PUS&gt; had a good day too. Japan’s Nikkei &lt;.N225&gt; brushed aside a stronger yen to rise 1.7 percent, Hong Kong’s Hang Seng &lt;.HSI&gt; climbed 1.3 percent and Shanghai &lt;.SSEC&gt; edged up ahead of a week-long Lunar New Year holiday.

“Today’s excitement mainly comes from strong U.S. stocks overnight, but people are also positive about Japanese companies’ earnings, especially machinery manufacturers,” said Takuya Takahashi, a strategist at Daiwa Securities in Tokyo.

Back in the currency markets, sterling hit a six-week high after solid GDP data before fizzling. The dollar index &lt;.DXY&gt;, which tracks the greenback against six other top currencies, clawed back from its overnight lows to stand flat on the day.

“The problem that the greenback is having right now is two- fold – first Trump has been talking down the currency and second, his policies make foreign investors nervous,” wrote Kathy Lien, managing director of FX strategy for BK Asset Management.

For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets

(Additional reporting by Shinichi Saoshiro in Tokyo; Editing by Gareth Jones)

Dow hits 20,000 as post-election rally roars back to life

Dow trading floor

By Yashaswini Swamynathan, Rodrigo Campos and Chuck Mikolajczak

(Reuters) – The Dow Jones Industrial Average traded above 20,000 for the first time on Wednesday, resuming a rally that began in the wake of U.S. President Donald Trump’s surprise election victory.

The rally roared back to life after Trump signed numerous executive orders on Tuesday, including clearing the path for the construction of two oil pipelines to boost the energy industry.

The S&amp;P 500 and the Nasdaq Composite indexes also hit record intraday highs.

The Dow came within a point of the historic mark on Jan. 6, as investors banked on pro-growth policies and tax cuts many expect from the new administration.

“Trump’s been on the job for five days and he’s a man of action,” said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago.

“That should get everyone confident he’ll get those three other things done … which is taxes, trade and regulation.”

Trump tweeted “Great!#Dow20K”.

The venerable index had stalled recently, dropping modestly in consecutive weeks, as investors grew cautious as they looked for clarity on the administration’s new policies.

If the index remains above 20,000 by closing time, the 42-session surge from the first close above 19,000 would mark the second-shortest length of time between such milestones.

The most rapid rise was between 10,00 and 11,000 from March 29 to May 3, which took 24 days. The rise from 18,000 to 19,000 took the Dow 483 trading sessions.

The surge since Nov. 22, when the index closed above 19,000 for the first time, has been spearheaded by financial stocks – with Goldman Sachs &lt;GS.N&gt; and JPMorgan &lt;JPM.N&gt; accounting for about 20 percent of the gain.

On Wednesday, Boeing &lt;BA.N&gt; rose 2.7 percent after its earnings and IBM &lt;IBM.N&gt; gained 1.4 percent, helping to push the index over the top. Goldman rose 0.7 percent.

At 10:11 a.m. ET (1512 GMT), the Dow &lt;.DJI&gt; was up 137.14 points, or 0.69 percent, at 20,049.85. Only six of its 30 components were lower.

The S&amp;P 500 &lt;.SPX&gt; was up 13.69 points, or 0.60 percent, at 2,293.76 and the Nasdaq Composite &lt;.IXIC&gt; was up 40.53 points, or 0.72 percent, at 5,641.49.

Eight of the 11 major S&amp;P 500 sectors were higher, led by a 1.05 percent rise in financials &lt;.SPSY&gt;.

Utilities &lt;.SPLRCU&gt;, real estate &lt;.SPLRCR&gt; and telecom services &lt;.SPLRCL&gt; – defensive parts of the market – were the outliers.

Advancing issues outnumbered decliners on the NYSE by 1,941 to 824. On the Nasdaq, 1,902 issues rose and 658 fell.

The S&amp;P 500 index showed 71 new 52-week highs and one new low, while the Nasdaq recorded 145 new highs and six new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D’Silva)

Wall St. to open higher as Trump rally reignites

Traders working in New York Stock Exchange

By Yashaswini Swamynathan

(Reuters) – U.S. stocks looked set for a higher open on Wednesday, with the Dow set to take a shot at 20,000, following a raft of strong quarterly earnings and optimism around President Donald Trump’s pro-growth policies.

The Trump rally, which had driven Wall Street to a series of record highs since November, had been sputtering in recent weeks as investors sought clarity on his growth initiatives.

The S&P 500 <.SPX> and the Nasdaq Composite <.IXIC> closed at record levels on Tuesday as the post-election rally roared back to life after Trump signed executive orders to move forward with the construction of two oil pipelines.

He also pushed chief executives of the Big Three U.S. automakers to create jobs by building more plants in the United States. Shares of Ford <F.N>, General Motors <GM.N> and Fiat Chrysler <FCAU.N> rose in premarket trading.

“You are seeing futures continue from yesterday’s euphoria as more money gets put to work,” said Drew Forman, co-head of sales and trading equity at Macro Risk Advisors in New York.

The dollar dropped to a near seven-week low on Wednesday of 99.84 as concerns about Trump’s protectionism stance on trade lingered.

Dow e-minis <1YMc1> were up 77 points, or 0.39 percent at 8:19 a.m. ET (1319 GMT), with 24,697 contracts changing hands.

S&P 500 e-minis <ESc1> were up 8.25 points, or 0.36 percent, with 118,032 contracts traded. The index hit a record high earlier in the day.

Nasdaq 100 e-minis <NQc1> were up 24.75 points, or 0.49 percent, on volume of 24,262 contracts.

A largely positive fourth-quarter earnings season also boosted investor confidence. Of the 79 S&P 500 companies that have reported earnings so far, nearly 70 percent have beaten expectations, according to Thomson Reuters I/B/E/S.

Gains in Boeing <BA.N> could provide the Dow <.DJI> an impetus to breach the 20,000, after coming within 90 points of the milestone a day earlier.

Boeing’s stock was up 1.11 percent premarket after the company said it expected to deliver more commercial aircrafts this year than in 2016.

Seagate <STX.O> shares surged 12.8 percent to $42.30 after the hard-disk drive maker forecast current-quarter revenue above estimates, buoyed by strong demand for its cloud-based storage products.

Aluminum producer Alcoa <AA.N> rose 2.03 percent to $38.26 after reporting a better-than-expected first quarter revenue.

AT&T <T.N> and Qualcomm <QCOM.O> are scheduled to report results after market close.

No key economic data is expected on Wednesday. Federal Reserve officials are in a self-imposed blackout period ahead of a policy-setting meeting next week.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D’Silva)

S&P 500, Nasdaq hit record highs on bank, tech gains

traders working on floor of NYSE

By Chuck Mikolajczak

NEW YORK (Reuters) – The S&P 500 and Nasdaq touched intraday record highs on Tuesday and the Dow was poised for its best day of the year, lifted by gains in financial and technology stocks.

The advance comes as investors assess quarterly earnings reports, while trying to find more clarity on President Donald Trump’s economic policies.

Trump signed two executive orders on Tuesday to move forward with construction of the controversial Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favor of expanding energy infrastructure. He also met with chief executives of the Big Three U.S. automakers to push for more cars to be built in the United States.

“He is demonstrating that he is extremely business friendly, and I thought he had a good day today,” said Stephen Massocca, Chief Investment Officer, Wedbush Equity Management LLC in San Francisco.

“The protectionist stuff will spook the market, the rest of it is spot-on.”

Profits of S&P 500 companies are estimated to have risen 6.7 percent in the latest quarter, marking the strongest growth in two years, according to Thomson Reuters I/B/E/S.

Despite stalling in recent weeks, the post-election rally has contributed to somewhat lofty valuations. The S&P 500 is trading at about 17 times forward 12-month earnings, according to Thomson Reuters Datastream, compared with the 10-year median of 14.2.

The Dow Jones Industrial Average rose 133.5 points, or 0.67 percent, to 19,933.35, the S&P 500 gained 16.27 points, or 0.72 percent, to 2,281.47 and the Nasdaq Composite added 46.03 points, or 0.83 percent, to 5,598.98.

GM shares were up 1.5 percent and Ford rose 2.3 percent, while Fiat Chrysler jumped 6.7 percent. The S&P financial sector climbed 1.5 percent. The index had surged more than 16 percent in the wake of the election to the end of 2016 but has struggled in the new year, losing more than 1 percent through Monday.

Materials jumped nearly 3 percent and were on track for their best day since February. The sector was bolstered by a 5 percent rise in DuPont, which reported a better-than-expected quarterly profit.

IBM, up 2.9 percent, and Intel, up 2.6 percent, were among the top boosts to the S&P 500 and helped lift the tech sector by 1.1 percent to put the sector on track for its best day this year.

Yahoo rose 3.3 percent after the company reported better-than-expected quarterly profit and revenue and said the sale of its core internet business to Verizon should be completed in the second quarter.

Advancing issues outnumbered declining ones on the NYSE by a 2.95-to-1 ratio; on Nasdaq, a 2.47-to-1 ratio favored advancers.

The S&P 500 posted 42 new 52-week highs and two new lows; the Nasdaq Composite recorded 107 new highs and 28 new lows.

(Reporting by Chuck Mikolajczak; Editing by James Dalgleish)