Trump’s comments bump S&P 500 to new high

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Bank of Japan raises rates
The Bank of Japan on Friday rates increased by 25 basis points to 0.5%the highest level since 2008. After the decision, the Japanese yen strengthened to 155.3 against the US dollar by 1:30 pm Singapore time. Earlier Friday, Tokyo released a report which he showed Core inflation in the country reached a 16-month high of 3% in December on an annual basis, in line with expectations from a Reuters poll.

Record close for S&P
U S&P 500 closed at a cool high on Thursday as investors liked what they heard from Trump regarding tax cuts. All major US benchmarks are on a four-day winning streak. Wall Street’s positive sentiment lifted Asian markets on Friday. Hong Kong Hang Seng Index jumped more than 2%, but Japan Nikkei 225 down after the tax hike.

Trump’s Davos address
The President of the United States, Donald Trump, addressed World Economic Forum in Davos, Switzerland, virtually Thursday. In his speech, Trump said that “demand that interest rates drop immediately” ask Saudi Arabia and OPEC”reduce the cost of oil“, and called the European Union trade relationship with the United States very unfair.

Trump said he likes Xi “a lot.”
Trump said Thursday that he likes Chinese President Xi Jinping “a lot“according to the White House’s reading of his virtual interview in Davos. He floated the idea of ​​working with Xi to end the war in Ukraine. Separately, a survey by the American Chamber of Commerce in China released Thursday found that the 30% of US companies in China will accelerate their they plan to shift manufacturing or supplythe highest proportion by 2022.

Crypto Order Signed by Trump
Cryptocurrency advocates got another boost from Trump on Thursday after he signed a executive order to promote the advancement of cryptocurrency in the United States Most of the order focuses on establishing the technology and rules around crypto. One of the critical pieces is the creation of a working group to consider a national digital asset stockpile.

Boeing projects a huge loss
Boeing he said Thursday that is likely lost about $4 billion in the fourth quarteror a loss of $5.46 per share. Revenues are expected to come in at $15.2 billion, lower than LSEG’s estimates. Boeing has not published an annual profit since 2018. The aircraft manufacturer started 2024 with a mid-air incident and ended with a crippling labor strike and dismissals.

[PRO] Fink goes against pessimism in Europe
There is severe “pessimism” about the future of Europe in Davos, according to Larry Fink, CEO of BlackRock. However, Fink told CNBC on Thursday that things could be “close to a bottom” — and he explains because he takes that view.

The price of crude US and the global benchmark Brent left Trump saying that he is “asking Saudi Arabia and OPEC to lower the cost of oil.”

And after Trump said he “demands that interest rates come down immediately,” the 2-year Treasury yield, which tends to track short-term interest rates, fell, while stocks rose.

In fact, the S&P 500 added 0.53% to close at a record high of 6,118.71. Its last all-time closing high was 6,090.27 in early December. U Dow Jones Industrial Average increased 0.92% and the Nasdaq Compositeand gained 0.22%. It was the fourth consecutive session in the green for all three indices.

But unlike numbers—which are made up (most of the time, anyway)—words can be capricious.

“Trump’s speech in Davos contained some apparently positive lines (he asked OPEC to lower oil prices, asked central banks for lower interest rates, and reiterated previous promises to cut rates and regulation) but there was very little either incremental or in their control,” Adam. Crisafulli, founder of Vital Knowledge, said in a statement.

This does not mean that Trump does not carry his statements. It is not prudent, however, to contribute to comments that are not based on concrete actions.

On the other hand, there are many words that have the weight of politics behind them and should be taken seriously by investors.

The US Federal Reserve meets next week. While the chance of a rate cut then is close to zero, according to him CMEGroup’s FedWatch toolwhat President Jerome Powell says in his press conference is “likely to cause market volatility,” according to James Demmert, chief investment officer of Main Street Research.

Learning what to listen for, therefore, could be as important for investors as deciphering the numbers.

— CNBC’s Alex Harring and Jesse Pound contributed to this report.