US stocks trade higher on tax reform expectation

American flag hangs on the front of the New York Stock Exchange on an evening in New York. World stock markets mostly fell Tuesday Dec. 5 2017 as investors digested the possible impact of the U.S

American flag hangs on the front of the New York Stock Exchange on an evening in New York. World stock markets mostly fell Tuesday Dec. 5 2017 as investors digested the possible impact of the U.S

Currently, the Dow is up 231.95 points or 1 percent at 24,463.54 and the S&P 500 is up 12.97 points or 0.5 percent at 2,655.19, but the Nasdaq is down 33.11 points or 0.5 percent at 6,814.48.

The recent events leading to the U.S. tax reform has pushed the Dow Jones higher by more than 20% as investors grew increasingly hopeful regarding the U.S. tax cuts.

Some Asia-Pacific stock markets struggled after pockets of selling last week, notably in technology. It was the only sector of the 11 that make up the index to rise, though it had been up as much as 1.4 percent earlier in the day. The Senate and House of Representatives are trying to reconcile their respective versions before sending it to President Donald Trump for his approval, and investors are trying to figure out which industries and companies will come out as winners and losers from it.

The Dow Jones Industrial Average closed at another record Monday after the Senate passed a tax bill, while declines in shares of technology companies weighed on the S&P 500 and Nasdaq Composite.

Micron Technology rose $1.31, or 3.3 percent, to $41.21 for the largest gains in the S&P 500. 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. "Tech is going to be supported by very strong earnings, which is ultimately what's going to drive the market next year". The S&P 500 fell 2.78 points, or 0.1%, to 2639.44, after being up much of the day, and the tech-heavy Nasdaq Composite slipped 72.22 points, or 1.1%, to 6775.37. They already were typically paying the lowest effective tax rates of the 11 sectors in the S&P 500, analysts said. Telecom stocks fell 1.8 percent for the sharpest loss among the index's sectors.

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

Meanwhile, the major European markets all moved to the upside on the day. Utilities, industrial companies and retailers were also weak. Wildfires are raging outside Los Angeles, and investors are guessing the damage could result in losses for the company's Southern California Edison electric utility subsidiary. France's CAC 40 jumped 1.4 percent, and Germany's DAX surged 1.5 percent. The FTSE 100 in London lost 0.2 percent. The yield on the 10-year Treasury note dropped to 2.35 percent from 2.37 percent late Monday.

The dollar rose to 112.60 Japanese yen from 112.05 yen late Friday. The euro dipped to $1.1816 from $1.1855, and the British pound fell to $1.3442 from $1.3471.

Benchmark U.S. crude fell 89 cents to settle at $57.47 per barrel. Brent crude, the international standard, gained 41 cents to $62.86 a barrel in London.

Natural gas lost 8 cents to $2.99 per 1,000 cubic feet, heating oil lost 5 cents to $1.89 per gallon and wholesale gasoline dropped 5 cents to $1.69 per gallon.

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