Stock Market News for January 23, 2017

On Friday, Donald Trump was sworn in as the new U.S. President and gave a protectionist speech, which in turn had a broad-based positive impact on U.S. benchmarks. In his speech, Trump focused on America's prosperity and strength and pledged to make "America great again." All three key indexes rallied with the Dow snapping a five-session losing stretch. However, the major indexes registered weekly losses as investors looked for more clarity on Trump's economic policies.

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 19,827.25. The S&P 500 rose 0.3% to close at 2,271.31. The tech-laden Nasdaq Composite Index closed at 5,555.33, also gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) significantly declined 9.7% to settle at 11.54. A total of around 6.6 billion shares were traded on Friday, higher than the last 20-session average of 6.1 billion shares. Advancers outpaced declining stocks on the NYSE. For 61% stocks that advanced, 34% declined.

What Boosted the Benchmarks?

After being sworn in as the 45th President of America, Donald Trump gave a protectionist speech. In his speech Trump said "the citizens of America, are now joined in a great national effort to rebuild" the country and will "restore its promise for all" of its people. He also stressed on improving infrastructure and industry and bringing back jobs and wealth. ( Read More )

Trumps' speech boosted investor sentiment and boosted all the three key indexes into positive territory. Most of the major S&P 500 sectors ended in the green on Friday. The Materials Select Sector SPDR (XLB) rose 0.9% and was the biggest advancer among the S&P 500 sectors. Some of its key holdings including, Dow Chemical Company ( DOW ), Praxair, Inc. ( PX ) and LyondellBasell Industries N.V. ( LYB ) increased 0.5%, 1.1% and 1.3%, respectively.

Additionally, Procter & Gamble Company's ( PG ) shares climbed 3.3% after its fiscal second-quarter earnings and revenues exceeded expectations. The bottom line also increased by 3.8% year-over-year. ( Read More )

Gains in Procter & Gamble led the Consumer Staples Select Sector SPDR (XLP) to advance 0.7% and was second best performing sector in the S&P 500. Key components from this sector including Coca-Cola Company ( KO ) and Philip Morris International Inc. ( PM ) soared 0.4% and 0.8%, respectively. While, Coca-Cola possess a Zacks Rank #4 (Sell), Philip Morris International have a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

However, shares of Bristol-Myers Squibb Company ( BMY ) slumped 11.3% after the company disclosed that it will not seek accelerated approval in the U.S. for a combination of its two immuno-oncology treatments. ( Read More )

Decline in Bristol-Myers Squibb weighed on the Health Care Select Sector SPDR (XLV), which fell 0.3% and was the only decliner among the S&P 500 sectors. One of its major components Gilead Sciences Inc. ( GILD ) fell 0.8%.

Weekly Roundup

For the week, both the Dow and Nasdaq declined 0.3% and the S&P 500 fell 0.2%. Benchmarks fell for the week as investors looked for clues on ways Trump could boost the economy. Also, comments from the President-elect weighed on the U.S. dollar, which eventually dragged markets down over the week. Also, U.K. Prime Minister Theresa May's speech regarding Brexit and ECB's decision to keep key rates unchanged pulled benchmarks southward.

Stocks That Made Headlines

Qualcomm Faces $1B Patent Royalty Suit from Apple

Qualcomm Inc. ( QCOM ) has recently been pressed with a $1 billion lawsuit related to licensing royalty payments by tech giant Apple Inc. ( AAPL ). ( Read More )

AIG Enters Into Reinsurance Deal to Restore Profitability

American International Group, Inc. ( AIG ) has entered into a reinsurance agreement with National Indemnity Co. (NICO), a subsidiary of Berkshire Hathaway Inc. ( BRK.B ). ( Read More )

Kansas City Southern Q4 Earnings Miss, Decline Y/Y

Kansas City Southern ( KSU ) performed disappointingly in the fourth quarter of 2016, reporting lower-than-expected earnings per share and revenues. ( Read More )

GATX Corp's Q4 Earnings & Sales Top; Shares Gain

GATX Corporation ( GATX ) reported better-than-expected earnings per share and revenues in the fourth quarter of 2016. ( Read More )

Check Point Stock Up on Q4 Earnings & Sales Beat

Shares of Check Point Software Technologies Ltd. ( CHKP ) were up 7.5% yesterday following the company's announcement of impressive fourth-quarter 2016 results. ( Read More )

Zacks' Top 10 Stocks for 2017

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Dow Chemical Co. (DOW): Free Stock Analysis Report

Praxair Inc. (PX): Free Stock Analysis Report

LyondellBasell Industries (LYB): Free Stock Analysis Report

Philip Morris International Inc. (PM): Free Stock Analysis Report

Procter & Gamble Co. (PG): Free Stock Analysis Report

Coca-Cola Co. (KO): Free Stock Analysis Report

Bristol-Myers Squibb Co. (BMY): Free Stock Analysis Report

Gilead Sciences Inc. (GILD): Free Stock Analysis Report

Qualcomm Inc. (QCOM): Free Stock Analysis Report

Apple Inc. (AAPL): Free Stock Analysis Report

American International Group Inc. (AIG): Free Stock Analysis Report

BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report

Kansas City Southern (KSU): Free Stock Analysis Report

Gatx Corp. (GATX): Free Stock Analysis Report

Check Point Software Technologies Ltd. (CHKP): 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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