US stocks chalked up fresh record closing highs on Tuesday, reminiscent of the Trump-inspired rallies seen in late 2016.
The S&P 500 and Nasdaq Composite struck fresh closing highs, with the market bellwether up 0.7% to 2280. Earlier, the S&P scaled a fresh intraday record high of 2,284.63.
Meanwhile, the tech-heavy Nasdaq closed up 0.9% at 5,600, having earlier marked an intraday record high of 5,606.53.
Just as on the UK bourse, miners were Tuesday’s standout performers on Wall Street too, with the S&P 500 mining group up 3.4% on the back of gains for industrial metals, like copper. Financial, technology, industrial and energy shares also climbed.
Copper had a strong day as global copper prices jumped by 3% on Tuesday and sped towards $6,000 a tonne.
Read: Copper advances 3% on Chile strike risk
Conversely, telecommunications were the biggest laggards, driven by a nearly 5% fall in Verizon (NYSE:VZ) shares prompted by disappointing quarterly results. Verizon closed down 4.4% at $50.12.
The rally in equities spurred by the November election of Donald Trump as US president took a breather at the start of the year. But it has picked up steam once again as investors look to see if the business mogul will make good on his campaign promises.
On Tuesday, he made clear that he will support easing regulations, indicating that environmental protections have become “out of control”. He also signalled the administration’s support for the Keystone XL pipeline, which was rejected by Barack Obama’s administration.
The top gainer on the S&P 500 was miner Freeport-Mcmoran Inc (NYSE:FCX) up 8.3% to $17.02.
The S&P Midcap 400 closed up with one of its best percentage gains in 12 months, an advance of 1.5% to 1697 and led by steelmaker Allegheny Technologies Inc (NYSE:ATI) u 31.1% to $22.28 after reporting an adjusted loss of 4 cents per share in fourth-quarter 2016, narrower than the Zacks Consensus Estimate of a loss of 11 cents.
The S&P Smallcap 600 added 1.6% to 838, also one of its best daily percentage gains. It was led higher by optical instruments maker I I V I Inc (NASDAQ:IIVI) up 14.8% to $36.05 after it reported its second-quarter earnings and achieved record bookings and revenues.
Pre-Open
US stocks are heading for a flat-to-firm opening on Tuesday, in a repeat of the previous session’s start as the record high rallies before US President Donald Trump’s inauguration fail to extend.
The three majors, S&P 500, Dow Jones Industrial Average and Nasdaq Composite, are all set for flat-to-firmer starts this session.
The early part of the day may be dominated by any despatches from a breakfast meeting Trump will have with the CEOs of the big three US carmakers General Motors (NYSE:GM), Ford (NYSE:F) and Fiat Chrysler (NYSE:FCAU). While GM shares were firm pre-market the only real gainer – and by a yard – was Fiat Chrysler whose shares were up 4.2% at $10.71 pre-market.
Executives from Toyota (NYSE:TM), down 1.3% to $116.70 pre-market, Honda (NYSE:HMC) down 1.4% to $29.94, Nissan (OTCMKTS:NSANF) and Hyundai, which all have US plants as well as plants in Mexico, weren't invited to this meeting, according to spokespeople from those companies.
Trump has been vocal about his plans to penalize companies -- specifically automakers -- that make products in Mexico and then sell them in the US.
The pound has taken a small dip after the U.K. Supreme Court ruled on Brexit. Initially it rose against the dollar but after the court ruled that the U.K. government must hold a vote in parliament before beginning the process of leaving the European Union, forex traders sent sterling the other way as markets also absorbed that devolved parliaments in Scotland, Wales and Northern Ireland won’t have a veto.
The government had originally planned to trigger Brexit without a parliamentary vote by the end of March. The government has vowed to being a Brexit bill before Parliament within days.
In stocks a torrent of earnings results.
Lockheed Martin (NYSE:LMT), the US defence contractor that has come under pressure from Donald Trump over the cost of it F-35 fighter jets, reported better than expected fourth quarter results, but issued a downbeat full-year outlook. Lockheed shares were down 3.6% at $248.10.
Verizon (NYSE:VZ), the largest US telecoms group by customers, posted mixed fourth quarter results, sending its stock 2.7 per cent lower in pre-market trading.
The New York-based company reported adjusted earnings of 86 cents per share on $32.3bn in revenue, compared to analysts forecasts for 89 cents a share on $32.2bn in revenue. Shares were down 3.6% at $50.55. The disappointing results also draw questions about its planned merger with troubled internet portal Yahoo! Inc (NASDAQ:YHOO)
Johnson & Johnson (NYSEJNJ), the world’s largest healthcare company, said it was exploring a sale of its diabetes care business as it announced fourth quarter earnings that were broadly in line with Wall Street estimates.
The group said it would evaluate “potential strategic options” for its diabetes brands, LifeScan, Animas and Calibra, which make devices including glucose monitors and insulin pumps. Shares were down 1.5% at $112.25.
DuPont (NYSE:DD), the chemicals group, has reported underlying earnings per share up 89 per cent at 51 cents for the fourth quarter of 2016, well above analysts’ expectations, as it cut costs in preparation for the merger with Dow Chemical, the closing date for which has once again been pushed back. Shares were down 0.7% at $72.28.
China’s online retail mart Alibaba (NYSE:BABA) blew through analysts’ earnings estimates in its third quarter, lifting revenues 54 per cent to Rmb53.25bn (7.7bn) in the last three months of the year and raising its forecasts for full-year revenue growth. ADRs were up 4.5% at $102.85 pre-market.