Stocks Rally As Trump Backs Keystone Pipeline -- U.S. Commentary

(RTTNews) - Stocks rose Tuesday, with the S&P 500 and Nasdaq Composite posting record closing highs despite mixed U.S. economic data.

New stats showed that existing home sales fell by more than economists had expected in December, hurt by the most constrained stockpile of available homes this century.

The S&P 500 was up 0.7% at record 2,280, Nasdaq Composite closed at an all-time closing high of 5,600, up 0.9%. The Dow Jones Industrial Average rose 112.86 points, or 0.6%, to finish at 19,912.71, led by DuPont.

In a boon to the energy industry, President D. Trump signed executive orders to revive the controversial Keystone XL and Dakota pipeline projects.

Yahoo reported a profit for the fourth quarter that trumped Wall Street estimates. The company also said it expects a delay in completion of the deal with Verizon Communications Inc.

Yahoo said now expects to close the sale of its core internet business to Verizon in the second quarter instead of the first quarter as earlier expected. The company cited "given work required to meet closing conditions" as the reason for the delay. Shares were up fractionally today.

Johnson & Johnson reported solid fourth-quarter results, with adjusted earnings above market estimates. However, sales missed expectations, despite growth from last year. JNJ shares eased 1.9 percent.

Apple stock was downgraded at Barclays due to lack of "needle movers." Its 12-month price target was reduced to $117 from $119. Shares were flat today.

The National Association of Realtors said existing home sales fell 2.8 percent in December to reach an annual pace of 5.49 million units. November's pace was revised slightly higher, to 5.65 million units.

Economists had expected the measure to moderate a bit after reaching a 9-year high in November. The consensus estimate called for sales to decline to an annual rate of 5.55 million units.

Inventories shrunk again in December, the third consecutive month of contraction. The NAR reported 1.65 million homes on the market at the end of December. This was down 10.8 percent from the previous month and marked the lowest inventory level since 1999.