Stocks Edge Higher Friday 01/20 16:13
Materials companies led U.S. stocks modestly higher Friday, recouping much
of the market's loss from a day earlier and snapping a 5-day losing streak for
the Dow Jones industrial average.
(AP) -- Materials companies led U.S. stocks modestly higher Friday,
recouping much of the market's loss from a day earlier and snapping a 5-day
losing streak for the Dow Jones industrial average.
Another crop of encouraging company earnings news also helped lift the
market, but investors were mostly focused on events in Washington as Donald
Trump was sworn in as the 45th president of the United States.
The major stock indexes pulled back slightly as Trump delivered remarks
after taking the oath of office. Among topics of particular interest to Wall
Street, the speech touched on trade and the Trump administration's intention of
protecting the U.S. from "the ravages of other countries making our products,
stealing our companies, and destroying our jobs."
"The market is still embracing the Trump agenda, based on the market's
reaction to the speech," said Quincy Krosby, market strategist at Prudential
Financial. "Now the question the market has is, specifically, what does all of
that mean in terms of trade?"
The Dow rose 94.85 points, or 0.5 percent, to 19,827.25. The Standard &
Poor's 500 index gained 7.62 points, or 0.3 percent, to 2,271.31. The Nasdaq
composite index added 15.25 points, or 0.3 percent, to 5,555.33.
Despite Friday's gains, the three major stock indexes ended the week lower.
Stocks have slowed in 2017 after surging for several weeks following
Election Day on investor optimism that a Trump administration and Republican
Congress would usher in business-friendly policies. But the possibility of
increased tariffs or trade restrictions has also loomed as a potential drag in
profits for big U.S. companies.
"Historically, the market has performed best in the November-April time
frame," said Sam Stovall, chief investment strategist at CFRA Research. "The
Trump victory added a tailwind to this traditional seasonal factor."
Typically, stocks don't do well on inauguration day. Going back to 1928, the
S&P has averaged a drop of 1.05 percent on inauguration days, according Bespoke
Beyond the presidential transition in Washington, investors pored over the
latest batch of corporate earnings Friday, bidding up shares in companies that
reported results that beat Wall Street's expectations.
Skyworks Solutions jumped 13 percent, the biggest gainer in the S&P 500. The
stock climbed $10.21 to $88.67. Citizens Financial Group gained $1.09, or 3.1
percent, to $35.82.
Traders also drove up shares in Procter & Gamble after the consumer goods
maker released a strong growth forecast. The stock added $2.75, or 3.2 percent,
Strong subscriber numbers helped lift AT&T, giving a boost to phone company
stocks overall. AT&T added 45 cents, or 1.1 percent, to $41.45.
Some companies' earnings failed to impress the market.
General Electric slid 2.2 percent after the conglomerate reported
fourth-quarter revenue that fell short of analysts' forecasts. The stock gave
up 68 cents to $30.53.
Investors sold off Bristol-Myers Squibb after the drugmaker said it won't
pursue accelerated regulatory approval for a two-drug lung cancer treatment.
The stock was the biggest decliner in the S&P 500 index, shedding $6.26, or
11.3 percent, to $49.23.
Major stock indexes overseas were mixed Friday.
Germany's DAX rose 0.3 percent, while Britain's FTSE 100 fell 0.1 percent.
France's CAC 40 added 0.2 percent. In Asia, Hong Kong's Hang Seng shed 0.7
percent after the Chinese government said the economy grew at a 6.8 percent
annual rate in the last quarter, even as full-year growth increased 6.7
percent, the weakest in three decades. Tokyo's Nikkei 225 index rose 0.3
Benchmark U.S. crude rose $1.05, or 2 percent, to close at $52.42 a barrel
in New York. Brent crude, used to price international oils, added $1.33, or 2.5
percent, to close at $55.49 a barrel in London.
In other energy trading, wholesale gasoline gained 3 cents to $1.57 a gallon
and heating oil rose 3 cents to $1.65 a gallon. Natural gas slid 16 cents, or
4.9 percent, to $3.20 per 1,000 cubic feet.
Bond prices were little changed. The yield on the 10-year Treasury note held
steady at 2.47 percent. Yields have been rising as investors expect inflation
In currency trading, the dollar fell to 114.31 yen from Thursday's 114.80
yen. The euro rose to $1.0707 from $1.0659. The British pound edged up to
$1.2378 from $1.2337.
Gold dropped $3.40 to settle at $1,204.90 an ounce, while silver fell 3
cents to $17.03 an ounce. Copper slipped a penny to $2.63 a pound.