* Trump says to make "phenomenal" tax announcement in few
* Financial sector set to snap three-day losing streak
* Viacom, Kellogg gain after results; Coca-Cola slumps
* Indexes up: Dow 0.67 pct, S&P 500 0.64 pct, Nasdaq 0.66
(Updates to late afternoon)
By Lewis Krauskopf
Feb 9 Wall Street's three main indexes hit
record highs on Thursday after President Donald Trump said he
would make a major tax announcement in a few weeks.
"Lowering the overall tax burden on American business is big
league," Trump said during a White House meeting with airline
U.S. stocks have rallied since Trump's Nov. 8 election amid
expectations he will not only usher in lower corporate taxes,
but also reduced regulations and increased infrastructure
spending. The rally had stagnated in recent days as investors
seek details about Trump's economic policy agenda.
Financials, which have soared since the election,
were the best-performing group, up 1.3 percent after three
sessions of declines, while energy shares gained 0.9
Those sectors stand to benefit should lower taxes spur
economic activity as interest rates and the demand for energy
rise, said Bruce McCain, chief investment strategist at Key
Private Bank, in Cleveland.
"Given the groups that responded and the enthusiasms within
the market, it seems to be the tax comments that lit off the
rally today," said Bruce McCain, chief investment strategist at
Key Private Bank, in Cleveland.
But, McCain said, "when you get to these levels of market
sentiment, usually the returns are much more modest and you're
much more subject to a pullback."
The Dow Jones Industrial Average rose 134.14 points,
or 0.67 percent, to 20,188.48, the S&P 500 gained 14.72
points, or 0.64 percent, to 2,309.39 and the Nasdaq Composite
added 37.58 points, or 0.66 percent, to 5,720.03.
All three indexes hit new intraday all-time highs.
The utilities sector, which is considered a
defensive bet, fell 0.9 percent, the worst-performing group.
The focus on Washington comes with U.S. companies in the
midst of their corporate reporting season.
With about 70 percent of the S&P 500 having reported
results, fourth-quarter earnings are on track to have climbed
8.5 percent, which would be the best performance since the third
quarter of 2014, according to Thomson Reuters I/B/E/S.
Shares of Viacom, Kellogg and Prudential
all gained after their respective quarterly
Coca-Cola forecast a surprise drop in full-year
profit. Its shares fell 2.4 and were the biggest drag on the Dow
and the S&P.
Twitter tumbled 11.9 percent after the social
network reported its slowest quarterly revenue growth since
going public in 2013.
Airline stocks rose, with JetBlue, Delta
and American Airlines up more than 2 percent, after
Trump's meeting with airline executives.
Advancing issues outnumbered declining ones on the NYSE by a
2.11-to-1 ratio; on Nasdaq, a 2.80-to-1 ratio favored advancers.
The S&P 500 posted 39 new 52-week highs and 1 new lows; the
Nasdaq Composite recorded 124 new highs and 19 new lows.
(additional reporting by Yashaswini Swamynathan in Bengaluru;
Editing by Anil D'Silva and Nick Zieminski)