US close: Markets finish firmer as White House delays metals tariffs
Trading on Wall Street finished firmer on Thursday, amid reports that the White House might yet tinker with its final proposals on tariffs.
The Dow Jones Industrial Average closed up 0.38% at 24,895.21, the S&P 500 added 0.45% to 2,738.97, and the Nasdaq 100 was ahead 0.53% at 6,966.43.
According to Bloomberg, who cited a person familiar with planning within the Oval office, the signing of Trump’s proposed punitive metals tariffs had been delayed in order to have more time to prepare the legal documents.
“US stock index futures shrugged off early weakness and pushed into positive territory a few hours ahead of the open,” noted David Morrison, chief market strategist at GKFX, earlier.
“Investors continue to play down concerns over Trump’s proposed tariffs and consequent fears of an escalation into an outright trade war.
“This is despite the resignation of Gary Cohn, Trump’s chief economic advisor, who was widely considered to be Wall Street’s man at the White House.”
Earlier in the day, European Central Bank president Mario Draghi took shots at Donald Trump's tariffs on US imports of steel and aluminium that triggered fears of a trade war.
Draghi said that while the initial impact of the tariffs was "not going to be big", he noted that "unilateral decisions are dangerous", and voiced his concerns regarding the White House's chosen direction in terms of international economic relations.
"If you put tariffs against your allies you wonder who your enemies are," Draghi said.
The ECB boss also announced that the monetary authority was taking steps towards ending its crisis-era stimulus measures on Thursday, abandoning an explicit commitment to purchase more bonds and expand its quantitative easing programme - if necessary.
Investors had been on edge since Trump announced last week that he was planning a 25% tariff on steel imports and a 10% tariff on aluminium, prompting fears of a trade war.
On Wednesday, European Commission trade chief Cecilia Malmstrom said she had prepared a provisional list of all the US products that would see higher tariffs in Europe if Trump goes ahead with his plans.
They included duties on bourbon whisky, peanut butter, cranberries and orange juice.
Malmstrom also said that the EU would be taking the case before the World Trade Organisation.
In economic data, initial jobless claims rose by 21,000 to 231,000 in the seven days ended 3 March, reaching their highest level in a month-and-a-half just one week after dropping to the lowest level since 1969.
Analysts had predicted unemployment claims to come in at 220,000, although as analysts explained, seasonal quirks have historically seen numbers spike in February.
On the corporate front, shares in pharmacy benefits manager Express Scripts picked up 8.58% after it agreed to be bought by health insurer Cigna in a cash and stock deal valued at around $67bn, which includes the assumption of approximately $15bn in Express debt.
Cigna shares, however, were 11.44% weaker.
Burlington Stores surged 5.84% after the off-price department store’s fourth-quarter earnings topped expectations, while membership warehouse Costco Wholesale slipped 0.89% after it posted higher-than-forecast quarterly revenues late on Wednesday.
Supermarket chain Kroger fell back 12.39% after beating sales estimates and reporting in line with market expectations, and fashion retailer American Eagle Outfitters dropped 9.43% despite beating same-store estimates.