The Dow Jones Industrial Average, S&P 500 and Nasdaq all finished at new highs on Friday, Jan. 26, despite a U.S. economy that showed steady but slowing growth in the fourth quarter.
The Commerce Department on Friday said the U.S. economy grew at an annual pace of 2.6% in the fourth quarter, below estimates. GDP failed to reach the 3% mark for the third quarter in a row.
For 2017, the economy grew 2.3%, higher than 1.5% growth in 2016.
Donald Trump, in an interview, said the U.S. economy could grow "much higher" than 3% and that cutting regulations has allowed as much as $4 trillion in new overseas investment.
Trump told CEOs and world leaders gathered in Davos, Switzerland, that the U.S. was "open for business and we are competitive once again."
Trump, in his keynote address Friday at the World Economic Forum, said the U.S. supported free trade "but it needs to be fair and it needs to be reciprocal."
"The United States will no longer turn a blind eye to unfair economic practice including massive intellectual property theft, industrial subsidies and pervasive state-led economic planning," he added.
The Dow was up by 223 points, or 0.85%, to close at 26,616. The S&P 500 jumped 1.18% and the Nasdaq rose 1.28%
Trump's speech followed a turbulent week for U.S. economic policy that included tariffs on imported goods from China and South Korea, threats to leave the North American Free Trade Agreement and the first apparent reversal of the country's "strong dollar" policy in at least a generation.
In remarks released before his speech at Davos from an interview with CNBC television, Trump also insisted that no one should be "talking down" the U.S. dollar and argued that its value should be based on the strength of the broader economy.
"I'll tell you where I stand, which ultimately is very important," he said. "No. 1, I don't like talking about it because, frankly, nobody should be talking about it ... it should be what it is and it should also be based on the strength of the country."
The dollar index, a measure of the greenback's strength against a basket of six global currencies, slipped 0.5%% to 89.00 despite Trump's attempt to support the currency.
Honeywell International Inc. (HON) - Get Report said Friday adjusted earnings in the fourth quarter were $1.85 a share, topping Wall Street forecasts by 1 cent. The company also raised its 2018 earnings outlook. The stock rose nearly 2%.
Intel Corp. (INTC) - Get Report jumped 10.5% on Friday after the giant chipmaker beat both fourth-quarter earnings and revenue expectations and issued strong full-year guidance for 2018. Intel also announced it was increasing its dividend by 10% to $1.20 a share.
Wynn Resorts Ltd. (WYNN) - Get Report fell 10% after The Wall Street Journal ran an expose that detailed reports from dozens of women who described a pattern of sexual abuse perpetrated by Steve Wynn, the man behind the Wynn Resorts Ltd. (WYNN) - Get Report casino empire.
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