Wall St. Edges Up on Healthcare, Tax Plan Hopes
U.S. Treasury Secretary Steven Mnuchin said Trump’s proposal for a cut in the corporate income tax rate to 20 percent was “not negotiable.”
The plan, which called for tax cuts for most Americans, also drew criticism for favoring business and the rich and potentially adding trillions of dollars to the deficit.
A Commerce Department report showed the economy grew a bit faster than previously estimated in the second quarter, but the momentum probably slowed in the third as Hurricanes Harvey and Irma temporarily curbed activity. The storms also pushed up initial claims for state unemployment benefits for the week, the Labor Department said.
“People are waiting to see if the economy actually picks up, they are going to be waiting a long time if they are anticipating it is going to pick up meaningfully,” said Scott Wren, senior global equity strategist at Wells Fargo Investment Institute in St. Louis.
The Dow Jones Industrial Average rose 40.49 points, or 0.18 percent, to 22,381.2, the S&P 500 gained 3.02 points, or 0.12 percent, to 2,510.06 and the Nasdaq Composite added 0.19 points, to 6,453.45.
The healthcare index led S&P gainers, rising by a third of a percent.
AbbVie was the biggest boost to the S&P, rising 4.97 percent after announcing a global resolution of intellectual property-related litigation with Amgen.
Abbott advanced 2.86 percent after the U.S. FDA approved the company’s glucose monitoring device. The company also won U.S. antitrust approval to buy Alere Inc on condition that it sell two point-of-care medical testing businesses.
Advancing issues outnumbered declining ones on the NYSE by a 1.47-to-1 ratio; on Nasdaq, a 1.35-to-1 ratio favored advancers.
About 5.85 billion shares changed hands in U.S. exchanges, compared with the 6.26 billion daily average over the last 20 sessions.
(Additional reporting by Sinead Carew; Editing by Nick Zieminski)
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