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.
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"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, firstname.lastname@example.org
(END) Dow Jones Newswires
September 11, 2017 16:25 ET (20:25 GMT)