Thursday, February 9, 2017

stocks go up under Trump

U.S. equities notched fresh record highs on Thursday thanks to comments from President Donald Trump that specific tax reform plans — something “phenomenal” in his words — would be announced in the next two or three weeks. This single handedly revitalized the pro-Trump dynamic on Wall Street that had faded in recent days amid political bickering, a poorly received immigration clampdown and worries over possible trade wars.
This also restores some of the early presidency momentum that had been lost amid, for instance, reports of difficulties with plans to replace Obamacare, enact a border adjustment tax and possible drags on the national debt.
In the end, the Dow Jones Industrial Average wafted up 0.6%, the S&P 500 moved up 0.6%, the Nasdaq also moved up 0.6% and the Russell 2000 finished 1.5% higher. Treasury bonds came under pressure, snapping a four-day winning streak; the dollar was strong against the yen; oil gained 1.3%, despite some very bearish inventory data earlier this week; and gold drifted lower.
As is wont to happen during “Trump-flation” rally days, bank stocks led the way higher with a gain of 1.4% on net interest margin hopes. Energy stocks followed with a gain of 0.9%. Iron miner Cliff’s Natural Resources Inc (NYSE:CLF) surged 19.4% thanks to a big fourth-quarter earnings beat on strong revenue growth. Helpdesk services supplier Zendesk Inc (NYSE:ZEN) gained 15.5% thanks to better-than-expected results on a 40% increase in billings from last year. Kellogg Company (NYSE:K) gained 4% on earnings.

Trump must be doing something right. According to this article on MSN, the stocks went up

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