Published: Wed, March 01, 2017
USA | By Angel Wallace

Wall Street treads water ahead of Trump's Tuesday speech

Wall Street treads water ahead of Trump's Tuesday speech

Trump might outline in his speech at 9pm ET some of the specifics of his policy initiatives, which on the campaign trail past year included pledges of tax cuts, infrastructure spending and regulatory reforms.

The S&P 500 index showed 51 new 52-week highs and one new low, while the Nasdaq recorded 100 new highs and 35 new lows.

U.S. stocks opened lower on Monday, with the Dow on track to snap an 11-day winning streak, as technology stocks declined and investors paused ahead of President Donald Trump's address to a joint session of Congress on Tuesday.

The Dow Jones Industrial Average was down 25.2 points, or 0.12 per cent, to 20,812.24, the S&P 500 had lost 6.11 points, or 0.26 per cent, to 2,363.64 and the Nasdaq Composite had dropped 36.46 points, or 0.62 per cent, to 5,825.44.

Among individual stocks, shares of Target (TGT) are likely to come under pressure in early trading after the retail giant reported weaker than expected fourth quarter earnings and provided disappointing guidance for fiscal 2017.

"What's important is that there is more fleshed out along the lines of what kind of regulatory reform we can expect, and the tax code is a big thing".

Trump will address Congress on Tuesday evening for the first time in a speech to be broadcast live during primetime. "This market loves to trade on hope", said Michael O'Rourke, chief market strategist at JonesTrading.

CHINA CONGRESS: China's national legislature and a parallel advisory body will begin meetings this week that will help signal the direction for the region's largest economy.

ASIA'S DAY: Japan's benchmark Nikkei 225 index trimmed strong earlier gains to finish less than 0.1 percent higher at 19,118.99 and South Korea's Kospi rose 0.3 percent to 2,091.64. Australia's S&P/ASX 200 shed 0.2 percent to 5,712.20.

The Russell 2000 is up 50.84 points, or 3.8 percent.

On the currency front, the US dollar is trading at 112.12 yen compared to the 112.70 yen it fetched at the close of NY trading on Monday. Shares in Lockheed Martin climbed 2 percent and Boeing gained about 1 percent. On the Nasdaq, 1,560 issues rose and 1,191 fell.

In commodities, Brent crude settled down 0.1 per cent at US$55.93 per barrel while US West Texas Intermediate settled up 0.1 per cent at US$54.05 per barrel as a global supply glut appeared to ease.

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