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DJIA – Dow Jones Industrial Average

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Dow, S&P 500 end with a whimper after Trump’s ‘massive’ tax proposal

U.S. stocks ended little-changed on Wednesday, losing altitude in the final minutes of trade, following a highly anticipated announcement of President Donald Trump’s ambitious tax proposal that had helped to fuel a breakout for equities in recent days. The Dow Jones Industrial Average ended 0.1% lower at 20,975.09, the S&P 500 index finished off 1.16 point, or less than 0.1%, at 2,387.45, while the Nasdaq Composite Index , which touched a fresh intraday record of 6,040.89 before retreating, ended little-changed at 6,025–holding above its psychologically significant level of 6,000, hit Tuesday. In a news conference Wednesday afternoon, Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn produced a one-page outline of the eagerly awaited plan, but the lack of details appeared to disappoint investors. The yield on the 10-year Treasury yield [BX:TMUBMUSD10Y]slipped to 2.30%, highlighting a pick up in bidding for haven government bonds. Bond prices and yields move inversely. One bright spot, the Russell 2000 , a gauge of small-capitalization companies, and those mostly likely to benefit from tax cuts for small companies, ended at a record at 1,419.43, up 0.6%. Proposals to cut the tax rate to 15% from 35%, has boosted shares of small cap, which are up 2.9% for the week, compared with a 1.7% weekly rise for the S&P 500 and 2.1% for the Dow. In corporate action, Verizon Communications Inc. led gains for the Dow, while shares of Procter & Gamble Co. topped losses for blue-chips, down 2.5%. Twitter Inc. , also closed up nearly 8%, after reporting better-than-expected quarterly results.




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