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Midday Update: Wall Street Sets New Records As Trump Pledges "Phenomenal" Tax Plan

The benchmark averages set new record highs on Friday as investor's appetite for risk was rekindled by President Donald Trump's plan to unveil a pro-growth tax plan. Energy shares were leading advancers with oil futures nearly 2% higher followed by strong gains in the industrial and materials sector.

The Dow, S&P 500 and Nasdaq are all expected to close the week higher with the S&P and Nasdaq up for a third consecutive week.

After meeting with airline executives Thursday, Trump triggered a stock market rally with a pledge to disclose a "phenomenal" plan to lower taxes for U.S. businesses, and roll back "burdensome" regulations on the airline industry. Gains spilled into overseas markets where strength in Asian bourses was amplified by a larger-than-expected Chinese trade surplus.

Economic data was uneventful and failed to put a dent in the uptrade despite an unexpected decline in consumer sentiment. The University of Michigan preliminary sentiment index for February fell back to 95.7 from 98.5 in January.

Also, import prices were up 0.4% in January, above the +0.2% estimates, while export prices were up 0.1%, in-line with expectations.

European markets were higher with mining stocks leading advancers as a result of upbeat Chinese trade data. The expectation for increased production drove the price of cooper up by more than 4% to a 2-year high. Shares of UK miner Rio Tinto ( RIO ) and Luxembourg's Arcelor Mittal ( MT ) both rallied to their highest levels in two-years.

Crude oil was up $1.08 to $54.08 per barrel. Natural gas was down $0.10 to $3.05 per 1 million BTU. Gold was down $1.10 to $1,235.70 an ounce, while silver was up $0.21 to $17.96 an ounce. Copper was up $0.11 to $2.77 per pound.

Among energy ETFs, the United States Oil Fund was up 1.89% to $11.56 with the United States Natural Gas Fund was down 2.37% to $7.62. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was up 1.47% to 25.27 while SPDR Gold Shares were up 0.18% to $117.51. The iShares Silver Trust was up 1.61% to $17.02.

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

US MARKETS

NYSE Composite Index was up 39.07 points (+0.35%) to 11,367.07

Dow Jones Industrial Index was up 76.02 points (+0.38%) to 20,248.60

S&P 500 was up 6.83 points (+0.30%) to 2,314.77

Nasdaq Composite Index was up 14.60 points (+0.26%) to 5,729.78

GLOBAL SENTIMENT

FTSE 100 was up 29.25 points (+0.41%) to 7,258.75

DAX was up 24.11 points (+0.21%) to 11,666.97

CAC 40 was up 2.08 points (+0.04%) to 4,828.32

Nikkei 225 was up 471.26 points (+2.49%) to 19,378.93

Hang Seng Index was up 49.84 points (+0.21%) to 23,574.98

Shanghai China Composite Index was up 13.52 points (+0.42%) to 3,196.70

NYSE SECTOR INDICES

NYSE Energy Sector Index was up 119.34 points (+1.07%) to 11,226.93

NYSE Financial Sector Index was up 4.94 points (+0.07%) to 7,186.99

NYSE Healthcare Sector Index was up 29.15 points (+0.24%) to 12,327.10

UPSIDE MOVERS

(+) SHLD (+29.78%) Issued a strong revenue forecast, announced plans to cut debt and pension obligations by $1.5 billion

(+) INFN (+26.81%) Q4 results beat Wall Street expectations

(+) CTRL (+19.71%) Beats Q4 estimates, guides FY17 above street expectations

(+) BIOL (+5.92%) FDA gives approval to distribute 5th generation waterlase express laser system

DOWNSIDE MOVERS

(-) TCON (-21.65%) The combination of TRC 105 and Avastin did not improve median PFS vs Avastin alone

(-) ONVO (-14.85%) Reported a narrower than expected loss on below consensus sales. Issued weak sales guidance for FY17

(-) YELP (-13.76%) Earnings beat expectations but issued weak FY17 revenue guidance

(-) IPCI (-7.70%) Reported wider-than-expected FY16 loss, revenue falls more than Wall Street estimates

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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