Stocks close higher, dollar steady before Trump speech

Mon Feb 27, 2017 4:37pm EST
 
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By Sinead Carew

NEW YORK (Reuters) - Wall Street closed slightly higher on Monday and U.S. Treasury yields rose on hopes for rising rates and expectations for an infrastructure spending announcement in U.S. President Donald Trump's speech Tuesday night.

Oil futures were a mixed bag as the prospect of rising U.S. production offset reports of compliance with an OPEC production cut agreement.

While many investors were hoping Trump would unveil details of pro-business policies including tax reform, cash repatriation or infrastructure spending during his address to Congress Tuesday night, others were not ready to make new bets as they worried that the speech would disappoint.

Trump said earlier in the day that he would issue a big statement on infrastructure during his speech on Tuesday, but also said tax reform details would not be revealed until after the administration's proposal on healthcare.

"Investors want something concrete on corporate taxes or repatriation. They're more focused on that than the affordable care act, but the first focus of the administration is ACA," said Jeffrey Saut, chief investment strategist at Raymond James Financial in St. Petersburg, Florida.

The Dow Jones Industrial Average .DJI rose 15.68 points, or 0.08 percent, to 20,837.44, the S&P 500 .SPX gained 2.39 points, or 0.10 percent, to 2,369.73 and the Nasdaq Composite .IXIC added 16.59 points, or 0.28 percent, to 5,861.90.

The Dow Jones Industrial Average scaled its 12th consecutive record high, its longest such run since 1987.

Benchmark 10-year notes US10YT=RR were last down 13/32 in price to yield 2.363 percent, from a yield of 2.317 percent late Friday. Dallas Fed President Robert Kaplan said the U.S. central bank might need to raise interest rates in the near future to avoid falling behind the curve on inflation.   Continued...

 
Traders work on the trading floor at the opening of the markets at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., February 27, 2017. REUTERS/Andrew Kelly