US stocks rise, Treasuries slip ahead of Trump inauguration

US stocks rose, while Treasuries retreated to the lowest level of the year as attention turns to Washington for Donald Trump’s inauguration as the nation’s 45th president.

The Dow Jones Industrial Average climbed back above 19,800 after erasing its gain for the year Thursday.

The measure is about 200 points below its record as trades sparked by Trump’s election have stalled in the past month. General Electric Co. slumped after sales missed estimates.

Yields on 10-year Treasuries rose to 2.50 percent, while the Bloomberg Dollar Spot Index clung to its first weekly advance in the past four. Gold moved above $1,200 an ounce.

Investors are avoiding taking firm positions before Trump is sworn in as the 45th American president as they await indications the the administration will follow through on pro-growth campaign promises.

Big moment for markets 

Trump is expected to act on promises to upend trade deals in Asia and North America, while efforts to boost government spending at home remain another top priority.

The inauguration is “definitely a big moment for the markets,” said Neil Mellor, a London-based currency strategist at Bank of New York Mellon Corp. “We could get more clues about what Trump is planning today. If he ramps up the rhetoric the market will be concerned about building long dollar positions.”

Here are the main market moves on Friday, January 20, 2017:

Stocks

• The S&P 500 Index advanced 0.5 percent to 2,274.63 at 10:06 a.m. in New York. The index is flat for the week and virtually unchanged since Dec. 13.

• Banks have led declines in the holiday-shortened period, as Goldman Sachs Group Inc. slid more than 5 percent, paring a rally that took it more than 30 percent higher following Trump’s election.

• The Stoxx Europe 600 Index traded little changed as declines in miners offset gains in energy shares.

Currencies

• The Bloomberg Dollar Spot Index was unchanged after falling as much as 0.3 percent. The gauge is clinging to its first weekly advance since the period ending Dec. 23.

• The pound dropped 0.5 percent to $1.2285 and the euro retreated 0.2 percent to $1.0648.

Commodities

• West Texas Intermediate crude climbed for the second day, gaining 1.5 percent to $52.13 a barrel and narrowing a weekly loss to 0.5 percent.

• Gold retreated 0.2 percent to 1,202.55 an ounce. The metal has advanced 0.4 percent this week, touching the highest level since November on Tuesday.

Bonds

•             The yield on 10-year Treasuries was little changed after briefly touching 2.5 percent, the highest level since Jan. 3.

•             Government bonds retreated across the European Union. Yields on Irish 10-year notes climbed 4 basis points to 0.99 percent

source : gulfnews