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Tax overhaul vote sends stocks higher

06 Diciembre 2017

In oil, the price of crude was down 1.10% to US$57.69 a barrel.

Significant strength is also visible among banking stocks, as reflected by the 2.7 percent gain being posted by the Dow Jones Banks Index.

It had been widely but not fully expected to happen.

Earlier in the day the Dow climbed to a record 24,534.04 while the S&P 500 touched a record 2,665.19. The Senate and House are trying to reconcile their respective versions before sending a bill to President Trump, and investors are trying to figure out which industries and companies will come out as winners and losers. At the same time, technology stocks slumped and gave up a chunk of the gains that have made them the best-performing part of the market by far this year.

The tech heavy Nasdaq shed over 15 points to stand at 6,832 as the tech FAANG stocks (including Facebook, Microsoft, Alphabet, Amazon) weighed.

The rest of the market closed lower, however, as a sharp decline in tech pressured the S&P 500 and Nasdaq composite.

It culminated in a loss of 1.9 percent for S&P 500 tech stocks on Monday, the first trading day after the Senate passed its version of the tax overhaul.

At 8:31 a.m. ET (1331 GMT), Dow e-minis were up 77 points, or 0.32 percent, with 29,625 contracts changing hands. And that attracted buyers.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. It was the only sector of the 11 that make up the index to rise.

On the U.S. economic front, the Commerce Department released a report showing a modest decrease in new orders for manufactured goods in the month of October. Germany's DAX Index rallied 1.5 percent, while France's CAC 40 Index gained 1.4 percent, and the UK's FTSE 100 Index increased 0.5 percent.

Meanwhile, the major European markets all moved to the upside on the day. Utilities, industrial companies, and retailers were also weak. It's a very different position for the sector, which has nearly doubled the performance of the S&P 500 this year.

In the bond market, treasuries are giving back ground following the strong upward move seen last Friday.

Once the bills are reconciled, the resulting bill could cut corporate tax rates to 20 percent from 35 percent.

Tax overhaul vote sends stocks higher