US stocks rise as dollar fluctuates before Trump inauguration

The US dollar and Treasuries were little changed as attention turned to Washington for Donald Trump's inauguration as the nation's 45th president.
The US dollar and Treasuries were little changed as attention turned to Washington for Donald Trump's inauguration as the nation's 45th president.PHOTO: BLOOMBERG

WASHINGTON (BLOOMBERG) - US stocks rose as an advance in crude lifted energy producers. The US dollar and Treasuries were little changed as attention turned to Washington for Donald Trump's inauguration as the nation's 45th president.

The Dow Jones Industrial Average climbed back above 19,800 after erasing its gain for the year Thursday. The measure is about 200 points below its record as trades sparked by Trump's election have stalled in the past month.

General Electric and IBM slumped after reporting mixed earnings. Yields on U.S. Treasuries due in a decade hovered near highs set in late December, while the Bloomberg Dollar Spot Index clung to its first weekly advance in the past four. Gold rose above US$1,200 (S$1700) an ounce.

Investors are avoiding taking firm positions before Mr Trump is sworn in as the 45th American president as they await indications the the administration will follow through on pro-growth campaign promises. Mr Trump is expected to act on promises to upend trade deals in Asia and North America, while efforts to boost government spending at home remain another top priority.

The inauguration is "definitely a big moment for the markets," said Neil Mellor, a London-based currency strategist at Bank of New York Mellon Corp. "We could get more clues about what Trump is planning today. If he ramps up the rhetoric the market will be concerned about building long dollar positions."

The S&P 500 Index advanced 0.4 per cent to 2,272.94 at 9:33 a.m. (10.33 pm Singapore time) in New York. The index is down 0.5 per cent in the week and is virtually unchanged since Dec. 13.