ETFC E TRADE Financial Corporation

By Akane Otani and Jon Sindreu 

U.S. stocks rose to fresh records Thursday after President Donald Trump signaled he would advance campaign promises to lower taxes.

The stock rally had faltered in recent weeks, with many investors saying there were few reasons for stocks trading near all-time highs to climb further in the absence of clarity on key plans, including fiscal stimulus and tax cuts.

On Thursday, investors received some reassurance that the administration would follow through on policies that could boost corporate earnings.

Mr. Trump said at a White House meeting with airline executives that he would make an announcement that would be "phenomenal in terms of tax" within the next three weeks.

Upbeat earnings also lifted stocks.

The Dow Jones Industrial Average rose 118.06 points, or 0.6%, to 20172.40. The S&P 500 added 13.20 points, or 0.6%, to 2307.87, and the Nasdaq Composite gained 32.73 points, or 0.6%, to 5715.18 -- records for all three indexes.

Apple climbed closer to its high. The company's shares rose 95 cents, or 0.7%, to $132.42, near their closing record of $133 hit on Feb. 23, 2015. Last month, the company reported snapping three consecutive quarters of falling revenue thanks to strong demand for the iPhone 7.

But financials were the day's winners -- a hallmark of the postelection rally. The sector rose 1.4% and led gains in the S&P 500.

"Stocks are ripping because of President Trump's comments," said R.J. Grant, director of equity trading at KBW Inc., who said he noticed a pickup in the S&P 500 and financial shares "almost exactly when those comments hit the tape."

The dollar, which also rallied after Election Day as investors bet on faster economic growth under Mr. Trump, increased. The WSJ Dollar Index, which measures the dollar against a basket of 16 currencies, increased 0.5%.

Mr. Trump told the airline executives on Thursday that he would reduce regulations and fund infrastructure upgrades, which he said would help their companies hire more workers.

Airline stocks rallied. JetBlue Airways gained 68 cents, or 3.5%, to 19.97, American Airlines Group rose 1.34, or 3%, to 46.30 and Delta Air Lines advanced 1.23, or 2.6%, to 49.33.

Meanwhile, government bonds and their stock-market proxies pulled back.

The yield on the 10-year U.S. Treasury note increased to 2.397%, from 2.349% Wednesday -- after three days of falling yields. Yields rise as bond prices fall.

Shares of utilities companies in the S&P 500 fell 0.8% and were the worst performers in the broad index.

Stocks generally have risen since Election Day, as investors bet Mr. Trump would roll back regulation and cut taxes. Still, some analysts say that in the long term, data on economic growth and company profitability will determine how stocks move.

"It's been all Trump, all the time, but over time, economic growth and earnings will be the driver of stock prices," said Michael Arone, chief investment strategist at State Street Global Advisors.

Kellogg climbed 2.95, or 4%, to 76.44 after the company posted a decline in revenue for the fourth quarter but said adjusted profit topped estimates.

Dunkin' Brands Group rose 2.16, or 4.2%, to 54.13 after the company swung to a profit for the fourth quarter, helped by increased royalty income and franchise fees.

However, Twitter shares fell 2.31, or 12%, to 16.41 after the company reported its 10th consecutive quarter of slowing revenue growth.

U.S. crude oil for March delivery increased 1.3% to $53 a barrel, bolstered by data showing better-than-expected demand for gasoline in the U.S. Energy shares in the S&P 500 rose 0.9%.

Elsewhere, the Stoxx Europe 600 gained 0.8%. In Asia on Thursday, the Shanghai Composite Index rose 0.5% and Hong Kong's Hang Seng Index added 0.2%, while Japan's Nikkei Stock Average shed 0.5%.

Write to Akane Otani at akane.otani@wsj.com and Jon Sindreu at jon.sindreu@wsj.com

(END) Dow Jones Newswires

February 10, 2017 02:48 ET (07:48 GMT)

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