Friday, 10 February 2017
Wall Street to extend gains; Consumer confidence eyed
US stock indexes ended higher on Thursday following President Donald Trump’s promise to make an announcement on taxes in the upcoming weeks.
"Lowering the overall tax burden on American business is big league [...] We're way ahead of schedule, I believe. And we're going to announce something I would say over the next two or three weeks that will be phenomenal in terms of tax," said Trump during a meeting with US airline executives.
Wall Street three major indexes surged over speculation of tax cuts for individuals and corporations. The Dow Jones industrial average jumped nearly 100 points, pushed by Goldman Sachs recovery from Wednesday’s fall. The Nasdaq composite refreshed its all-time high, adding about 0.5 percent during the session. The S&P 500 was again supported by financial components, reaching new all-time highs.
- Dow Jones Industrial Average: +0.59 percent / 20,172.40 points
- Standard & Poor’s 500: +0.58 percent / 2,307.87 points
- Nasdaq Composite: +0.58 percent / 5,713 points
While equities are ended showing progress, they remain inside a tight trading range as market players continue to search for hints on Trump’s economic reforms.
Analysts believe stocks are likely to keep inside the range for quite some time, especially as there are no proves so far of how Trump’s policies are affecting the economy.
On the data front, weekly jobless claims came in at 234,000, dropping 12,000 from last week. Economists had forecasted a build up to 250,000 applications. In December, wholesale inventories rose by 1 percent.
Saint Louis Fed President James Bullard said US benchmark rates are expected to remain low in 2017, as it’s not clear whether Trump’s new policies will promote higher economic growth.
Later today, Export and Import Price Indexes for January will be released at 13:30 GMT, followed by Michigan’s Consumer Expectations and Sentiment for February at 15:00 GMT. Analysts are pointing at 89.0 and 97.9 points respectively. Commodity traders will keep an eye on Baker Hughes’ oil rig count, which is due at 17:00 GMT.