Investing.com – Wall Street continued to drift higher on Friday with all three major indices hitting new record highs as the rally continued in a day light on references.
At 10:47AM ET (15:47GMT), the Dow Jones gained 89 points, or 0.44%, the S&P 500 rose 7 points, or 0.30%, while the Nasdaq Composite traded up 17 points, or 0.29%.
After closing at record highs the prior session as Trump hinted that a “phenomenal” tax cut plan was going to be announced in “two or three weeks”, stocks continued to mark new records while waiting for any details on trade deals between the U.S. and Japan as the President was set to meet with Japanese Prime Minister (PM) Shinzo Abe at 12:00PM ET (17:00GMT).
Earlier it was revealed that Trump had changed tack and agreed to honor the "one China" policy during a phone call with China's leader Xi Jinping, a major diplomatic boost for Beijing which brooks no criticism of its claim to self-ruled Taiwan and suggested an easing of tensions between the world’s two major economies.
Trump angered Beijing in December by talking to the president of Taiwan and saying the United States did not have to stick to the policy, under which Washington acknowledges the Chinese position that there is only one China and Taiwan is part of it.
On the date front, the preliminary University of Michigan February consumer sentiment index fell more than expected, though the survey’s chief economist Richard Curtin commented that “confidence remains quite favorable, with only five higher readings in the past decade."
Additionally, a release from the U.S. Bureau of Labor Statistics showed that import prices increased by a seasonally adjusted 0.4% in January, more than forecasts for a 0.2% advance, while the 0.1% uptick in export prices met expectations.
In big moves on earnings, Skechers USA (NYSE:SKX) skyrocketed 22% after its fourth-quarter revenue beat expectations.
Activision Blizzard (NASDAQ:ATVI) also soared more than 16% after the videogame maker reported better-than-expected quarterly revenue and a $1 billion share buyback program.
In corporate movements, Walt Disney Company (NYSE:DIS) increased its stake in Euro Disney to 85.7%, from 76.7% by buying 90% of Saudi Arabia’s Kingdom Holding stake in the firm. The blue-chip entertainment giant made the purchase with its own stock.
Mead Johnson Nutrition Company (NYSE:MJN) saw shares jump 5% after Reckitt Benckiser Group (LON:RB) penned a $16.6 billion deal to buy the infant formula maker.
Meanwhile, oil prices moved higher on Friday as the International Energy Agency said that OPEC compliance with the agreement to reduce production had reached a record 90%.
Sources from Reuters said that the cartel showed an even higher compliance of 92%.
Still, market players eagerly watched for signs of how other producers were responding to the reduction by ramping up their own production and will pay close attention to Baker Hughes’ data on U.S. drilling out later on Friday.
The oilfield services provider said last week that the number of rigs drilling for oil in the U.S. had increased by 17, the 13th gain in 14 weeks.
That brought the total count to 583, the most since November 2015.
Venezuela's oil and foreign ministers will visit fellow OPEC member Algeria this weekend for consultations on dealing with oil price instability, Algeria's foreign ministry said in a statement.
U.S. crude futures gained 1.79% to $53.95 by 10:49AM ET (15:49GMT), while Brent oil traded up 1.87% to $56.87.