Wall Street closes down after Trump touts US economic strength
All three major equity markets closed marginally lower on Wednesday, the day after President Trump delivered the State of the Union address.
The blue-chip Dow Jones Industrial Average was down 21.22 points, while the broader S&P 500 decreased 6 points -- ending a five-day streak of increases. The Nasdaq also ended down 26.80 points.
Trump used his second State of the Union on Tuesday to tout the economic benefits achieved under his administration in the past two years.
From jobs, to energy production and new trade deals, Trump boasted of his achievements while calling on Congress to build upon initiatives from his administration on health care and back new federal funding for campaigns to eliminate HIV/AIDS in the U.S. and encourage new treatments for childhood cancers.
In the address, Trump cited the tariffs on Beijing as providing the U.S. Treasury "billions of dollars." Duties in fiscal year 2017 increased by $7 billion, according to federal data.
In economic news, the U.S. trade deficit narrowed in November. The foreign-trade gap in goods and services fell 11.5 percent from the prior month to a seasonally adjusted $49.3 billion in November, the Commerce Department said Wednesday. Economists surveyed by The Wall Street Journal had expected the deficit to hit $54.3 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44296.51 | +426.16 | +0.97% |
| SP500 | S&P 500 | 5969.34 | +20.63 | +0.35% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19003.651134 | +31.23 | +0.16% |
Stocks were weighed down by communication services stocks following disappointing results from video game makers Electronic Arts, Take Two Interactive and Activision Blizzard.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TTWO | TAKE-TWO INTERACTIVE SOFTWARE INC. | 188.15 | +1.57 | +0.84% |
| EA | ELECTRONIC ARTS INC. | 166.67 | -1.30 | -0.77% |
| ATVI | NO DATA AVAILABLE | - | - | - |
| GM | GENERAL MOTORS CO. | 58.52 | +2.85 | +5.13% |
| DIS | THE WALT DISNEY CO. | 115.67 | +0.94 | +0.82% |
Videogame publisher Take-Two Interactive Software disappointed investors on Wednesday with its forecasts for fourth quarter and full-year adjusted revenue, sending its shares down nearly 14 percent.
General Motors on Wednesday reported better-than-expected earnings for the fourth quarter. Revenue at the Detroit-based company grew 1.8 percent to $38.4 billion, above analysts expectations. Adjusted profits were $2.8 billion, or $1.43 per share, down from the prior year, but exceeding Wall Street predictions.
Stock for the carmaker closed up 1.5 percent.
Walt Disney Company shares ended down slightly after the media and entertainment giant posted on Tuesday evening earnings and revenue that exceeded Wall Street’s expectations, in part due to strength in media networks.
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In Asian markets on Wednesday, Japan’s Nikkei added 0.1 percent. Markets in Hong Kong and china remained closed for the Lunar New Year holiday.
In Europe, the major markets finished the session lower. London’s FTSE slipped 0.1 percent, Germany’s DAX fell 0.4 percent and France’s CAC was off 0.1 percent.