Shares of manufacturing and transportation companies rose as the "Trump trade" came back into fashion.
In the immediate aftermath of President Donald Trump's election, investors piled into industrial and financial stocks in anticipation of economic stimulus and deregulation. Those trades foundered when Mr. Trump's legislative program stalled.
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Now, as the Trump administration lays out its tax plan and political analysts predict a bill in the relatively near future, industrial and financial stocks are coming back into fashion.
"The Republican leadership released a new tax blueprint that will be the starting point for negotiations, but many of the contentious parts of the plan remain for Congress to iron out," said analysts at brokerage Bank of America Merrill Lynch global Research. "While this marks progress on tax reform, we remain skeptical that legislation will pass by early next year."
"The lack of detail has the strategic benefit of holding off lobbyists and individual members who may oppose specific pay fors," said analysts at brokerage Morgan Stanley, in a research note, adding the rough blueprint indicates congressional officials are already planning for an extended debate.
Rob Curran, email@example.com
(END) Dow Jones Newswires
September 29, 2017 17:06 ET (21:06 GMT)