Markets

Stock Market News for February 13, 2017

Benchmarks scaled fresh highs on Friday and registered their third successive weekly gains on President Trump's promise to unveil a new tax plan. Trump's plans to revive a 'phenomenal' tax cut plan invigorated hopes of a pro-growth agenda backseat amid controversial immigration ban and protectionist trade policies. A substantial increase in oil prices , following reports that OPEC members were sticking to output cuts, boosted energy shares.

For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) increased 0.5%, to close at 20,269.37. The S&P 500 rose 0.4% to close at 2,316.10. The tech-laden Nasdaq Composite Index closed at 5,734.13, gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) increased 4.5% to settle at 11.37. A total of around 6.6 billion shares were traded Friday, marginally lower than the last 20-session average of 6.7 billion. Advancers outpaced declining stocks on the NYSE by a wide margin. For 69% stocks that declined, 27% advanced.

What Boosted The Benchmarks?

President Trump is planning to send Congress an outline for a comprehensive tax plan to overhaul the tax codes for business and individuals in the next two or three weeks. In a meeting with members of the airline industry at the White House on Feb 9, Trump said that his goal for lowering taxes, especially for business was moving "ahead of schedule".

Later, press secretary Sean Spicer reiterated that there will be an outline of a plan "that will address both the business side of the tax ledger as well as the individual rates", while the president's tax overhaul would be "something that's going to spur economic growth".

As a result of these announcements, the S&P 500 logged its fourth consecutive session of gains, closing at a record level for the second straight occasion. In fact, all the four major U.S. stock indexes including the Dow, the S&P 500, the Nasdaq and the Russell 2000 registered record closing highs, marking the first 'grand slam' in two months. The Dow climbed on the back of gains made by Caterpillar Inc. ( CAT ) and Nike, Inc. ( NKE ) which increased by 2.5% and 1.7%, respectively.

Meanwhile, oil stocks notched up significant gains after the International Energy Agency said that OPEC members have reduced production by 90% of the volumes agreed earlier. As a result U.S. crude futures for March delivery increased 1.6% to $53.86 per barrel.

Increase in oil prices led the Energy Select Sector SPDR (XLE) 0.8% higher to emerge as one of the leading gainers among the S&P 500's sectors. Sector heavyweights and Dow components Chevron Corp ( CVX ) and Exxon Mobil ( XOM ) increased 0.7% and 0.8%, respectively. Both the companies possess a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Materials and industrials were the leading gainers of the day with the Materials Select Sector SPDR (XLB) and the Industrial Select Sector SPDR (XLI) gaining 0.9% and 0.8%, respectively.

Weekly Roundup

For the week, the Dow, S&P 500 and Nasdaq gained 1%, 0.8% and 1.2%, respectively. President Trump's policies on immigration had a negative impact on certain occasions. However, encouraging earnings results and a rally in oil prices following favorable data helped stocks gain substantially. Trump's pledge to launch a new tax plan boosted indexes over the last two sessions, since such an announcement could have a major impact on earnings results.

Stocks That Made Headlines

JetBlue Airways' January Traffic and Load Factor Increase

The Long Island City, NY-based carrier, JetBlue Airways Corporation ( JBLU ) posted a significant rise in air traffic for the month of Jan 2017. ( Read More )

Skechers Q4 Earnings Miss, Stock Up on Solid Sales

Skechers USA Inc. ( SKX ) continued with its trend of dismal earnings performance reporting its third consecutive miss in fourth-quarter 2016. ( Read More )

j2 Global Q4 Earnings and Revenues Beat Estimates

j2 Global, Inc.'s ( JCOM ) fourth-quarter 2016 adjusted earnings per beat the Zacks Consensus Estimate by 13 cents. ( Read More )

Western Union Beats on Q4 Earnings, Hikes Dividend

The Western Union Company ( WU ) reported fourth-quarter 2017 adjusted earnings per share (EPS) beating the Zacks Consensus Estimate. ( Read More )

News Corp Q2 Earnings Top; Soft Ad Market Hurt Sales

News Corporation ( NWSA ) reported profit in second-quarter fiscal 2017 after posting loss in the previous quarter. ( Read More )

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Exxon Mobil Corporation (XOM): Free Stock Analysis Report

Chevron Corporation (CVX): Free Stock Analysis Report

Caterpillar, Inc. (CAT): Free Stock Analysis Report

Nike, Inc. (NKE): Free Stock Analysis Report

JetBlue Airways Corporation (JBLU): Free Stock Analysis Report

Skechers U.S.A., Inc. (SKX): Free Stock Analysis Report

j2 Global, Inc. (JCOM): Free Stock Analysis Report

Western Union Company (The) (WU): Free Stock Analysis Report

News Corporation (NWSA): Free Stock Analysis Report

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


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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