Stock Market News for January 27, 2017

Benchmarks closed mixed on Thursday despite continued optimism over Trump's growth-focused actions and new set of earnings results. Strong gains in financials, industrials and materials led the Dow to reach at all-time record high level for the second consecutive session. Declines in healthcare sector weighed on the S&P 500 and Nasdaq.

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 0.2%, to close at 20,100.91. However, the S&P 500 fell 0.1% to close at 2,296.68. The tech-laden Nasdaq Composite Index closed at 5,655.18, losing 1.16 points. The fear-gauge CBOE Volatility Index (VIX) declined 1.7% to settle at 10.63. A total of around 6.70 billion shares were traded Thursday, higher than the last 20-session average of 6.51 billion. Decliners outpaced advancing stocks on the NYSE. For 50% stocks that declined, 46% advanced.

Dow Stays Above 20,000 Level

After his recent moves to revive two major oil pipeline projects, Trump signed executive orders to improve border security and control immigration. This in turn raised speculation that Trump will proceed with tax cuts, financial deregulation and introduce expansionary infrastructure spending.

Strong optimism over Trump's economic policies led the Financial Select Sector SPDR (XLF) to rise 0.3%, which was the second best performing sector among the S&P 500. Some of its key holdings, including JPMorgan Chase & Co. ( JPM ) and Goldman Sachs Group, Inc. ( GS ) advanced 0.8% and 1%, respectively.

Further, Southwest Airlines Co's ( LUV ) shares jumped 9% reported impressive results for the fourth quarter of 2016. The company beat earnings estimates and delivered better-than-expected revenues. ( Read More )

Gains in Southwest Airlines led the Industrial Select Sector SPDR (XLI) to increase 0.2%, which became third biggest gainer among the S&P 500 sectors. Some of its components including American Airlines Group Inc. ( AAL ) and Delta Air Lines, Inc. ( DAL ) advanced 3.5% and 1.4%, respectively.

Moreover, shares of Dow Chemical Company ( DOW ) advanced 2% after the company logged forecast-topping earnings in fourth-quarter, helped by its cost-cutting and productivity actions and continued focus on consumer-driven markets. ( Read More )

Rise in Dow Chemical led the Materials Select Sector SPDR (XLB) to advance 0.3% and was the best performer among the S&P 500 sectors. Key holdings from the sector including, E. I. du Pont de Nemours and Company ( DD ) and PPG Industries, Inc. ( PPG ) rose 1.7% and 0.6%, respectively.

S&P 500 And Nasdaq Close In Red

Meanwhile, Bristol-Myers Squibb Company's ( BMY ) shares fell 5.5% after the company missed its earnings guidance for 2017. The company reported a mixed fourth quarter, with earnings missing expectations while sales beating the same. ( Read More )

Also, shares of Johnson & Johnson ( JNJ ) declined 0.9% after the company decided to acquire Swiss biotechnology company Actelion for $30 billion in order to boost its roster of rare disease treatments. ( Read More )

Losses in Bristol-Myers Squibb and Johnson & Johnson led the Health Care Select Sector SPDR (XLV) to fall 0.8%, which was the worst performing sector in the S&P 500. Some of its key components including Amgen Inc. ( AMGN ) and Celgene Corporation ( CELG ) decreased 0.7% and 2.2%, respectively.

Stocks That Made Headlines

Alphabet Misses on Q4 Earnings, Beats Revenues

Alphabet ( GOOGL ) fourth-quarter earnings missed the Zacks Consensus Estimate due to higher taxes, but were up 7.1% year over year. ( Read More )

Starbucks Q1 Earnings in Line, Stock Hit by View Cut

Starbucks Corporation ( SBUX ) reported fiscal first quarter earnings that managed to meet the consensus mark, but revenues missed the same. ( Read More )

JetBlue Airways Declines Despite Q4 Earnings Beat

JetBlue Airways Corporation's ( JBLU ) fourth-quarter 2016 adjusted earnings per share beat the Zacks Consensus Estimate by a penny. ( Read More )

Wynn Resorts Stock Up Despite Earnings Miss in Q4

Shares of Wynn Resorts Ltd. ( WYNN ) increased after the company reported mixed fourth-quarter 2016 results. ( Read More )

Colgate Q4 Earnings In Line, Revenues Lag; Stock Down

Colgate-Palmolive Co. ( CL ) posted in-line earnings in fourth-quarter 2016, maintaining its trend of beating and meeting estimates in alternate quarters for the sixth straight time. ( Read More )

Zacks' Top 10 Stocks for 2017

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J P Morgan Chase & Co (JPM): Free Stock Analysis Report

Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report

American Airlines Group, Inc. (AAL): Free Stock Analysis Report

Delta Air Lines, Inc. (DAL): Free Stock Analysis Report

Amgen Inc. (AMGN): Free Stock Analysis Report

Celgene Corporation (CELG): Free Stock Analysis Report

Southwest Airlines Company (LUV): Free Stock Analysis Report

Dow Chemical Company (The) (DOW): Free Stock Analysis Report

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

Johnson & Johnson (JNJ): Free Stock Analysis Report

Alphabet Inc. (GOOGL): Free Stock Analysis Report

Starbucks Corporation (SBUX): Free Stock Analysis Report

JetBlue Airways Corporation (JBLU): 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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