Shares of manufacturing and transportation companies ticked down as traders hedged their bets on the likely path for tax policy.
"I think the odds of something passing are high," said Thomas Digenan, head of US Intrinsic Value Equity at UBS Asset Management.
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Still, Mr. Digenan said he expected economic performance, rather than tax policy negotiations to determine the course of the market in the intermediate term. Among the biggest risks to economic performance is trade--rather than tax--policy, the strategist said.
Recent warnings about quitting the North American Free Trade Agreement were a sign that Mr. Trump hasn't abandoned trade reform altogether.
"I think the trade concerns will probably be an overhang for a little while," Mr. Digenan said.
The most likely outcome of negotiations between the "three amigos"--the U.S., Canada and Mexico--will be an updated NAFTA treaty, said analysts at brokerage Bank of America Merrill Lynch Global Research, in a note to clients.
Still, "risk of termination remains, and renegotiation outcomes are uncertain, especially as domestic politics will be involved," the BofA analysts warned. "This will keep market volatility high and delay investment."
United Parcel Service said rising delivery costs took their toll on profits despite increased revenue and demand.
-Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
April 27, 2017 16:56 ET (20:56 GMT)