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Close Update: S&P 500 and Nasdaq Set Record Highs as Executive Orders Boost Material, Industrial Stocks

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Driven higher by shares in the industrial and materials sector after President Donald Trump signed executive orders aimed at boosting infrastructure spending, the Dow closed with a triple-digit gain and back within striking distance of 20,000, while the S&P 500 and Nasdaq set new record highs.

Trump signed executive orders advancing construction of both the Keystone and Dakota Access pipelines along with measures intended to streamline the regulatory process for high-priority infrastructure projects. Engineering, construction and material stocks rallied, while financial stocks were driven higher by higher Treasury yields and expectations for the Fed to raise rates in the face of increased fiscal spending.

Trump also met with the CEOs from Ford ( F ), General Motors ( GM ) and Chrysler Fiat ( FCAU ) boosting most shares in the sector amid assurances that the three major automakers will try to keep manufacturing jobs in the U.S.

Stocks were also underpinned by solid quarterly results from Dow component DuPont ( DD ) as well as Alibaba ( BABA ) and Yahoo (YHOO) which helped offset misses reported by Johnson and Johnson (JNJ) and Verizon (VZ).

Economic data was also supportive, though eclipsed by events in Washington. Both the Richmond Fed and purchasing manager's manufacturing indices beat expectations, offsetting a greater-than-expected decline in existing home sales in December.

Here's where the markets stood at the close:

US MARKETS

Dow Jones Industrial Index was up 112.86 points (+0.57%)

S&P 500 was up 14.87 points (+0.66%)

Nasdaq Composite Index was up 48.01 points (+0.86%)

GLOBAL SENTIMENT

FTSE 100 was down 0.01%

Nikkei 225 was down 0.55%

Hang Seng Index was up 0.22%

Shanghai China Composite Index was up 0.18%

UPSIDE MOVERS

(+) MPSX (+23.63%) Agrees to $18 per share buyout by WestRock (WRK)

(+) CLRB (+12.32%) Granted U.S. patent for cancer treatment

(+) NAK (+12.16%) Expects to resolve a dispute with the U.S. EPA to move ahead with development of copper and gold mine

(+) RMD (+9.62%) Reported better-than-expected fiscal Q2 earnings and revenue

DOWNSIDE MOVERS

(-) BT (-20.67%) Raised write-down related to accounting practices in Italy to $663 million vs $181 million previously

(-) BIOA (-16.54%) Increases size of share offering to 3.7 million from 2.1 million shares

(-) OCUL (-9.01%) Priced 3.5 million offering at 7% discount

(-) GLOP (-6.58%) Prices unit offering at $20.50 per unit

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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