By Sue Chang and Anora Mahmudova, MarketWatch
Steel stocks soar on probe on imports
The stock market ended with solid gains Thursday, with the
Nasdaq closing at a record, as investors welcomed a deluge of
stronger-than-expected corporate earnings reports and economic
data.
Comments by Treasury Secretary Steven Mnuchin, who said that
President Donald Trump's tax overhaul plans aren't linked to the
outcome of a health care bill, also bolstered sentiment, analysts
said.
The S&P 500 climbed 17.67 points, or 0.8%, to finish at
2,355.84. Financials and materials led gainers.
The Dow Jones Industrial Average gained 174.22 points, or 0.9%,
to end at 20,578.71. American Express Co.(AXP) was the best
performer among blue-chips, jumping 5.9% following earnings. Both
the S&P and the Dow ended a two-day skid.
The Nasdaq Composite , meanwhile, rose 53.74 points, or 0.9%, to
a record close of 5,916.78.
"There is a lot of good news when it comes to earnings and
economic data and not only in the U.S. but overseas as well," said
Karyn Cavanaugh, senior market strategist at Voya Financial.
Mnuchin, speaking at an Institute of International Finance
conference, said a Trump tax bill is likely to be unveiled in the
near future
(http://www.marketwatch.com/story/fate-of-trump-tax-plan-not-tied-to-obamacare-repeal-mnuchin-says-2017-04-20),
alleviating fears that the tax cuts promised by the president may
have been put on the back burner after the Republicans failed to
vote on the American Health Care Act last month.
"[His] comments today were icing on the cake and are giving
investors confidence that the long term economic backdrop will be
getting better," said Cavanaugh.
Reports earlier of a potential breakthrough
(http://www.cnn.com/2017/04/20/politics/health-care-congress-republicans/?link=mktw)
among key House Republicans to secure more support for their health
care bill had also contributed to market's upside momentum given
Trump had previously prioritized repealing and replacing Obamacare
over other policy changes.
"The market got a little aggressive on the news given the domino
effect that the health care bill would have," said Mark Kepner,
managing director of sales and trading at Themis Trading.
Economic front: Initial jobless claims rose by 10,000 to a
still-low 244,000 in mid-April. Meanwhile, the number of
out-of-work people collecting unemployment checks fell to a 17-year
low
(http://www.marketwatch.com/story/number-of-people-collecting-unemployment-checks-hits-17-year-low-jobless-claims-show-2017-04-20)
last week, underscoring the strongest U.S. labor market in
years.
The manufacturing index from the Philadelphia Fed slid in April
(http://www.marketwatch.com/story/philadelphia-fed-factory-gauge-slides-again-from-33-year-high-but-remains-elevated-2017-04-20),
but from high levels, suggesting slower growth in the factory
sector after a postelection surge.
Federal Reserve Governor Jerome Powell, speaking about capital
markets and the economy, said now was a good time to review the
raft of banking regulations put in place since the financial
crisis.
Stocks to watch: Steel stocks rallied on President Trump's
announcement of a government probe
(http://www.marketwatch.com/story/us-steel-companies-rally-as-trump-eyes-barriers-on-steel-imports-2017-04-20)
into whether foreign steel imports are harming national security.
U.S. Steel Corp.(X) jumped 7.4%, AK Steel Holding Corp.(AKS) soared
8.6% and Steel Dynamics Inc.(STLD) 6.8%.
Shares of Philip Morris International Inc.(PM) fell 3.5% after
the company fell short of earnings and first-quarter profit
expectations
(http://www.marketwatch.com/story/philip-morris-shares-slump-after-earnings-miss-2017-04-20).
Foot Locker Inc.(FL) shares initially fell but rebounded to
trade 5.4% higher even after the athletic apparel group issued a
profit warning.
(http://www.marketwatch.com/story/foot-locker-shares-slide-after-profit-warning-2017-04-20)
(http://www.marketwatch.com/story/foot-locker-shares-slide-after-profit-warning-2017-04-20)Verizon
Communications Inc.(VZ) shares fell 1.1% after the telecom company
reported first-quarter earnings that missed Wall Street
expectations.
EBay Inc.(EBAY) shares dropped 3.9% after earnings.
Qualcomm Inc.(QCOM) shares edged up 0.1% after the chip designer
beat earnings expectations
(http://www.marketwatch.com/story/qualcomm-gains-after-beating-earnings-expectations-despite-apple-legal-beef-2017-04-19).
(http://www.marketwatch.com/story/qualcomm-gains-after-beating-earnings-expectations-despite-apple-legal-beef-2017-04-19)
(http://www.marketwatch.com/story/qualcomm-gains-after-beating-earnings-expectations-despite-apple-legal-beef-2017-04-19)Other
markets: The Nikkei 225 Index rose for a fourth straight session,
leading a recovery for Asia markets
(http://www.marketwatch.com/story/nikkei-up-for-4th-straight-session-leading-asian-market-recovery-2017-04-19).
European stocks were higher, while the U.K.'s FTSE 100 index
(http://www.marketwatch.com/story/unilever-shares-push-ftse-toward-first-win-in-5-days-2017-04-20)
finished in the red.
However, the French CAC 40 index rallied more than 1%
(http://www.marketwatch.com/story/french-stocks-rise-ahead-of-european-peers-despite-election-worries-2017-04-20)
after a Harris Interactive poll signaled a win for centrist
Emmanuel Macron in Sunday's first-round presidential election.
Read:Here's how France's hotly contested election could spark
market turmoil
(http://www.marketwatch.com/story/heres-how-frances-hotly-contested-election-could-spark-market-turmoil-2017-04-19)
West Texas Intermediate crude futures for May extended losses.
Futures suffered their largest decline in weeks
(http://www.marketwatch.com/story/oil-steadies-as-investors-await-eia-inventory-report-2017-04-19)
on Wednesday after a surprise climb in U.S. gasoline supplies.
Gold prices and the U.S. Dollar Index were both little
changed.
--Barbara Kollmeyer contributed to this report.
(END) Dow Jones Newswires
April 20, 2017 16:26 ET (20:26 GMT)
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