By Sue Chang and Anora Mahmudova, MarketWatch
Nasdaq on track for record close
The stock market rallied Thursday, with the Nasdaq poised for a
record finish as investors welcomed a deluge of
stronger-than-expected corporate earnings reports and economic
data.
Comments from Treasury Secretary Steven Mnuchin that President
Donald Trump's tax reform is not linked to the outcome of the
healthcare bill also bolstered sentiment, analysts said.
The S&P 500 climbed 19 points, or 0.8%, to 2,357. Financials
and materials topped the gainers.
The Dow industrials gained 192 points, or 0.9%, to 20,599,
recovering its losses form the previous session. American Express
Co.(AXP) was the best performer among blue-chips, jumping 6%
following earnings.
The Nasdaq Composite rose 58 points, or 1%, to 5,921, above the
record close of 5,914.34 on March 30.
"There is a lot of good news when it comes to earnings and
economic data and not only in the U.S. but overseas as well," said
Karyn Cavanaugh, senior market strategist at Voya Financial.
Mnuchin, speaking at an Institute of International Finance
conference, said a Trump tax bill is likely to be unveiled in the
near future
(http://www.marketwatch.com/story/fate-of-trump-tax-plan-not-tied-to-obamacare-repeal-mnuchin-says-2017-04-20),
alleviating fears that the tax cuts promised by the president may
have been put on the back burner after the Republicans failed to
vote on the American Health Care Act last month.
"[His] comments today were icing on the cake and are giving
investors confidence that the long term economic backdrop will be
getting better," said Cavanaugh.
Reports earlier of a potential breakthrough
(http://www.cnn.com/2017/04/20/politics/health-care-congress-republicans/?link=mktw)
among key House Republicans to secure more support for their
healthcare bill had also contributed to market's upside momentum
given Trump had previously prioritized repealing and replacing
Obamacare over other policy changes.
"The market got a little aggressive on the news given the domino
effect that the healthcare bill would have," said Mark Kepner,
managing director of sales and trading at Themis Trading.
Economic front: "The trend of the market is down and is not
likely to reverse until clarity of the underlying fear factors are
put to rest," said Peter Cardillo, chief market economist for First
Standard Financial, in a note, referencing investor jitters over
the impending French election, and tensions on the Korean
Peninsula.
Initial jobless claims rose by 10,000 to a still-low 244,000 in
mid-April. Meanwhile, the number of out-of-work people collecting
unemployment checks fell to a 17-year low
(http://www.marketwatch.com/story/number-of-people-collecting-unemployment-checks-hits-17-year-low-jobless-claims-show-2017-04-20)
last week, underscoring the strongest U.S. labor market in
years.
The manufacturing index from the Philadelphia Fed slid in April
(http://www.marketwatch.com/story/philadelphia-fed-factory-gauge-slides-again-from-33-year-high-but-remains-elevated-2017-04-20),
but from high levels, suggesting slower growth in the factory
sector after a postelection surge.
Federal Reserve Governor Jerome Powell, speaking about capital
markets and the economy, said now was a good time to review the
raft of banking regulations put in place since the financial
crisis.
Stocks to watch: Shares of Philip Morris International Inc.(PM)
fell more than 3% after the company fell short of earnings and
first-quarter profit expectations
(http://www.marketwatch.com/story/philip-morris-shares-slump-after-earnings-miss-2017-04-20).
Foot Locker Inc.(FL) shares initially fell but rebounded to
trade 5.4% higher even after the athletic apparel group issued a
profit warning.
(http://www.marketwatch.com/story/foot-locker-shares-slide-after-profit-warning-2017-04-20)
(http://www.marketwatch.com/story/foot-locker-shares-slide-after-profit-warning-2017-04-20)Verizon
Communications Inc.(VZ) shares fell 1.1% after the telecom company
reported first-quarter earnings that missed Wall Street
expectations.
EBay Inc.(EBAY) shares dropped 3.6% after earnings.
Qualcomm Inc.(QCOM) shares rose 0.3% after the chip designer
beat earnings expectations
(http://www.marketwatch.com/story/qualcomm-gains-after-beating-earnings-expectations-despite-apple-legal-beef-2017-04-19).
(http://www.marketwatch.com/story/qualcomm-gains-after-beating-earnings-expectations-despite-apple-legal-beef-2017-04-19)United
States Steel Corp.(X) shares soared 8.5% on reports that President
Trump has ordered a probe into whether foreign steel products are
hurting national security.
(http://www.marketwatch.com/story/qualcomm-gains-after-beating-earnings-expectations-despite-apple-legal-beef-2017-04-19)Visa
Inc.(V) and Mattel Inc.(MAT) are due to report after the close.
Other markets: The Nikkei 225 Index rose for a fourth straight
session, leading a recovery for Asia markets
(http://www.marketwatch.com/story/nikkei-up-for-4th-straight-session-leading-asian-market-recovery-2017-04-19).
European stocks were higher, while the U.K.'s FTSE 100 index
(http://www.marketwatch.com/story/unilever-shares-push-ftse-toward-first-win-in-5-days-2017-04-20)
finished in the red.
However, the French CAC 40 index rallied more than 1%
(http://www.marketwatch.com/story/french-stocks-rise-ahead-of-european-peers-despite-election-worries-2017-04-20)
after a Harris Interactive poll signaled a win for centrist
Emmanuel Macron in Sunday's first-round presidential election.
Read:Here's how France's hotly contested election could spark
market turmoil
(http://www.marketwatch.com/story/heres-how-frances-hotly-contested-election-could-spark-market-turmoil-2017-04-19)
West Texas Intermediate crude futures for May extended losses.
Futures suffered their largest decline in weeks
(http://www.marketwatch.com/story/oil-steadies-as-investors-await-eia-inventory-report-2017-04-19)
on Wednesday after a surprise climb in U.S. gasoline supplies.
Gold prices and the U.S. Dollar Index were both little
changed.
--Barbara Kollmeyer contributed to this report.
(END) Dow Jones Newswires
April 20, 2017 15:33 ET (19:33 GMT)
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