Wall St ends higher as Trump becomes president

NEW YORK, Jan 20 (Reuters) - U.S. stocks closed higher on Friday in a modest but broad-based advance as Donald Trump was sworn in as U.S. President, marking the first time in more than 50 years that a new commander-in-chief has been welcomed by a rising equity market on his first day in office.

In his speech, Trump said U.S. policy will be to buy American and hire American, reiterating what he had said many times during this campaign for the White House.

Some investors said the comments reinforced concerns about potential protectionist trade policies. Indexes pared gains during his speech and ended off the highest levels of the day.

However, the rally in stocks since the Nov. 8 election had stalled in recent weeks as investors awaited clarity on his plans to boost the economy. All three major indexes ended with losses for the week.

"We're now trading off of reality rather than hope, and it's natural to be a bit more cautious when we make that transition," said Brad McMillan, chief investment officer for Commonwealth Financial in Waltham, Massachusetts.

22 PHOTOS
Scenes from Inauguration Day in Washington, D.C.
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Scenes from Inauguration Day in Washington, D.C.
guests fill hte West Front of the US Caaptol in Washington, DC, on January 20, 2017, before the swearing-in ceremony of US President-elect Donald Trump. / AFP / Mark RALSTON (Photo credit should read MARK RALSTON/AFP/Getty Images)
U.S. First Lady Michelle Obama, left, wipes the shoulder of U.S. President Barack Obama while standing outside of the White House ahead of the 58th presidential inauguration in Washington, D.C., U.S., on Friday, Jan. 20, 2017. Trump is the first president since the dawn of national polling in the late 1930s to enter office with the approval of fewer than half of Americans -- in his case only 40 percent. Photographer: TKTK/Pool via Bloomberg
WASHINGTON, DC - JANUARY 20: (L-R) Tiffany Trump, Donald Trump, Jr., Ivanka Trump, Vanessa Trump and Jared Kushner arrive on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States. (Photo by Drew Angerer/Getty Images)
WASHINGTON, DC - JANUARY 20: The presidential motorcade drives down Pennsylvania Ave towards the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States. (Photo by Joe Raedle/Getty Images)
WASHINGTON, DC - JANUARY 20: Former Democratic presidential nominee Hillary Clinton arrives on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States. (Photo by Chip Somodevilla/Getty Images)
WASHINGTON, DC - JANUARY 20: Former President George W. Bush and Laura Bush wave as they arrive on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States. (Photo by Alex Wong/Getty Images)
WASHINGTON, DC - JANUARY 20: Former President Jimmy Carter and wife Rosalynn Carter arrive on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States. (Photo by Joe Raedle/Getty Images)
US Chief Justice John Roberts (C-front) arrives with US justice William Rehnquist (L) on the platform of the US Capitol in Washington, DC, on January 20, 2017, before the swearing-in ceremony of US President-elect Donald Trump. / AFP / Mandel NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images)
WASHINGTON, DC - JANUARY 20: Former U.S. Preident George W. Bush and former first landy Laura Bush arrive at the swearing in ceremony at the United States Capitol January 20, 2017 in Washington, DC. Donald J. Trump will become the 45th President of the United States today. (Photo by Doug Mills - Pool/Getty Images)
US President Barack Obama and Vice President Joe Biden arrive for the Presidential Inauguration of Donald Trump at the US Capitol in Washington, DC, on January 20, 2017. / AFP / POOL / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
WASHINGTON, DC - JANUARY 20: President Elect Donald Trump arrives on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States. (Photo by Alex Wong/Getty Images)
WASHINGTON, DC - JANUARY 20: President Elect Donald Trump arrives on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States. (Photo by Scott Olson/Getty Images)
US President elect Donald Trump (R) and Vice President elect Mike Pence seat during the swearing-in ceremony on in front of the Capitol in Washington on January 20, 2017. / AFP / Timothy A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)
WASHINGTON, DC - JANUARY 20: U.S. Vice President Mike Pence takes the oath of office from Supreme Court Justice Clarence Thomas as his wife Karen Pence looks on, on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States. (Photo by Drew Angerer/Getty Images)
WASHINGTON, DC - JANUARY 20: President Elect Donald Trump shakes hands with Vice President Mike Pence on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States. (Photo by Alex Wong/Getty Images)
US President elect Donald Trump (C) salutes his daughter Ivanka and other family members during the swearing-in ceremony on in front of the Capitol in Washington on January 20, 2017. / AFP / Timothy A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)
US President-elect Donald Trump is sworn in as President on January 20, 2017 at the US Capitol in Washington, DC. / AFP / Mark RALSTON (Photo credit should read MARK RALSTON/AFP/Getty Images)
WASHINGTON, DC - JANUARY 20: U.S. President Donald Trump delivers his inaugural address on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States. (Photo by Drew Angerer/Getty Images)
Attendees listen as U.S. President Donald Trump speaks during the 58th presidential inauguration in Washington, D.C., U.S., on Friday, Jan. 20, 2017. Donald Trump will become the 45th president of the United States today, in a celebration of American unity for a country that is anything but unified. Photographer: Daniel Acker/Bloomberg via Getty Images
Attendees stand during the 58th presidential inauguration in Washington, D.C., U.S., on Friday, Jan. 20, 2017. Donald Trump will become the 45th president of the United States today, in a celebration of American unity for a country that is anything but unified. Photographer: Daniel Acker/Bloomberg via Getty Images
US President Donald Trump and First Lady Melania Trump(L) wait with former President Barack Obama(2nd-R) and Michelle obama before their departure from the US Capitol after Trump's inauguration ceremonies at the US Capitol in Washington, DC, on January 20, 2017. / AFP / Robyn BECK (Photo credit should read ROBYN BECK/AFP/Getty Images)
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The S&P 500's 6.2-percent gain since the election is one of the best performances for the American stock market for any presidential transition period of the modern era.

Former President Barack Obama's transition period, which came amid the throes of the 2008 financial crisis, overlapped a 15.5 percent fall for the S&P 500 from his election to the day of his 2009 inauguration. Yet he presided over the second-best run for the stock market under any president since Dwight Eisenhower.

The Dow Jones Industrial Average snapped a five-session losing streak, closing up 94.85 points, or 0.48 percent, to 19,827.25. The S&P 500 gained 7.62 points, or 0.3 percent, to 2,271.31 and the Nasdaq Composite added 15.25 points, or 0.28 percent, to 5,555.33.

The last time when either the S&P or Dow rose on the day a new president was inaugurated was Jan. 20, 1961, when John F. Kennedy was sworn in to succeed Eisenhower. The S&P gained 0.32 percent and the Dow added 0.31 percent; the Nasdaq did not yet exist.

The first day aside, the coming month might not be as rosy. The S&P 500 has fallen by a median 2.7 percent in the month after each new president has taken the keys to the White House since Herbert Hoover in January 1929, according to a Reuters analysis.

Trump also loomed on the earnings front. Shares of Kansas City Southern rose 4 percent even as it reported a lower quarterly net profit that missed Wall Street estimates. A historic drop in the Mexican peso after Trump's election affected the regional U.S. railroad's operations in Mexico.

Among other gainers, Merck rose 3.6 percent to $62.53 after Bristol-Myers said it would not seek accelerated U.S. approval for a combination of its two immunotherapy drugs as an initial treatment for lung cancer, giving Merck an advantage in the lucrative market. Bristol-Myers' stock fell 11.3 percent.

About 6.6 billion shares changed hands on U.S. exchanges, higher than the 6.1 billion daily average for the past 20 trading days, according to Thomson Reuters data.

Advancing issues outnumbered declining ones on the NYSE by a 1.76-to-1 ratio; on Nasdaq, a 1.58-to-1 ratio favored advancers.

The S&P 500 posted 19 new 52-week highs and seven new lows; the Nasdaq Composite recorded 85 new highs and 33 new lows.

(Editing by Nick Zieminski and James Dalgleish)

Now check out how Hollywood reacted to Trump's inauguration:

42 PHOTOS
Hollywood reacts to Donald Trump's inauguration
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Hollywood reacts to Donald Trump's inauguration
Welcome to the age of plunder, bluster, and empty rhetoric. In other words, to the Age of Dumb. If you voted for him, you're responsible.
sleeping in
Then, I'm marching. #WomensMarch
https://t.co/V5ziwMJiOV
You guys...why did my email count turn to this number this minute right as he is being sworn in?!?! https://t.co/4oBVoCBdKv
nope
Ok let's do it. And I look forward to the new President setting a great example from today on! https://t.co/f08cdLeyp6
nope
i was going to go to sundance to support john tomorrow but feeling compelled to support my fellow women. see you at the women's march, DC
I made a appointment at the DMV this morning. That's where I'll be. The DMV. 🇺🇸 #AlreadyGreat
Once or twice in every generation a line is crossed so egregiously that where you stood on the issue will forever define you. -Kara Vallow
I'm trying to be a respectful diligent American rt now but as I start to watch this inauguration- Regression is the word that comes to mind.
RT @georgelopez: In urge Latinos and people who support us to joint me and #Brownout on your Avatar #chingon https://t.co/J7NHfjKlFl
Inauguration Day! Nice to be a part of a great American process. 🇺🇸🇺🇸🇺🇸 https://t.co/H7LFKtuZ2N
We are ready. Proud to be an American! #Trump #Inauguration https://t.co/oD4DIPrriA
Stop telling me to "get over it". Get UNDER it. He works for US. The democratic process is constant. Stay informed, stay engaged, speak up.
🙏🙏🙏🇺🇸🇺🇸🇺🇸❤️❤️❤️
Trump wasn't my candidate. But this is my country. And this is actually happening. God bless America! 🇺🇸 https://t.co/VFQuluTuDO
An Alternate Inaugural Address: My reading of Langston Hughes' "Let America Be America Again" (1935) on Trump's Day https://t.co/A2kc4JVsF2
Huge admiration for @HillaryClinton today. Must be such a difficult day for her. Gutsy & gracious to show up, smi… https://t.co/Sqh1h78oXa
It's a great day to watch infomercials!
Trump’s inauguration will be protested in all 50 states and 32 countries, making this the highest attended 3 Door Down concert to date.
For the first time I will not be watching or listening to anything "inauguration."
I'm boycotting my TV not even watching for the inauguration for the 1st time in my life! https://t.co/pc64Tsb6lJ
I think Barron is on his Gameboy. Can't say I can blame him. https://t.co/6o9DLajK5F
Possibly the saddest president? https://t.co/TPACtDnUD3
I agree with everything he's saying and nothing he's doing. One nation under Goldman Sachs.
On the @lennyletter bus! A woman just asked if we were relatives. No, we are riot grrrls (both start with R, I get… https://t.co/OsVR6SUGoD
Maturity, grace and oh boy, is she going high when they went low. https://t.co/kyqsVPlb22
Ladies, remember to set your clocks back 100 yrs tonight. https://t.co/QZmbhOjqjU
@potus We really gonna miss you champ. The good you've done & opportunity's you've given. Truly never know what we got til its gone. Thank u
On my to D.C. for the Woman's March. My plane is so fired up and totally awesome.
for the first time in eight years, Jews can breathe freely in this world. May it continue!
In these times, unite in kindness, deeper understanding, compassion, love, and knowledge. Make sure the truth keeps its meaning.
May God bless our new President Trump & his family, may God bless the Obama family and may God bless us all in the United States of America!
"Patriotism is the last refuge of a scoundrel." Samuel Johnson
I'm having a ball scrolling through the #InaugurationDay tweets. It's a crybabyfest 😂 liberal tears bring me such joy ✊🏻
O horror horror horror, Tongue nor heart cannot conceive nor name thee - Confusion now hath made his masterpiece #quoteoftheday
It’s time to stand with love. Join me in supporting the @ACLU and @PPFA. #loveathon. https://t.co/lyemxjyJ9E
Goodbye Pres. Obama, thx for the service- u finally get to sleep in- SOAK IT UP!! 🙌 @POTUS44
All of the jokes/parody/comedy aside, let's stop for a moment to take a full account of where we are. This country is lost. It's in trouble.
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