Banks, lenders and other financial companies ticked down amid uncertainty about the outlook for President Donald Trump's tax plan.
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With a high effective tax rate and little to lose from possible offset taxes, the financial sector has the most to gain from corporate tax cuts, said Thomas Digenan, head of US Intrinsic Value Equity at UBS Asset Management. "If to get the lower tax rates there's some kind of border tax compromise, that hits some of the [consumer] staples pretty hard to the extent they produce things outside the U.S. With financials, it goes straight to their bottom line."
Units of KKR rose after the leveraged-buyout firm posted a quarterly profit and as activist firm ValueAct Capital Management disclosed a large stake in the firm, arguing that KKR's units are priced as if it won't survive its founders.
-Rob Curran, email@example.com
(END) Dow Jones Newswires
April 27, 2017 17:06 ET (21:06 GMT)