Investors await details of Republican tax overhaul proposal
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U.S. stocks rose on Wednesday, with equities stabilizing after a four-session skid for the Dow industrials and as financial shares rallied on a positive rate outlook.
What are stocks doing?
The Dow Jones Industrial Average rose 72 points, or 0.3%, to 22,357. The S&P 500 was up 10 points to 2,507, a gain of 0.4%. The Nasdaq Composite Index was up 42 points, or 0.7%, to 6,423.
The day's gains were broad, with eight of the 11 primary S&P 500 sectors higher on the day. Financials were particularly strong, up 1.1%. Among the biggest gainers on the day, Bank of America(BAC) was up 1.8% while Citigroup (C) added 1.7%. Wells Fargo & Co (WFC) was up 1.2%.
What are market participants saying?
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"There's nothing really on the worry front, as far as markets go. Valuations are fair to full, but they're being supported by earnings, so we're not concerned about that as it stands right now," said Paul Springmeyer, investment managing director at U.S. Bancorp, which has $148 billion in assets under advisement.
On Tuesday, the Dow finished less than 0.1% lower (http://www.marketwatch.com/story/us-stock-futures-fall-after-north-korean-nuclear-bomb-threat-2017-09-22), marking its fourth down day in a row, leaving it 0.6% below its record close hit a week ago. The S&P and Nasdaq Composite both closed slightly higher Tuesday, as North Korea-related fears (http://www.marketwatch.com/story/trump-us-is-totally-prepared-for-military-option-with-north-korea-2017-09-26) abated.
What's driving the market?
Federal Reserve Chairwoman Janet Yellen said the central bank won't dawdle while raising interest rates (http://www.marketwatch.com/story/yellen-says-fed-should-be-wary-of-raising-rates-too-gradually-2017-09-26). The news was positive for banks, which typically do better in periods of higher rates, do to the positive impact they have on net interest margins.
What are investors watching out for today?
A major Republican announcement on tax reform (http://www.marketwatch.com/story/trump-today-president-says-puerto-rico-response-has-gotten-tremendous-reviews-2017-09-26) is promised for Wednesday.
"We know the worst-case scenario for markets: the current tax law," Springmeyer said. "Because any improvement would be a benefit for markets, we see more upside in the event it passes, and less downside in the event it doesn't."
Read more:Wilbur Ross says tax reform could boost economy by 1% (http://www.marketwatch.com/story/wilbur-ross-done-right-tax-reform-could-boost-economy-by-1-2017-09-26)
And see:GOP tax plan to allow for top individual rate above 35% (http://www.marketwatch.com/story/republican-tax-plan-to-allow-for-top-individual-rate-above-35-2017-09-26)
Which stocks are Wall Street following?
Nike Inc.(NKE) fell 4% after the sneakers giant late Tuesday posted fiscal first-quarter earnings that beat forecasts, but its revenue was slightly below expectations (http://www.marketwatch.com/story/nike-shares-rise-as-company-beats-eps-expectations-2017-09-26).
Shares in Micron Technology Inc.(MU) rose 6% a day after the chip maker reported better-than-expected earnings (http://www.marketwatch.com/story/micron-tech-shares-rise-after-earnings-beat-2017-09-26).
J.P. Morgan Chase & Co. (JPM) was ordered pay more than $4 billion in damages for mismanaging the estate of a former executive for American Airlines (AAL). Shares of the investment bank rose 1.4%.
Therapix Biosciences Ltd. (TRPX.TV) jumped 8.3% following positive preclinical results (http://www.marketwatch.com/story/therapix-biosciences-shares-surge-6-on-preclinical-results-for-cognitive-impairment-therapy-2017-09-27-8914114) for a potential cognitive impairment therapy.
See:Micron reassures investors that memory-chip demand remains very high (http://www.marketwatch.com/story/micron-reassures-investors-that-memory-chip-demand-remains-very-high-2017-09-26)
What are other assets doing?
The ICE U.S. Dollar Index (http://www.marketwatch.com/story/dollar-index-jumps-to-1-month-high-ahead-of-gop-tax-plan-2017-09-27) was gaining, building on Tuesday's rise (http://www.marketwatch.com/story/dollar-jumps-to-1-month-high-vs-euro-ahead-of-yellen-speech-2017-09-26) (http://www.marketwatch.com/story/gold-at-fresh-lows-for-the-month-as-dollars-win-streak-expands-2017-09-27)
Gold futures (http://www.marketwatch.com/story/gold-at-fresh-lows-for-the-month-as-dollars-win-streak-expands-2017-09-27) lost ground, while oil futures (http://www.marketwatch.com/story/oil-prices-in-holding-pattern-before-us-supply-report-2017-09-27) were little changed.
European stocks (http://www.marketwatch.com/story/european-stocks-jump-to-10-week-high-led-by-alstom-after-siemens-deal-2017-09-27) rose, and Asian markets closed mixed (http://www.marketwatch.com/story/asian-markets-unfazed-after-yellen-hints-at-rate-hikes-2017-09-26).
Don't miss:The stock sector that has been 2017's big loser became a big winner this month (http://www.marketwatch.com/story/the-stock-sector-that-has-been-2017s-big-loser-turned-into-a-big-winner-this-month-2017-09-27)
Read:Here's why value stocks are starting to outperform growth (http://www.marketwatch.com/story/heres-why-value-stocks-are-starting-to-outperform-growth-2017-09-26)
What are the data?
Orders for durable goods rose 1.7% in August, beating forecasts for a 1% rise (http://www.marketwatch.com/story/durable-goods-orders-jump-17-in-august-2017-09-27).
Pending home sales for August are due at 10 a.m. Eastern from the National Association of Realtors. Expectations are for a decline of 0.8%.
Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
Which Fed speakers are on tap Wednesday?
(END) Dow Jones Newswires
September 27, 2017 09:55 ET (13:55 GMT)