Feb 09 2017: New All Time Highs for SPX, Comp & DJIA
Quote: Trump tax talk lifts Wall Street to record high
Stock Markets1 hour ago (Feb 09, 2017 04:32PM ET)
By Lewis Krauskopf
(Reuters) - Wall Street's three main indexes surged to fresh record highs on Thursday after President Donald Trump said he would make a major tax announcement in a few weeks. "Lowering the overall tax burden on American business is big league," Trump said during a White House meeting with airline industry executives. He gave no indication of what the announcement might entail.
The benchmark S&P 500 has rallied 7.9 percent since Trump's Nov. 8 election amid expectations he will usher in lower corporate taxes, but also reduce regulations and increase infrastructure spending. The rally had stagnated in recent days as investors sought details about Trump's policy agenda. Financials (SPSY), which have soared since the election, were the best-performing group, up 1.4 percent after three sessions of declines, while energy shares (SPNY) gained 0.9 percent. Those sectors stand to benefit should lower taxes spur economic activity as interest rates and the demand for energy rise, said Bruce McCain, chief investment strategist at Key Private Bank, in Cleveland. “Given the groups that responded and the enthusiasms within the market, it seems to be the tax comments that lit off the rally today," said Bruce McCain, chief investment strategist at Key Private Bank, in Cleveland. The Dow Jones Industrial Average (DJI) rose 118.06 points, or 0.59 percent, to 20,172.4, the S&P 500 (SPX) gained 13.2 points, or 0.58 percent, to 2,307.87 and the Nasdaq Composite (IXIC) added 32.73 points, or 0.58 percent, to 5,715.18.
All three indexes closed at all-time highs.