US indices notched further gains at close today after President Trump unveils his budget wish list for FY18.
However, the horrific bombing in Manchester gave the market pause. The Dow closed +0.21% to 20,937.91.
Smaller increases were seen on Nasdaq of +0.08% to 6,138.71 posting its fourth straight session of gains. The S&P +0.18% to 2,398.42.
- Dow Jones Index 20,937.91 ++0.21%
- S&P 500 2,398.42 +0.18%
- Nasdaq 6,138.71 +0.08%
- Russell 2000 1377.14 0.72%
- NYSE Composite 11585.21 +0.37%
- Gold 1251.00 -0.36%
- Oil 51.48 +0.02%
Wall and oil, a focus in budget
Director Mick Mulvaney, director of Trump's Office of Management and Budget at a press briefing outlined the President’s FY2018 budget report titled, The New Foundation for American Greatness, or what the director dubbed the “Taxpayer First Budget” which sought to balance the need for growth and spending priorities.
Mulvaney defined Trumponomics as “sustained, 3% growth.”
Items that cheered the market included the potential for tax cuts and tax reform through simplifying the tax code.
The proposed Wall across the border with M remained in the budget, Mulvaney confirmed, “We are absolutely dead serious about the wall. In fact, after taking care of national security and the vets, my guess is, it's in the President's top three.”
There is also a proposal to sell off half of the US government’s strategic reserves to generate cash of an estimated $16.6 bn which the government expects to benefit the taxpayer.
Strong corporate earnings main story for investors
Even as the market considers the political context of President Trump’s overseas trip, domestic policies and troubles; analysts and investors remain upbeat seeing a silver-lining scenario on the back of strong Q1 corporate earnings and a stable economy.
The banking sector helped to drag the indices upward. Amongst gainers on the S&P index were Zions Bancorp posted +2.8% to $41.34 and Regions Financial Corp was also up +2.8% to $14.47.
Goldman Sachs was up 1.7% to $219.64.
Agilent Technologies, medical equipment and tech company, also rose after reporting earnings and revenue that beat Wall St expectations. It was up +4.6% to $58.70.
Autozone Inc led the top decliners. Its stock plunged 11.8% to $581.40 after reporting earnings that failed to beat analysts’ estimates.
On the smaller companies index, Mylan, a global pharmaceutical company, was up +2.5% to $39.59 and Monster Beverage Corp climbed +2.3% to $49.43.
The bombings in Manchester saw US Treasuries rise and gold prices were flat. Yields rise as bond prices fall. Government bonds fell and the 10-year US Treasury rose +0.03 points to 2.285% from 2.254%.
The price of oil continues to surge ahead on expectations that the Organization for Petroleum Exporting Countries (OPEC) are likely to extend output cuts at its meeting scheduled for later this month.