12th straight record close for Dow; Trump’s speech crucial

Banks were the biggest gainers amid heightened expectations that an improving economy will lead to higher interest rates.

The Dow gained 15.68 (+0.08 percent) to finish at 20,837.44.

The Dow Jones added 303 points, or 1.5 percent, to climb above the 21,000 threshold for first time in history, and closed at 21,115 points.

-The S&P 500 index rose 0.1 percent to 2,369.73 at 4 p.m.in NY, after capping a fifth weekly gain.

USA shares have been riding high since President Trump’s election victory.

While some investors had hoped for specifics on how the administration would pay for its promises, investors who had kept money off the table ahead of the speech were relieved by the President’s more measured than expected tone.

Trump reiterated his economic plans to increase infrastructure spending, lower taxes and promote deregulation.

Fed-fund futures, used by investors to place bets on central bank policy, showed a roughly 66 percent chance of a rate rise in March, up from 35 percent Tuesday, according to CME Group. On the Nasdaq, 2,108 issues rose and 624 fell. PUMPED: Big 5 Sporting Goods gained 14.1 percent after the athletic gear retailer delivered strong quarterly results.

The rise in the U.S. dollar against the yen also boosted Japanese shares because it’ll make the country’s exports more competitive on the American market. The stock was lost $8.52 to $58.39. ETrade Financial dropped 6.3 percent and Charles Schwab fell 3.3 percent. The stock slid 42 cents to $11.51. But for now, Wall Street is clearly happy. Investors have bought into postelection dips and the S&P 500 hasn’t declined 1 percent or more in a day since October. However, the UK’s FTSE 100 Index added 0.1 percent, while Germany’s DAX Index rose 0.2 percent.

In this bullish environment, Snap Inc will price its initial public offering after the U.S. stock market closes.

Despite ending Tuesday’s session slightly lower, the major averages notched substantial monthly gains and continued to sit just below all-time highs.

OIL: Benchmark U.S. crude was up 29 cents, or 0.5%, at $54.30 a barrel in NY. New York Fed President William Dudley also said the case for hiking rates “has become a lot more compelling”. 2-year Treasury yields were at 1.2961 after Trump’s speech, after touching 1.304, their highest level since December 15, earlier in the session. The dollar fell to 112.37 yen from 112.80.

CURRENCIES: The euro strengthened to $1.0590 from $1.0589 on Friday. Copper rose 2 cents to $2.70 a pound.