Shares of manufacturing and transportation companies rose after the U.S. House of Representatives passed a $1.5 trillion tax cut bill for the second time, ratifying minor changes made by the Senate. President Donald Trump declared victory but is likely to hold off signing the bill until January because of considerations related to a separate government-spending bill. The gains were muted and some major manufacturers saw their shares slip after running up for months on prospets of a bill. "This appears to be a sell on the trumpets, buy on the canons," said Oliver Pursche, chief investment strategist at broker dealer Bruderman Brothers. "You've seen a little bit of air coming out of the balloon. Obviously, there'd been a tremendous run-up ahead of the announcement." Mr. Pursche added that "no one fully understands nuances of bill yet...there are still a lot of vagaries and confusion." Analysts at brokerage Morgan Stanley said the salutary effects of the tax legislation on economic growth are likely to wear off by the second half of 2019.
-Rob Curran, firstname.lastname@example.org
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(END) Dow Jones Newswires
December 20, 2017 16:26 ET (21:26 GMT)