Market Snapshot: Dow struggles to continue record run as traders await Trump speech

U.S. stocks edged lower on Tuesday, with investors reluctant to extend the market’s series of records as they looked ahead to a speech by President Donald Trump that could determine whether the market’s recent surge will be justified by government policy.

The Dow Jones Industrial Average DJIA, -0.05%  dipped 20 points to 20,817, a decline of about 0.1%. The blue-chip average is coming off its 12th straight record close the longest such streak since 1987. If it ends higher on Tuesday, posting its 13th straight record, that would make history: the longest string of records in the history of the 121-year-old equity benchmark, according to Dow Jones data.

The S&P 500 SPX, -0.14%  is coming off an all-time closing high of its own, and it dipped 4 points to 2,366 on Tuesday, a decline of 0.2%. The Nasdaq Composite COMP, -0.31%  fell 10 points, or 0.2%, to 5852, though it remains a few points shy of its own record.

Recent gains have been fueled by Trump’s November election. Investors are betting that his policies on taxes and regulation will accelerate economic growth and boost corporate profits. However, few details on policy specifics or timing have been forthcoming, something analysts say is increasingly needed.

“Whether or not current trends persist is likely to depend on Trump’s performance this evening,” said Kathleen Brooks, research director at City Index, in a note.

See: Here’s how analysts say you should trade Trump’s speech to Congress

And read: How the stock market has reacted to State of the Union speeches

The S&P is on track for a February gain of 3.8%, representing its largest monthly rise since March 2016. The Dow is up 4.8% in February for its best performance since November, while the Nasdaq has gained 4.2% in its fourth straight monthly advance.

In the latest economic data, fourth-quarter GDP was 1.9%, held down by a bigger trade deficit even as consumer spending rebounded strongly. Reads on consumer confidence will be released later in the session, and the indicators will be studied for what they might say about the timing of the Federal Reserve’s next interest rate increase.

SpaceX plans to take tourists around moon in 2 years

(1:12)

Billionaire Elon Musk’s SpaceX said it plans to take tourists on a trip around the moon in as little as two years.

Check out: MarketWatch’s Economic Calendar

Three Federal Reserve officials are slated to speak Tuesday.

The odds of a U.S. interest-rate hike next month jumped above 50% on Monday after Dallas Fed President Rob Kaplan said a tightening might come in the near future.

Philadelphia Fed President Patrick Harker is due to address the economic outlook at Temple University at 3 p.m. Eastern, and San Francisco Fed President John Williams is on tap to talk about the economic outlook at the chamber of commerce in Santa Cruz, Calif., at 3:30 p.m. Eastern.

After the market’s close, St. Louis Fed President James Bullard is expected to give a speech on the U.S. economy and monetary policy at George Washington University at 6:40 p.m. Eastern.

Stock movers: Shares in Target Corp. TGT, -13.16%  plunged 13% following the retailer’s gloomy outlook, and Perrigo Co. PRGO, -11.48%  dropped 11% after the drugmaker late Monday reported a loss and said it had sold certain drug royalties.

Hertz Global Holdings Inc. HTZ, +7.57%  traded 3.7% higher after the car-rental company late Monday posted a larger-than-expected quarterly loss.

Theme-park operator SeaWorld Entertainment Inc. SEAS, +2.61%  rose 1.2% despite revealing a bigger-than-anticipated quarterly loss.

Other markets: Oil futures CLJ7, -1.04%  and gold futures GCJ7, -0.12%  traded modestly lower, while a key dollar index DXY, -0.22% dipped. European stocks SXXP, +0.10% were little changed, and Asian markets closed mostly higher.

Filed in: Top News Tags: 

You might like:

The Wall Street Journal: Tony Evers wins Wisconsin Democratic primary to challenge Scott Walker The Wall Street Journal: Tony Evers wins Wisconsin Democratic primary to challenge Scott Walker
Twitter temporarily blocks Alex Jones from tweeting Twitter temporarily blocks Alex Jones from tweeting
Asia Markets: Asian markets retreat, weighed by sinking tech stocks Asia Markets: Asian markets retreat, weighed by sinking tech stocks
The Wall Street Journal: Transgender woman wins Vermont Democratic primary for governor The Wall Street Journal: Transgender woman wins Vermont Democratic primary for governor
Twitter reportedly blocks Alex Jones from tweeting Twitter reportedly blocks Alex Jones from tweeting
The Wall Street Journal: Kansas governor concedes to Kobach in tight GOP primary The Wall Street Journal: Kansas governor concedes to Kobach in tight GOP primary
The Wall Street Journal: Defense Department spokeswoman investigated for treatment of staffers The Wall Street Journal: Defense Department spokeswoman investigated for treatment of staffers
The Wall Street Journal: Buffett’s Berkshire Hathaway buys another 12.4 million Apple shares The Wall Street Journal: Buffett’s Berkshire Hathaway buys another 12.4 million Apple shares

Leave a Reply

Submit Comment
© 2018 Stock Investors News. All rights reserved. XHTML / CSS Valid.