By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica
Ten of the S&P 500's 11 primary sectors are higher on the
day
U.S. stocks rose on Tuesday, with major indexes adding to their
string of records as bank stocks continued their recent
advance.
The day's gains were broad, with Home Depot Inc. and Wal-Mart
Stores Inc. providing support to the Dow after reporting
results.
The Dow Jones Industrial Average rose 0.4%, or 79 points, to
20,703. The S&P 500 index rose 0.4% to 2,360, a gain of 8
points. The Nasdaq Composite Index added 21 points, or 0.4%, to
5,859.
All three were at all-time highs, continuing a recent streak.
The Dow is on track for its eighth straight daily advance, while
both the S&P and the Nasdaq have gained in nine of the past 10
sessions.
The market has been in a pronounced uptrend since the election
of Donald Trump in November. Investors are hoping that the policies
he is expected to pursue, including tax cuts and deregulation, will
accelerate economic expansion and lift corporate profits. Trump's
recent suggestions that policies would be unveiled soon have
spurred recent buying, although few details have been
forthcoming.
With valuations stretched by many metrics, some investors are
concerned that the market could be vulnerable in the event the
policies disappoint in their magnitude or structure.
"The rally is getting long in the tooth, and once the euphoria
wears off, when will get policies, and how will they impact
corporate profits?" said Katrina Lamb, head of investment strategy
and research at MV Financial. "If you think there are still
double-digit gains left to be had, that seems optimistic. A lot of
what we've seen lately seems to be people who didn't buy into the
rally at first and are coming in now in something of a 'pain
trade.'"
Ten of the S&P 500's 11 sectors were higher on the day, with
real estate the only declining group. Bank stocks were among the
biggest gainers, up 0.5%. The industry has led the market's
postelection rally
(http://www.marketwatch.com/story/stock-markets-trump-rally-is-mostly-a-bank-rally-2016-11-17).
J.P. Morgan Chase & Co. (JPM) rose 0.5% while Bank of America
Corp. (BAC) rose 0.7%.
"In general we're not getting a lot of upwardly revised
guidances to corporate outlooks, but banks are seeing a good upward
trend, in part because rising rates will help with their net
interest margins," Lamb said.
Read:How Trump's stock market ranks in his first 30 days in
office
(http://www.marketwatch.com/story/how-president-trumps-stock-market-performance-in-his-first-30-days-ranks-2017-02-17)
Economic docket: In the latest economic data, Markit's read on
manufacturing fell in February, as did the firm's services
gauge.
Data preview:'Soft' side of economy soars under Trump. But
here's the 'hard' truth
(%e2%80%98Soft%e2%80%99%20side%20of%20economy%20soars%20under%20Trump.%20But%20here%e2%80%99s%20the%20%e2%80%98hard%e2%80%99%20truth)
(http://projects.marketwatch.com/2017/trump-today-signup/)
Federal Reserve officials should also draw some attention.
Philadelphia Fed President Patrick Harker is scheduled to speak at
the Wharton School of the University of Pennsylvania at noon
Eastern Time.
In a Friday interview for Market News International, Harker said
he "would not take March off the table at this point" for a
potential hike in U.S. interest rates. That view sent Treasury
yields and the dollar higher in Asian trading Tuesday.
Stocks to watch: Retailers are in the spotlight, with shares of
Home Depot Inc. (HD) up 1.2% after the company reported
better-than-expected results, upping its dividend and setting a $15
billion buyback.
Wal-Mart Stores Inc.(WMT) was up 3% after posting earnings that
beat forecasts and guidance that was in line with its forecast. The
retailer also raised its dividend 2% to $2.04
(http://www.marketwatch.com/story/wal-mart-raises-dividend-2-to-204-2017-02-21).
Verizon Communications Inc.(VZ) and Yahoo Inc.(YHOO) are
expected to cut their merger price by as much as $350 million, The
Wall Street Journal reported. Verizon rose 0.8% while Yahoo added
0.7%.
U.S.-listed shares of HSBC Holdings PLC(HSBA.LN) fell 5.7%. The
Asia-focused bank said its net loss widened to $4.23 billion
(http://www.marketwatch.com/story/hsbc-loss-widens-to-423b-plans-further-buyback-2017-02-21)
in the fourth quarter from $1.33 billion in the year-ago
period.
U.S.-listed shares of Unilever PLC(ULVR.LN) tumbled 8%, and
Kraft-Heinz Co.(KHC) dropped 4% after Heinz on Sunday dropped its
$143 billion offer
(http://www.marketwatch.com/story/kraft-heinz-withdraws-bid-for-unilever-2017-02-19)
for the food rival just two days after making public a bid to
combine the two companies.
Other markets: Asian markets traded mixed
(http://www.marketwatch.com/story/china-hong-kong-stocks-get-off-to-fast-start-on-slow-trading-day-2017-02-19),
with the Nikkei 225 index closing up 0.7% and the Hong Kong Hang
Seng Index dropping 0.8%. European stocks firmed across the board
(http://www.marketwatch.com/story/european-stocks-rise-as-manufacturing-activity-perks-up-2017-02-21)
after data showed a better-than-expected reading on preliminary
manufacturing data.
The ICE Dollar Index
(http://www.marketwatch.com/story/dollar-rises-after-fed-comments-euro-weakens-2017-02-2)
was higher, with the dollar gaining against both the euro and the
British pound . Crude-oil futures
(http://www.marketwatch.com/story/oil-prices-rise-as-investors-increase-bullish-bets-on-prices-2017-02-21)
rose, while gold prices pulled back.
Read:Why the 'next leg in the oil bull market' is coming soon
(http://www.marketwatch.com/story/why-the-next-leg-in-the-oil-bull-market-could-come-soon-2017-02-20)
(END) Dow Jones Newswires
February 21, 2017 10:17 ET (15:17 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.