Shares of manufacturing and transportation companies rose amid optimism about economic stimulus from tax reform. But the market may be too optimistic on the scale and timeline of a tax-reform bill, according to one brokerage. "Congress is pursuing a one-party, complex rewrite of the tax code with little margin for political error, internal policy disagreements, and a president whose approval numbers limit his ability to arbitrate party disagreement," said analysts at brokerage Morgan Stanley, in a research note. "Hence, while we still think tax reform will get done, we also expect that these realities will dampen and delay the outcome. Even if we're wrong and Democrats sign up for tax reform, their demands would likely lengthen the process and further limit stimulus potential." Caterpillar's retail sales of heavy machinery such as bulldozers rose in August.
-Rob Curran, email@example.com
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(END) Dow Jones Newswires
September 21, 2017 16:27 ET (20:27 GMT)