By Anora Mahmudova and Victor Reklaitis, MarketWatch
CSX shares on track for best daily rise in 36 years
U.S. stocks edged lower Thursday as investors were cautious a
day before the inauguration of President-elect Trump, while
focusing on the Senate confirmation hearing of Steven Mnuchin for
the post of Treasury Secretary.
Analysts said that Wall Street is particularly interested in
Mnuchin's views on the dollar and tax issues.
Live blog and video of Steven Mnuchin's treasury secretary
confirmation hearing
(http://blogs.marketwatch.com/capitolreport/2017/01/19/live-blog-and-video-of-steven-mnuchins-treasury-secretary-confirmation-hearing/)
The Dow Jones Industrial Average was off by 30 points, or 0.2%
at 19,775. If it closes lower, it will mark the fifth drop in a row
for the blue-chip index. The equity gauge was dragged lower by a
1.6% decline in Exxon Mobil Corp. (XOM) and a 1% drop in Goldman
Sachs Group Inc.(GS)
The S&P 500 index fell 3 points, or 0.2% to 2,268, but not
far from its all-time high set two weeks ago. Real estate and
energy shares were leading losses, down about 0.7%.
Meanwhile, the Nasdaq Composite Index slipped 5 points, or 0.1%,
to 5,550, and was only 20 points shy of its record close.
"People are watching Mnuchin's confirmation hearing hoping for
any clarity about the dollar policy and other reforms, such as
taxes and regulation. What he says about the strength of the dollar
is important, since we have been getting conflicting messages from
President-elect Trump," said Ian Winer, director of equity trading
at Wedbush Securities.
Read:Trump is waving adios to longstanding 'strong dollar
policy'
(http://www.marketwatch.com/story/trump-is-waving-adios-to-the-longstanding-strong-dollar-policy-2017-01-17)
Stocks got a brief fillip after dovish comments from European
Central Bank President Mario Draghi and solid economic data.
However, small gains evaporated by late morning.
Draghi said there was "no convincing upward trend in underlying
inflation" adding the central bank was ready to expand its
quantitative-easing program if needed. His comments pushed the euro
and the yen lower against the dollar. Earlier, the European Central
Bank, as expected, left interest rates unchanged Thursday
(http://www.marketwatch.com/story/ecb-leaves-rates-unchanged-draghi-up-next-2017-01-19).
ECB news conference recap: Mario Draghi maintains dovish course
(http://blogs.marketwatch.com/thetell/2017/01/19/ecb-live-blog-mario-draghi-expected-to-maintain-dovish-course/)
In economic news, first-time weekly jobless claim fell by more
than expected, signaling continued strength in the labor market;
claims dropped by 15,000 to 234,000, highlighting the continued low
levels of layoffs. Separately, housing starts
(http://www.marketwatch.com/story/housing-starts-surge-in-december-to-second-highest-pace-of-recovery-2017-01-19)
ran at a seasonally adjusted annual pace of 1.23 million in
December, 11.3% higher than in November, but about flat compared
with the year-ago rate.
Meanwhile, the Philadelphia Fed manufacturing index unexpectedly
rose in January.
"The postelection enthusiasm continues in the sentiment figures.
All we need now is to see to what extent of increased business
activity this translates into," wrote Peter Boockvar, chief market
analyst at The Lindsey Group LLC in emailed notes.
Read: How the Trump rally stacks up to other postelection jumps
(http://www.marketwatch.com/story/how-the-trump-rally-stacks-up-to-other-postelection-stock-market-gains-2017-01-18)
Individual movers: Shares in Netflix Inc.(NFLX) rallied 5.4%
after the streaming video giant posted better-than-expected
quarterly results
(http://www.marketwatch.com/story/netflix-shares-pop-after-reporting-improved-earnings-subscriber-growth-2017-01-18)
late Wednesday. Netflix added 7.05 million subscribers in the
fourth quarter, roughly double the 3.57 million it gained in the
third quarter.
And read:My dad talked me out of buying Netflix, but he wasn't
wrong
(http://www.marketwatch.com/story/my-dad-talked-me-out-of-the-decades-best-investment-but-he-wasnt-wrong-2017-01-18)
CSX Corp.(CSX) soared 16% and was on track for its best daily
rise in 36 years, following news that railroad-industry veteran
Hunter Harrison is teaming with an activist investor
(http://www.marketwatch.com/story/canadian-pacific-ceo-hunter-harrison-steps-down-early-to-pursue-csx-2017-01-18)
in a bid to shake up CSX's management.
Another railroad operator, Union Pacific Corp.(UNP) shares
surged 5% after earnings. American Express Co.(AXP) and IBM(IBM)
are due to report their results after the close.
Shares of Navient Crop(NAVI) slumped 2.8% after the Consumer
Financial Protection Bureau filed a lawsuit against the nation's
largest student loan services, accusing the company of mistreating
borrowers.
Economic news: Federal Reserve Chairwoman Janet Yellen is due to
give a speech at 8 p.m. Eastern at Stanford University, covering
the economic outlook and monetary policy. On Wednesday, she said
she expects rates to rise a few times a year
(http://www.marketwatch.com/story/feds-yellen-says-she-expects-rates-to-rise-a-few-times-a-year-until-end-of-2019-2017-01-18)
until the end of 2019.
Check out:
Other markets: Crude-oil futures traded higher, as the
International Energy Agency warned OPEC's cuts could backfire
(http://www.marketwatch.com/story/opec-faces-headwinds-from-rivals-as-prices-rise-after-output-cut-iea-warns-2017-01-19)
as rivals step into the gap. European stocks were lower, while
Asian markets closed mixed
(http://www.marketwatch.com/story/asian-markets-hold-steady-nikkei-rises-despite-toshibas-dive-2017-01-18).
Gold futures traded lower. 10-year Treasury yields rose to 2.47%
and a key dollar index rose to 101.52.
(END) Dow Jones Newswires
January 19, 2017 11:45 ET (16:45 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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