Shares of manufacturing and transportation companies rose sharply after strong factory data and a breakthrough on tax legislation. Industrial production rose a marked 1.3% in October, clear evidence of the elastic-band effect that economists predicted that major hurricanes would have on economic activity.
The House of Representatives voted for a massive cut in taxes for U.S. individuals and corporations. "Tax reform is top of mind among investors," said analysts at brokerage Goldman Sachs, in an overview of management comments during third-quarter earnings conference calls. "Some firms, particularly those in capital-intensive industries, worried that the repeal of interest deductibility could increase their financing costs."
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Diversified manufacturer Emerson Electric raised its offer to buy Rockwell Automation, which makes manufacturing technology, to roughly $29 billion, or $225 a share, up from its previous bid of $215 a share. Executives at Rockwell Automation, who have thus far declined to enter negotiations, didn't comment on the latest offer. German manufacturing conglomerate Siemens said it would cut 6,900 jobs world-wide, a response to a slowdown in the power-plant industry.
-Rob Curran, email@example.com
(END) Dow Jones Newswires
November 16, 2017 16:09 ET (21:09 GMT)