The major market averages looked as though they were ready to begin their next leg higher on Tuesday, after news from the Whitehouse suggested the president was taking steps to open the way for new infrastructure projects. President Trump began the day on Tuesday signing an executive action that revives the two oil pipeline projects, Keystone XL and Dakota Access, that were put on hold by the prior administration. The President said he intended to streamline the permit process for infrastructure projects, and that pipelines built in the U.S. were to be built using U.S. produced steel.
Later, during a meeting with executives of U.S. auto manufacturers, President Trump said he would make it easier to build manufacturing plants here in the U.S. by expediting environment reviews for manufacturers. Ford’s CEO Mark Fields said he was “very encouraged by the President and the economic policies that he is forwarding” to include the “withdrawal from TPP”, and that as an industry they were “excited to work with this administration to create a renaissance in American manufacturing.”
With all the talk about building going on, Wall Street took its cues from the Whitehouse lifting the Dow Jones U.S. Basic Materials index higher by 2.87 percent making it the top performing sector on Tuesday. Not surprisingly, the second top performing sector was the Dow Jones U.S. Industrial index up 1.19 percent on the day.
All in all, it was a solid performance among the major market averages with the Standard and Poor’s 500 rising 0.66 percent, to close at a new all-time high, and the Nasdaq Composite gaining 0.86 percent. Though still off its highs, the Russell 2000 small company index advanced 1.59 percent Tuesday, and indication that the buyers are still enthusiastic about this market.
President Trump’s meeting schedule with both business and labor leaders the past couple of days appears to be created a change of tenor in the stock market. For now, investors look as if they are trying to get ahead of Trump’s pro-growth agenda, which can be seen by this week’s top performing sectors. In the No. 1 spot for the week is the Dow Jones U.S. Basic Materials index up 3.89 percent over the past five trading days, followed by the Dow Jones U.S. Consumer Goods index higher by 1.93 percent over the same period.