US open: Markets little changed as Trump era dawns
As the Trump era dawns US equity markets were little changed on Friday, with investors holding back from making big deals as they watched the inauguration of the country’s 45th president.
The Dow Jones Industrial Average was up 0.44% to 19,818.79, the S&P 500 rose 0.42% to 2,273.27, and the Nasdaq added 0.39% to 5,561.89 at 1533 GMT.
In the wake of Donald Trump’s election victory in November markets rallied as investors betted on a surge on infrastructure spending, loosening of regulations and cuts to corporation tax. However, the Trump rally had recently waned as investors looked for greater policy detail.
The dollar recouped some of its previous losses. It dropped 1.3% on Tuesday after Trump said that the dollar was “too strong” which was why US companies could not compete with China.
The greenback was up 0.17% versus the pound to £0.8117, flat against the euro to €0.9373 and gained 0.11% versus the yen to 114.99.
Jasper Lawler, senior market analyst at LCG, said: “The market waiting for Trump’s inauguration has been like the countdown to the launch of a space shuttle; it should take-off but there’s a chance it could explode.
“A degree of trepidation has crept into markets in the lead up to the first week of Trump’s presidency. Markets have listened as Trump talked the talk and they will be watching to see how he walks the walk. His aides have suggested Trump is preparing to sign a number of ‘executive orders’ during his first week in the White House. It would make sense for Trump to want to score some early victories before going through the lengthier process of getting bills passed by Congress.”
He added: “If you thought The Donald could disrupt things with his Twitter account, just wait until he has executive authority.”
Meanwhile, oil prices edged higher ahead of a weekend meeting in Vienna to analyse producers’ compliance with the OPEC-led supply cut. West Texas Intermediate and Brent crude were up 2.5% to $53.50 a barrel and $55.57, respectively.
In corporate news, pharmaceutical Bristol-Myers tumbled 9.59% after it said it would not pursue a quicker approval of its lung cancer combination treatment.
IBM rose 1.62% following better-than-expected fourth-quarter earnings.
American Express fell 0.63% after it reported quarterly earnings per share on Thursday that missed analysts’ expectations, while General Electric was also down 2% after the utility giant reported that quarterly revenue fell short of forecast.
Merck & Co gained 3.86% after Jefferies increased its earnings estimates for the pharmaceutical.
Trump is expected to be sworn in as president around 1700 GMT and Skyworks is due to post earnings after markets close.