Stocks posted strong gains and traded in record territory Friday as equities extended gains following Donald Trump's promise for U.S. tax reform.
The S&P 500 rose 0.39%, the Dow Jones Industrial Average increased 0.51%, and the Nasdaq gained 0.37%. All three indexes hit new closing records on Thursday after the president promised he would soon cut taxes for businesses.
All S&P 500 sectors were in the green. The energy and materials sectors led markets higher. Anadarko Petroleum (APC) , Exxon Mobil (XOM - Get Report) and Schlumberger (SLB - Get Report) posted gains of about 1% or more. Nike (NKE - Get Report) and Caterpillar (CAT - Get Report) were the leading gainers on the Dow.
The president on Thursday, in a meeting with airline and airport executives, said that lowering the "overall tax burden on American business is big league. That's coming along very well. He added, "We're way ahead of schedule, I believe. And we're going to announce something I would say over the next two or three weeks that will be phenomenal in terms of tax."
Sam Stovall, CFRA's chief investment strategist, said that Trump's positive comments about cutting taxes were giving markets additional reason to be optimistic.
"We are benefiting right now from the Trump hype, but my worry is that we are also starting to hear some sniping," Stovall said in a phone interview. "So the progression will go from hype to snipe to gripe, where we are excited about what he said he's going to do, and now we have people questioning whether that's going to happen."
"This first cut is certainly one of the deepest in the history of OPEC output cut initiatives," the IEA said, adding, "The oil market is very much in a wait-and-see mode."
The preliminary University of Michigan Consumer Sentiment Index for February fell to 95.7 from 98.5 in January and came in lower than economists expected.
U.S. import prices in January rose 0.4%, more than economists had expected. Export prices rose 0.1%.