U.S. Stocks Dip Before Trump's Speech as Consumer Stocks Decline
(Bloomberg) -- U.S. stocks fell as investors awaited details on specific policy plans from U.S. President Donald Trump's first address to Congress.
The S&P 500 Index lost 0.3 percent to 2,363.64 at 4 p.m. in New York as the Dow Jones Industrial Average lost 25 points to 20,812, ending a 12-day streak that marked its longest rally since 1987.
- Consumer discretionary stocks down 0.7% for biggest loss in market
- Industrial and telecommunications shares down at least 0.4%
- Traders are seeking answers from Trump tonight on how he plans to bring the fundamental changes he has promised to U.S. health-care policy, the tax system, defense spending and immigration
- With the earnings season drawing to a close, about three-quarters of S&P 500 members that have reported so far beat profit estimates and a little over half exceeded sales forecasts, according to data compiled by Bloomberg
- While the reflation trade is still intact, stocks look stretched in the short term, Bank of America Merrill Lynch strategist James Barty wrote in a note; S&P 500 closed on Monday about 6 points above its year-end average strategist consensus level of 2,364
- ECONOMY:
- The U.S. economy grew in the fourth quarter at an unrevised 1.9% pace, as slower investment by businesses and state and local agencies offset stronger household purchases
- Core PCE -- which is tied to consumer spending and strips out food and energy costs -- climbed at a 1.2% annualized pace, compared with a previously reported 1.3 percent
- Chicago Business Activity at 57.4 after 50.3 the prior month
- EARNINGS:
- After-market Tuesday: Envision Healthcare (EVHC), AMC Entertainment Holdings (AMC), Sarepta Therapeutics (SRPT), LogMeIn (LOGM), Palo Alto Networks (PANW), TESARO (TSRO), ACADIA Pharmaceuticals (ACAD), salesforce.com (CRM)
- Pre-market Wednesday: Dollar Tree (DLTR), Lowe's Cos (LOW), Best Buy (BBY)
- Stoxx Europe 600 Index rose 0.2% at the close, trimming intraday declines on Monday as construction companies rallied on Trump's comments about “big” spending on infrastructure
- Bullish Mom and Pop Behind U.S. Stock Market Rifling Off Records
- Traders Glued to These Trump Stock Trades Heading Into Address
- All's Not Placid Beneath Stock Market Surface With Trump on Tap
- Biblically Responsible ETFs Offer a New Twist on Value Investing
For related equity markets:
To contact the reporter on this story: Oliver Renick in New York at orenick2@bloomberg.net.
To contact the editors responsible for this story: Chris Nagi at chrisnagi@bloomberg.net, Richard Richtmyer, Lester Pimentel
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