U.S. Stocks Edge Higher in Lackluster Trade Ahead of Trump Speech

U.S. equity markets inched higher in a lackluster trade on Monday as investors prepared for a key speech from President Donald Trump on Tuesday night. Speaking before a joint Congress session, Trump is expected to deliver more details on his economic policy plans.

Investors will be looking for clues about the administration’s plans for tax reform and deregulation. The details of his speech may reveal if he is ready to focus on growth or if he will continue to deliver his populist message. Since most of his campaign promises have been delivered, investors expect Trump to tackle a few of his tougher ones.

In the cash market, the S&P 500 Index was trading about 0.10% higher, the Dow Jones Industrial Average was even weaker, coming in just 0.08% better, while the NASDAQ Composite outperformed with a 0.27% gain.

The stock market has posted record highs in 2017, first being driven by the prospect for higher interest rates. It then moved into an earnings-driven bull market. Now it seems to be ready for a boost to take it to the next level and investors are hoping Trump will be the one to deliver on his promises to aggressive spend, cut taxes and deregulate.

Economic News

Durable goods orders rose 1.8 percent in January, slightly above the expected 1.7 percent increase. Pending home sales, meanwhile dropped 2.8 percent in January to their lowest level in a year.

Additionally, Dallas Federal Reserve President Robert Kaplan, a voting member on the central bank’s policymaking committee, reiterated his view that a rate hike could come sooner rather than later.