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Dow, S&P 500, Nasdaq close at records as US tax cut feeds rally
NEW YORK, Dec 19, 2017 (BSS/AFP) – Wall Street stocks surged to fresh records
Monday, and the Nasdaq breached 7,000 points for the first time, as a long-
awaited US tax cut plan approached final passage.
The tech-rich Nasdaq Composite Index finished the day at 6,994,76, up 0.8
percent, after pulling back from the session peak of 7,003.89.
The Dow Jones Industrial Average gained 0.6 percent to end at 24,792.20,
while the broad-based S&P 500 advanced 0.5 percent to close the session at
2,690.16. All three indices added to the previous records set Friday.
Wall Street has grown increasingly giddy this month as obstacles to the
massive tax cut package have been overcome and momentum builds for a measure
that is expected to be sent to President Donald Trump’s desk by the end of
the year. The House is expected to vote Tuesday.
“We are seeing continued buying across the board from both institutional
and individual investors,” said Adam Sarhan, chief executive of 50 Park
Investments.
Confidence is growing that after a multi-year stretch of slow expansion,
“we are now starting to see more robust growth,” Sarhan added.
“The fact that the market refuses to fall is a very bullish sign. Investor
appetite for risk remains very strong.”
Sectors with especially large gains included materials, financials and
consumer discretionary stocks.
Chip giant Intel led the Dow with a 3.8 percent gain, while Apple,
Caterpillar and DowDuPont also outperformed.
And Warren Buffet’s Berkshire Hathaway “A” shares rose 1.0 percent after
briefly pushing above $300,000 for the first time.
Besides tax cuts, analysts said sentiment was boosted by a number of small-
and medium-sized corporate deals.
The biggest involved snack company Snyder’s-Lance, which gained 7.0 percent
after being acquired by Campbell Soup for $4.9 billion. Campbell Soup rose
0.1 percent.
Freight rail company CSX rose 1.3 percent after announcing that chief
executive E. Hunter Harrison died over the weekend. Chief operating officer
Jim Foote will serve as acting CEO, the company said. The company’s shares
fell sharply on Friday on news Harrison suddenly went on medical leave.
BSS/AFP/SR/1430 HRS