Stocks rose on Tuesday as investors eagerly awaited President Donald Trump's latest State of the Union address while the corporate earnings season rolled on.
The Dow Jones Industrial Average closed 172.15 points higher at 25,411.52, led by Apple and Intel. The Nasdaq Composite gained 0.7 percent to close at 7,402.08. The S&P 500 climbed 0.47 percent to 2,737.70 on the back of gains from the tech, communications services and consumer discretionary sectors.
Trump's address is scheduled to start at 9 p.m. ET. The speech comes more than a week after the longest government shutdown in U.S. history came to an end. Investors should be looking for clues on a number of matters, including U.S.-China trade talks.
"We expect an optimistic tone on President Trump's desire to strike a deal, but we remain cautious that these headlines are likely to whip around during any verification or enforcement phase," Ed Mills, public policy analyst at Raymond James, wrote in a note to clients.
The president could also make comments on drug pricing during the speech, as well as a possible infrastructure bill. Some stocks to watch heading into the speech include Fluor Corp, Jacobs Engineering, chipmaker Qorvo and Wynn Resorts, according to Strategas Research Partners.
But while Trump could strike a bipartisan approach on both of those fronts — which would be bullish for the market — the stalemate over the U.S.-Mexico border wall with Democrats could undercut that.
Isaac Boltansky, director of policy research at Compass Point, said Trump will likely dedicate a good chunk of his speech to his wall proposal. "We believe there will be an outsized focus on the border wall and the president could use this forum to build his case for unilateral administrative action on the wall (e.g., national emergency declaration)," Boltansky wrote in a note.