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With Trump in Office, The S&P 500 Is Free to Try for Another Breakout

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On Inauguration Day, Friday, stocks moved higher, but with small gains that reflected investors' caution after the rally that resulted from a new direction in policies that could have an impact on corporate profits.

The Dow Jones Industrial Average rose 0.5%, the S&P 500 gained 0.3%, the Nasdaq gained 0.3% and the Russell 2000 rose 0.5%. The overall stock market has risen about 7% since the election in November.

On Friday, stocks started strong but halved the early gains during the new president's inaugural speech. President Donald Trump's address had a populist tone, emphasizing protectionist trade policies and an emphasis on bringing jobs back to U.S. shores - no new policies beyond his campaign promises to encourage a breakout in stock prices.

Telecom services and materials led the S&P 500, each gaining 0.9%. All of the sectors of the 500 ended in the black.

Crude oil (WTI) closed at $53.25, up 2.1%. The sector's stocks gained 0.5%.

At the close the Dow Jones Industrial Average gained 95 points at 19,827, the S&P 500 rose 8 to close at 2,271, the Nasdaq gained 15 points at 5,555, and the Russell 2000 closed at 1,352 for a gain of 6 points. The NYSE's primary exchange traded 972 million shares with total volume of 3.5 billion shares. The Nasdaq crossed 1.7 billion shares. On the Big Board, advancers outpaced decliners by 1.8-to-1, and on the Nasdaq, advancers led by 1.6-to-1. Blocks on the NYSE increased to 7,066 from 6,026 on Thursday.

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Trade of the Day: The Future of Oracle Corporation (ORCL) Stock Looks Bright

Thursday's low of 19,678 was the lowest level since Dec. 9. But Friday's recovery is technically favorable. The big question is, "Can the index gather enough buyers to break through the 20,000 level that was very nearly exceeded on Jan. 6? The intraday high on the 6th missed a breakout by a mere 0.37!

Conclusion: With a shortened week due to Martin Luther King Day and a presidential inauguration there was little technically to change the market's direction. This week, however, with its congressional battles and the success or lack thereof for the new administration's first attempts at policy change, should provide some direction.

Technically, the stock market is poised for a breakout, but the one-month lows on Thursday on the part of the Dow and the Russell 2000, even though both recovered on Friday, are a bit unsettling.

Today's Trading Landscape

To see a list of the companies reporting earnings today, click here .

For a list of this week's economic reports due out, click here .

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The post With Trump in Office, The S&P 500 Is Free to Try for Another Breakout appeared first on InvestorPlace .

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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