Stock Market News for January 23, 2017

On Friday, Donald Trump was sworn in as the new U.S. President and gave a protectionist speech, which in turn had a broad-based positive impact on U.S. benchmarks. In his speech, Trump focused on America’s prosperity and strength and pledged to make “America great again.” All three key indexes rallied with the Dow snapping a five-session losing stretch. However, the major indexes registered weekly losses as investors looked for more clarity on Trump’s economic policies.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) increased 0.5%, to close at 19,827.25. The S&P 500 rose 0.3% to close at 2,271.31. The tech-laden Nasdaq Composite Index closed at 5,555.33, also gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) significantly declined 9.7% to settle at 11.54. A total of around 6.6 billion shares were traded on Friday, higher than the last 20-session average of 6.1 billion shares. Advancers outpaced declining stocks on the NYSE. For 61% stocks that advanced, 34% declined.

What Boosted the Benchmarks?

After being sworn in as the 45th President of America, Donald Trump gave a protectionist speech. In his speech Trump said “the citizens of America, are now joined in a great national effort to rebuild” the country and will “restore its promise for all” of its people. He also stressed on improving infrastructure and industry and bringing back jobs and wealth. ( Read More )

Trumps’ speech boosted investor sentiment and boosted all the three key indexes into positive territory. Most of the major S&P 500 sectors ended in the green on Friday. The Materials Select Sector SPDR (XLB) rose 0.9% and was the biggest advancer among the S&P 500 sectors. Some of its key holdings including, Dow Chemical Company (DOW), Praxair, Inc. ( PX) and LyondellBasell Industries N.V. (LYB) increased 0.5%, 1.1% and 1.3%, respectively.

Additionally, Procter & Gamble Company’s ( PG) shares climbed 3.3% after its fiscal second-quarter earnings and revenues exceeded expectations. The bottom line also increased by 3.8% year-over-year. ( Read More )

Gains in Procter & Gamble led the Consumer Staples Select Sector SPDR (XLP) to advance 0.7% and was second best performing sector in the S&P 500. Key components from this sector including Coca-Cola Company ( KO) and Philip Morris International Inc. (PM) soared 0.4% and 0.8%, respectively. While, Coca-Cola possess a Zacks Rank #4 (Sell), Philip Morris International have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

However, shares of Bristol-Myers Squibb Company ( BMY) slumped 11.3% after the company disclosed that it will not seek accelerated approval in the U.S. for a combination of its two immuno-oncology treatments. ( Read More )

Decline in Bristol-Myers Squibb weighed on the Health Care Select Sector SPDR (XLV), which fell 0.3% and was the only decliner among the S&P 500 sectors. One of its major components Gilead Sciences Inc. ( GILD) fell 0.8%.

Weekly Roundup

For the week, both the Dow and Nasdaq declined 0.3% and the S&P 500 fell 0.2%. Benchmarks fell for the week as investors looked for clues on ways Trump could boost the economy. Also, comments from the President-elect weighed on the U.S. dollar, which eventually dragged markets down over the week. Also, U.K. Prime Minister Theresa May’s speech regarding Brexit and ECB’s decision to keep key rates unchanged pulled benchmarks southward.

Stocks That Made Headlines

Qualcomm Faces $1B Patent Royalty Suit from Apple

Qualcomm Inc. (QCOM) has recently been pressed with a $1 billion lawsuit related to licensing royalty payments by tech giant Apple Inc. ( AAPL). ( Read More )

AIG Enters Into Reinsurance Deal to Restore Profitability

American International Group, Inc. ( AIG) has entered into a reinsurance agreement with National Indemnity Co. (NICO), a subsidiary of Berkshire Hathaway Inc. ( BRK.B). ( Read More )

Kansas City Southern Q4 Earnings Miss, Decline Y/Y

Kansas City Southern ( KSU) performed disappointingly in the fourth quarter of 2016, reporting lower-than-expected earnings per share and revenues. ( Read More )

GATX Corp's Q4 Earnings & Sales Top; Shares Gain

GATX Corporation (GATX ) reported better-than-expected earnings per share and revenues in the fourth quarter of 2016. ( Read More )

Check Point Stock Up on Q4 Earnings & Sales Beat

Shares of Check Point Software Technologies Ltd. ( CHKP) were up 7.5% yesterday following the company’s announcement of impressive fourth-quarter 2016 results. ( Read More )

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?

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Stock Market Roundup Jan. 23: Stocks Down on Trump Uncertainty

U.S. stocks are down on Monday, as investors are looking for more details on President Donald Trump’s policies. Sector-wise, energy was down, at one point, 1.17%, industrials down 0.87%, and financials down 0.52%. Real estate was one of the few bright spots, up 0.71%.

Earnings season is in full swing, with McDonald’s MCD and oilfield services major Haliburton HAL reporting today before the bell. This week is a big week for tech earnings, with almost all of the largest tech corporations reporting in the next few days. Check out the latest episode of the Zacks Friday Finish Line podcast for an in-depth Tech Earnings Preview.

Zacks Rank #1 (Strong Buy) Biggest Movers

Value: Angang Steel ANGGY

Growth: Spartan Motors SPAR

Momentum: Teck Resources TECK

VGM: MiX Telematics MIXT

Income: MIXT

Major Indexes

DOW: 19,801.70 / -25.55 / -0.13%

S&P 500: 2,265.34 / -5.99 / -0.26%

NASDAQ: 5,552.94 / -2.39 / -0.04

Top Headlines

Here’s Why Qualcomm (QCOM) is Tumbling Today

Monday saw shares of chipmaker Qualcomm QCOM tumble 14% in morning trading after it was hit by multiple downgrades. The company is still reeling from last week’s $1 billion lawsuit filed against it by Apple AAPL, just days after the U.S. government accused Qualcomm of utilizing anticompetitive tactics to monopolize semiconductors in the mobile phone industry.

Sprint to Purchase 33% Stake in Jay Z’s Tidal

Wireless carrier Sprint S announced it will be purchasing a 33% stake in the streaming service Tidal, owned by hip-hop mogul Jay Z. While Sprint did not say when the acquisition would be finalized, the new deal is part of a partnership between both companies where Sprint companies will receive exclusive Tidal content. Sprint has about 45 million retail customers.

McDonald’s CEO Bullish Despite All-Day Breakfast Slump

Fast food chain McDonald’s released its fourth quarter fiscal 2016 financial results on Monday before the bell, beating expectations on both the top and bottom lines. However, same-store sales declined considerably in comparison to the year-ago period, suggesting the popularity of its All-Day breakfast menu may be waning.

Stocks that Aren't in the News…Yet

You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year.

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