Dow soars after Senate passes tax reform

Dow soars after Senate passes tax reform

Financial markets rose sharply earlier in the day after the Senate passed sweeping tax legislation early Saturday.

The bill would lower tax rates for individuals through 2025 and permanently cut the corporate tax rate from 35 percent to 20 percent.

Banks, which are expected to benefit from the tax cuts, rose more than the rest of the market in early trading Monday, with Bank of America (BAC) shares jumping 3.4 percent. Amazon lost 2.4%, Facebook 2.1% and Microsoft 3.8%.

Also lifting financial stocks was a broad expectation that the Federal Reserve will increase interest rates in December, which makes bank lending more profitable.

Tech stocks in the index were down 1.3 percent, well behind the rest of the market. CVS fell 3.9 percent.

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., December 4, 2017.

The S&P 500 set a record intraday high, but then pulled back and finished lower, while the Dow industrials still managed a record high close.

Pizza party in space sounds surprising: Check out NASA scientist's Pizza Bash
The Expedition 53 crew fastened the ingredients to a table with Velcro and used scissors to cut the pizzas into slices. Commander Bresnik, a NASA veteran, called the pizza "flying saucers of the edible kind".

The Nasdaq Composite .IXIC dropped 72.22 points to end at 6,775.37.

The House, which passed its own tax bill in November, and Senate must now produce a combined measure before sending it to President Donald Trump to signed into law.

The index is now trading at about 18.2 times expected earnings, its highest level since 2002, according to Thomson Reuters Datastream.

Telecommunications companies pay some of the highest effective tax rates among the big companies in the S&P 500, so they stand to reap some of the biggest rewards of lower tax rates.

Disney shot up 4.7% on reports it was in talks to buy assets from 21st Century Fox and after its animated movie Coco led the box office last weekend. It dipped 2.78 points, or 0.1 percent, to 2,639.44.

Aetna (AET.N) shares fell 1.4% after drugstore chain operator CVS Health (CVS.N) agreed to buy the health insurer for $69 billion.

Advancing issues outnumbered declining ones on the NYSE by a 1.03-to-1 ratio; on Nasdaq, a 1.27-to-1 ratio favored decliners.

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