Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Tech stocks tug Wall Street lower; investors fret about U.S. tax cut delays

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/09/2017 | 11:45pm CEST
Traders work on the floor of the NYSE in New York

(Reuters) - Wall Street stocks dropped on Thursday, weighed down by losses in Microsoft and other technology issues, as investors turned their attention to a U.S. Senate Republican plan that would delay expected corporate tax cuts.

The S&P 500 index has surged about 21 percent since the election of President Donald Trump a year ago, fueled by his promises to cut corporate taxes and other business-friendly measures.

Senate Republicans are unveiling a tax proposal that differs markedly on corporate, business and individual tax cuts from legislation detailed by their counterparts in the House of Representatives, Republican aides said.

The Senate proposal delays a corporate tax rate cut to 20 percent by a year and provides small-business owners with a deduction rather than a special business rate, said the aides.

Earlier on Thursday, uncertainty about the future of corporate tax rates pushed the S&P 500 down as much 1.0 percent, underscoring how much Wall Street is banking on a tax reduction., but the selloff was brief and stocks quickly recovered much of the dip.

The S&P 500 is trading at 18 times expected earnings, expensive compared with its 10-year average of 14.3, according to Thomson Reuters Datastream. Cutting corporate taxes would boost earnings and make stocks relatively less expensive.

"It's been a year since the election. We've gone up 22 percent on hopes of what the Trump agenda would bring, and while they're trying to work toward this thing, they haven't really accomplished much yet," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

"If progress is not made, the equity market should either pause or correct until meaningful progress is made."

The Dow Jones Industrial Average <.DJI> lost 0.43 percent to end at 23,461.94, while the S&P 500 <.SPX> declined 0.38 percent to 2,584.62.

The Nasdaq Composite <.IXIC> dropped 0.58 percent to 6,750.05.

The Philadelphia Semiconductor index <.SOX>, a top performer in 2017.

Six of the 11 major S&P 500 sectors fell, with industrials <.SPLRCI> down 1.28 percent and the technology <.SPLRCT> index off 0.85 percent.

Apple (>> Apple), Microsoft (>> Microsoft Corporation), Alphabet (>> Alphabet), Oracle (>> Oracle Corporation) and Facebook (>> Facebook) were among the stocks weighing most on the S&P 500.

Technology has been the best-performing S&P 500 sector so far this year, with a 37 percent rise. The sector's stretched valuations make it vulnerable to selling as investors worry that promised tax reductions might not emerge.

Roku (>> Roku Inc) soared 55 percent after the video streaming device maker's quarterly results and guidance beat expectations.

Macy's (>> Macy's Inc) jumped 10.98 percent after the department store operator's profit came in above expectations.

In extended trade, Nordstrom dropped 1.0 percent after that retailer reported quarterly sales short of analysts' expectations.

Walt Disney Co (>> Walt Disney Company (The)) lost 2.0 percent after the bell following its quarterly report while chipmaker Nvidia (>> NVIDIA Corporation) rose nearly 2.0 percent after its report.

During the session, Dish Network (>> Dish Network) rose 3.22 percent after the satellite and internet TV provider added subscribers in the United States in the third quarter and reduced the rate at which it lost existing customers.

Declining issues outnumbered advancing ones on the NYSE by a 1.67-to-1 ratio; on Nasdaq, a 1.62-to-1 ratio favored decliners.

About 7.4 billion shares changed hands on U.S. exchanges, above the 6.6 billion daily average over the last 20 sessions.

(Additional reporting by Tanya Agrawal and Caroline Valetkevitch; Editing by Dan Grebler)

By Noel Randewich

Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET -4.08% 1029.53 Delayed Quote.1.94%
APPLE -0.78% 163.9354 Delayed Quote.-2.36%
DISH NETWORK CORPORATION -0.11% 37.29 Delayed Quote.-22.03%
DJ INDUSTRIAL -0.65% 24275.11 Delayed Quote.-1.09%
FACEBOOK -2.74% 161.27 Delayed Quote.-6.02%
MACY'S 1.67% 30.89 Delayed Quote.18.94%
MICROSOFT CORPORATION -0.83% 94.51 Delayed Quote.11.47%
NASDAQ 100 -1.16% 6571.4083 Delayed Quote.4.24%
NASDAQ COMP. -0.73% 7075.5549 Delayed Quote.3.52%
NVIDIA CORPORATION -0.28% 222.91 Delayed Quote.15.70%
ORACLE CORPORATION 0.59% 46.07 Delayed Quote.-2.22%
ROKU INC 1.61% 32.83 Delayed Quote.-37.68%
S&P 500 0.01% 2670.29 Real-time Quote.-0.13%
WALT DISNEY COMPANY (THE) -0.30% 99.78 Delayed Quote.-6.76%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
06:22pUNITED STATES SENATE DEMOCRATS : 3pm vote on Duncan nomination, Nakasone nomination confirmed by voice vote
PU
06:21pDMG BLOCKCHAIN : Adds Litecoin Creator Charlie Lee to its Advisory Board
AQ
06:17pAPI AMERICAN PETROLEUM INSTITUTE : Colorado Petroleum Council applauds Senate for supporting new mineral and royalty owner protections
PU
06:15pU.S. New Home Sales Rose in March -- Update
DJ
06:12pISDA &NDASH; INTERNATIONAL SWAPS AND DERIVATIVES A : Press Releases | Apr 24, 2018
PU
06:11pMexico seeks flexibility for new NAFTA deal as ministers meet
RE
06:11pMexico seeks flexibility for new NAFTA deal as ministers meet
RE
06:07pKIRKLAND & ELLIS LLP : represents 3i on investment in International Cruise & Excursions
PU
06:03pCBI CONFEDERATION OF BRITISH INDUSTRY : UK businesses contributed £186 billion in tax revenues in 2017/18
PU
05:56pTrump - 'Very good chance' of a U.S.-China trade deal
RE
Latest news "Economy & Forex"
Advertisement