MARKET SNAPSHOT: Dow Futures Soar 200 Points As Markets Get Boost From Tax Plan Progress

By Barbara Kollmeyer, MarketWatch Features Dow Jones Newswires

Stock-index futures pointed to a sharp rebound for Wall Street on Monday, as Dow Jones Industrial Average futures soared more than 200 points. The gains came as investors cheered weekend news that Senate Republicans passed a sweeping overhaul of the U.S. tax code.

Continue Reading Below

What are stock futures doing?

Futures for the Dow Jones Industrial Average surged 237 points, or 1%, to 24,475, while S&P 500 futures rose 16.85 points, or 0.6%, to 2,660.75. Nasdaq-100 futures jumped 32.5 points, or 0.5%, to 6,378.25.

On Friday, the Dow industrials fell 0.2% to 24,231.59, snapping a five-day winning streak. But the index closed off lows that saw the benchmark tumble 300 points (http://www.marketwatch.com/story/tech-stocks-set-to-lead-downturn-for-us-stocks-a-day-after-dow-smashes-through-24000-2017-12-01) at one point, after news about former national security adviser Michael Flynn triggered political uncertainty.

Read:It's rare for the Dow to have ramped up like this--here's what typically happens next (http://www.marketwatch.com/story/its-rare-for-the-dow-to-have-ramped-up-like-this-heres-what-typically-happens-next-2017-12-04)

In that session, the S&P 500 lost 0.2% to close at 2,642.22, while the Nasdaq Composite Index declined 0.4% to end at 6,847.59.

Continue Reading Below

The Dow industrials could log a new closing record for Monday if the indicated gains come through. On Nov. 30 it closed above 24,272.35, marking its first finish ever above the 24,000 mark.

What's driving the market?

Progress on the Republican tax plan was in the spotlight for Monday, while investors continued to watch for news of the special counsel's probe of U.S. President Donald Trump's election campaign.

Early Saturday, the Senate passed the Republican-sponsored tax reform proposal almost entirely along party lines (http://www.marketwatch.com/story/senate-passes-tax-bill-advancing-top-republican-priority-2017-12-02), which being viewed as a key victory for U.S. President Donald Trump. Only Democrats and Tennessee Republican Bob Corker voted against it.

Read:Trump celebrates tax-bill victory as opponents vent their fury via #TaxScamBill (http://www.marketwatch.com/story/trump-celebrates-tax-bill-victory-as-opponents-vent-their-fury-via-taxscambill-2017-12-02)

Hopes that the Trump administration and Republicans would usher in a business-friendly tax overhaul have been cited as a driver for the stock market's record-setting streak over the past year. The House and Senate now must agree on a single tax bill before it can be sent to Trump to sign.

Rattling markets on Friday was news that Flynn, a former member of Trump's election team, pleaded guilty to lying to federal investigators who are probing Russia's alleged interference in the U.S. election. Another factor was an ABC News report that Flynn was preparing to testify that Trump, as a presidential candidate, directed him to make contact with the Russians, though ABC News later Friday corrected that story, (https://www.marketwatch.com/story/abc-news-reporter-brian-ross-suspended-for-4-weeks-for-erroneous-flynn-report-2017-12-03https:/www.marketwatch.com/story/abc-news-reporter-brian-ross-suspended-for-4-weeks-for-erroneous-flynn-report-2017-12-03) (https://www.marketwatch.com/story/abc-news-reporter-brian-ross-suspended-for-4-weeks-for-erroneous-flynn-report-2017-12-03https:/www.marketwatch.com/story/abc-news-reporter-brian-ross-suspended-for-4-weeks-for-erroneous-flynn-report-2017-12-03)saying the contact instead came when Trump was president-elect.

(https://www.marketwatch.com/story/abc-news-reporter-brian-ross-suspended-for-4-weeks-for-erroneous-flynn-report-2017-12-03https:/www.marketwatch.com/story/abc-news-reporter-brian-ross-suspended-for-4-weeks-for-erroneous-flynn-report-2017-12-03)What are strategists saying?

"The market is focused on the historical tax overhaul rather than political tensions and investigations on Donald Trump. The positive trend in the U.S. stock markets could stretch to uncharted territories," said Ipek Ozkardeskaya, senior market analyst with LCG.com, in a note to clients.

Read:Here's why the stock-market rally is unlikely to be derailed by Michael Flynn (http://www.marketwatch.com/story/why-stock-market-rally-unlikely-to-come-undone-by-flynn-news-2017-12-01)

"So the chances of tax cuts being placed onto Trump's desk to sign through have increased markedly, and we start this week with the process of reconciliation between both the House and Senate tax plan, while Congress is also trying to pass a continuous resolution (CR) to avoid a government shutdown on 8 December," said Chris Weston, chief market strategist at IG Group, in a note to clients.

See:It's rare for the Dow to have ramped up like this--here's what typically happens next (http://www.marketwatch.com/story/its-rare-for-the-dow-to-have-ramped-up-like-this-heres-what-typically-happens-next-2017-12-04)

"Both issues should keep risk supported, and one questions what is going to really derail sentiment as we head into the final month and one that is traditionally a great breeding ground for equity appreciation," Weston added.

What stocks could be active?

Digital Power Corp.(DPW) jumped 40% in premarket after the company said its Coolisys Technologies unit launched a line of power systems for cryptocurrency mining (http://www.marketwatch.com/story/digital-powers-stock-rockets-after-line-of-cryptocurrency-power-systems-launched-2017-12-04).

Shares of General Cable Corp.(BGC) jumped 32% in premarket after Italy's cable maker Prysmian SpA (PRY.MI) said it would buy the cable manufacturer in a deal that values it at around $3 billion (http://www.marketwatch.com/story/prysmian-to-buy-general-cable-in-3-billion-deal-2017-12-04).

Shares of Aetna Inc.(AET) rose 3.4% in premarket after CVS Health Corp.(CVS) agreed to buy the U.S.'s third-largest health insurer (http://www.marketwatch.com/story/cvs-to-acquire-health-insurer-aetna-in-years-biggest-deal-valued-at-69-billion-2017-12-03) for about $69 billion in cash and stock. CVS shares fell nearly 4% in premarket.

Read: Dialog dives 14% after saying it could lose some Apple business (http://www.marketwatch.com/story/dialog-dives-14-after-saying-it-could-lose-some-apple-business-2017-12-04)

What's on the data docket?

Investors will get several big pieces of economic data this week, including the nonfarm-payroll report on Friday. On the economic front for Monday, a reading on factory orders for October is slated for release at 10 a.m. Eastern Time.

Read:Don't expect strong U.S. hiring to keep up in 2018 (http://www.marketwatch.com/story/dont-expect-strong-us-hiring-to-keep-up-in-2018-2017-12-02)

What are other markets doing?

Asian markets finished mixed (http://www.marketwatch.com/story/asian-markets-shrug-off-senates-approval-of-tax-bill-2017-12-03), with Hong Kong's Hang Seng Index rising after a string of consecutive losses. But other regional gauges, such as the Nikkei 225 index , came under pressure. European stocks were higher across the board with the German DAX 30 index surged by the most in a month (http://www.marketwatch.com/story/dax-jumps-by-the-most-in-a-month-as-us-tax-progress-revs-up-european-stocks-2017-12-04), boosted by news of U.S. tax-plan progress.

Oil prices fell (http://www.marketwatch.com/story/oil-slips-from-1-week-high-as-us-rig-count-rises-2017-12-04) on Monday, with crude for January down 0.9% to $57.96 a barrel. The ICE Dollar index was up (http://www.marketwatch.com/story/dollar-pushes-higher-as-investors-focus-on-tax-plan-progress-2017-12-04) 0.4% to 93.24. Gold dropped 0.5% to $1,275.90 an ounce.

Bitcoin came close (http://www.marketwatch.com/story/bitcoin-rebounds-surges-above-11700-for-yet-another-record-2017-12-03) to the $12,000 level in Asian trading hours on Monday, but has pulled back to last trade around $11,329.17.

(END) Dow Jones Newswires

December 04, 2017 08:09 ET (13:09 GMT)