Yahoo Finance S&P 500 Closes in Record Territory on Signs of Tax Reform Progress
Investing.com – US stocks rallied on Friday amid renewed optimism on tax reform ahead of the release of the final tax bill that aims to overhaul the U.S. tax system.
The Dow Jones Industrial Average closed higher at 24651. The S&P 500 closed 0.9% higher, while the Nasdaq Composite closed at 6936.58, up 1.17%.
The major averages rose sharply as uncertainty over the progress of tax reform eased following reports that Republicans secured enough votes for the bill's passage.
CNBC, citing two sources, said Marco Rubio will support the final Republican tax bill after the GOP made changes to win his vote.
Rubio earlier this week, had said he would not approve the GOP tax plan unless it raises the refundable portion of the child tax credit currently at $1,100.
The final tax bill is expected to include a plan to cut the corporate tax rate to 21% from 35%, fueling optimism that corporate earnings would likely receive a boost, spurring a broader rally in sectors believed to be the main beneficiaries of lower taxes.
On the economic front, investors mulled over economic reports on industrial production and manufacturing that fell short of expectations.
The Empire State manufacturing index fell to 18.0 in December from 19.4 the month prior, in-line with expectations.
Industrial production—a measure of output at factories, mines and utilities—rose a seasonally adjusted 0.2% in November from the prior month, the Federal Reserve said Friday. This was slightly below the 0.3% rise forecast by economists.
In corporate news, meanwhile, Costco (NASDAQ:COST) closed more than 3% higher following a bullish earnings report that beat on both top and bottom lines.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: Intel Corporation (NASDAQ:INTC) up 3%, Microsoft (NASDAQ:MSFT) up 2.6% and Pfizer (NYSE:PFE) up 2%
International Business Machines (NYSE:IBM) down 1%, DowDuPont Inc (NYSE:DWDP) down 0.5% and Wal-Mart Stores Inc (NYSE:WMT) down 0%, were among the worst Dow performers of the session.
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