Miércoles, 19 Diciembre, 2018

US STOCKS-Wall Street set to rise on tax-cut optimism

E-mini Dow Jones Industrial Average Weekly December E-mini Dow Jones Industrial Average
Frascuelo Febo | Diciembre 06, 2017, 08:25

The New York Stock Exchange seen here on Thursday, Nov. 30, 2017.

The Dow Jones industrial average notched a record closing high on Monday after the Senate narrowly passed a major tax bill over the weekend, CNBC reported.

The ups and downs have come as investors sift through Congress's twin proposals to revamp the tax system. The S&P 500 was up as much as 0.9 percent in morning trading.

Once the bills are reconciled, the resulting bill could cut corporate tax rates to 20 percent from 35 percent. If profits do accelerate, it would help allay worries that the stock market, which is still close to record highs, has climbed too far, too quickly.

Snap was up 5.4 percent after Barclays raised the stock's rating to overweight and price target to $18.

Technology companies, meanwhile, will likely get less of a boost.

Chip makers and Internet companies led the market on Tuesday, and technology stocks in the S&P 500 rose 0.2 percent. They already were typically paying the lowest effective tax rates of the 11 sectors in the S&P 500, analysts said.

Edison International slumped 12.8 percent, the most in the S&P 500. Japan's Nikkei 225 Index fell by 0.5 percent, while Hong Kong's Hang Seng Index rose by 0.2 percent. France's CAC 40 jumped 1.4 percent, and Germany's DAX surged 1.5 percent.

In Europe, stock markets rallied as negotiations continued for the United Kingdom's exit from the European Union.

Asian markets were mixed.

In the bond market, the yield on the 10-year Treasury note held steady at 2.37 percent.

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

Strategically, Jonas noted, the deal has growth opportunities in its long-term plan to drive customers into CVS' MinuteClinics and offer more health services there.

Benchmark U.S. crude fell 89 cents to settle at $57.47 per barrel.

In the latest corporate deals, CVS Health agreed to buy Aetna in a deal valued at about US$69 billion, the companies said on Sunday.