Markets

Midday Update: Pro-Growth Tax Cuts Continue to Fuel Rally; Indices Set New Record Highs

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Led by gains in the financial and industrial sectors, the major benchmark indices set new record highs for the third consecutive day Monday as investors' appetite for risk was fueled by expectations for pro-growth tax and regulatory policies by the Trump administration, andd this weekend's amicable meeting between President Trump and Japanese prime minister Shinzo Abe.

Twenty-five of the thirty Dow component stocks were in the green, giving the blue-chip index a triple-digit gain in midday trade.

The catalyst for the recent three-day rally was Trump's announcement last week to unveil a tax plan that would be favorable to U.S. businesses, as well as a pledge to reverse many "burdensome" regulations on the airline industry. Hopeful that tax cuts coupled with de-regulation will fuel increased economic growth, investors have been driving up the price of copper by 6.2% over the last two days to its highest level in nearly two years.

Overseas markets were capitalizing on Wall Street's optimism by extending last week's gains across Asia and Europe despite lingering worries about France's political landscape. The CAC-40 rallied 1.24%, outpacing solid gains in Germany's DAX and the Euro-Stoxx market indices. The UK's FTSE-100 closed at its highest level in four weeks as mining stocks led the advance.

Crude oil was down $0.89 to $52.97 per barrel. Natural gas was down $0.07 to $2.97 per 1 million BTU. Gold was down $11.10 to $1,224.70 an ounce, while silver was down $0.12 to $17.81 an ounce. Copper was up $0.02 to $2.78 per pound.

Among energy ETFs, the United States Oil Fund was down 1.47% to $11.33 with the United States Natural Gas Fund was down 2.37% to $7.42. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was down 1.46% to 24.93 while SPDR Gold Shares were down 0.90% to $116.56. The iShares Silver Trust was down 0.76% to $16.89.

Here's where the markets stand at mid-day:

US MARKETS

NYSE Composite Index was up 45.89 points (+0.40%) to 11,423.61

Dow Jones Industrial Index was up 114.09 points (+0.56%) to 20,382.36

S&P 500 was up 8.75 points (+0.42%) to 2,325.85

Nasdaq Composite Index was up 27.87 points (+0.49%) to 5,761.99

GLOBAL SENTIMENT

FTSE 100 was up 20.17 points (+0.28%) to 7,278.92

DAX was up 107.46 points (+0.92%) to 11,774.43

CAC 40 was up 59.87 points (+1.24%) to 4,888.19

Nikkei 225 was up 80.22 points (+0.41%) to 19,459.15

Hang Seng Index was up 136.00 points (+0.58%) to 23,710.98

Shanghai China Composite Index was up 20.14 points (+0.63%) to 3,216.84

NYSE SECTOR INDICES

NYSE Energy Sector Index was down 30.31 points (-0.27%) to 11,168.69

NYSE Financial Sector Index was up 53.94 points (+0.75%) to 7,253.88

NYSE Healthcare Sector Index was up 52.61 points (+0.42%) to 12,367.27

UPSIDE MOVERS

(+) ZSAN (+104.37%) Migraine treatment achieves co-primary endpoints

(+) SINO (+79.04%) Swings to a profit, Q2 revenue up 33%

(-) STNG (+11.45%) Reports narrower-than-expected loss on below consensus revenue, cuts quarterly dividend

DOWNSIDE MOVERS

(-) SGNL (-20.00%) All Miragen merger-related proposals were approved by shareholders on Friday

(-) KNL (-13.71%) Q4 revenue fell short of expectations

(-) HAIN (-9.32%) Received an SEC subpoena seeking documents relating to a delayed filing

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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