US: Stocks rise again ahead of Trump address

[NEW YORK] Wall Street stocks advanced again on Tuesday with technology shares outperforming ahead of President Donald Trump's annual State of the Union address.

The Dow Jones Industrial Average rose gained 0.7 per cent to 25,411.52.

The broad-based S&P 500 climbed 0.5 per cent to 2,737.70, while the tech-rich Nasdaq Composite Index won 0.7 per cent to 7,402.08.

US stocks continue to rally on optimism that Federal Reserve monetary policy will be benign, and the United States and China will reach a trade deal.

The S&P 500 has risen more than 16 per cent since December 24.

In his address on Tuesday night, Mr Trump is expected to emphasise infrastructure spending and argue the need for a wall along the Mexican border after a dispute with congressional Democrats shut the government for more than a month.

US services sector growth slowed modestly in January due to some impact from the government shutdown, according to a report by the Institute for Supply Management

Large technology companies, including Apple, Amazon and Netflix, climbed more than one per cent.

Boeing was another big winner, jumping 3.3 per cent after confirming it would lift production of its wide-body 787 aircraft to 14 per month from 12.

Other big winners included Estee Lauder, which surged 11.6 per cent and Ralph Lauren, which won 8.4 per cent. Both companies reported better-than-expected quarterly earnings.

But Gilead Sciences dropped 3.4 per cent after the drug company reported quarterly earnings of US$1.44 per share, below analyst expectations for US$1.71.

AFP