Shares of manufacturing and transportation companies rose amid optimism about the outlook for earnings and tax policy.
"Investors continue to focus on generally improving economic growth, solid corporate earnings and slowly normalizing central bank policy, believing these factors will remain equity market-friendly," said Bob Doll, chief equity strategist at money manager Nuveen Investments. "The U.S. political environment continues to appear uncertain, but for now investors are looking past the confusion and possible negatives."
Investor confidence that Treasury Secretary Steven Mnuchin will succeed in pushing through massive tax cuts without significant spending cuts may be an underestimation of deficit hawks in the U.S. Senate, warned analysts at brokerage Morgan Stanley, in a research note.
"The likely outcome is a moderated plan with limited deficit expansion, because the alternative is a higher risk of failure," said the Morgan Stanley analysts.
-Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
October 16, 2017 16:41 ET (20:41 GMT)