Shares of manufacturing and transportation companies rose as a less-severe-than anticipated hit from Hurricane Irma spurred economic optimism. While economically damaging "fiscal cliff" brinkmanship was averted last week when President Donald Trump struck a deal with Democratic lawmakers, legislators could yet engage in the tactic in the near future, according to one money manager.
"The upshot is a likely fiscal cliff toward year-end as lawmakers again confront the debt limit and government funding -- without the face-saving element of disaster relief," said Richard Turnill, global chief investment strategist for money manager BlackRock, in a note to clients. Another brokerage made a slightly different political calculation.
Continue Reading Below
"At this stage, we remain constructive that the political reality of going into midterm elections having failed to deliver on primary campaign promises around health-care reform will galvanize Republicans to deliver some form of tax cuts," said analysts at brokerage Morgan Stanley in a research note.
-Rob Curran, email@example.com
(END) Dow Jones Newswires
September 11, 2017 16:25 ET (20:25 GMT)