U.S. stock indexes ended mixed Monday with both the Dow Jones Industrial Average and the S&P 500 snapping their five-day losing streaks.
The Dow climbed 264 points, or 0.76%, as the S&P 500 index added 0.23%. The Nasdaq Composite index, meanwhile, slipped 0.07%.
|I:DJI||DOW JONES AVERAGES||35677.02||+73.94||+0.21%|
|I:COMP||NASDAQ COMPOSITE INDEX||15090.200353||-125.50||-0.82%|
The early gains came as House Democrats work on a draft proposal that would raise taxes on the wealthy and corporations to pay for their $3.5 trillion budget package.
Details of the proposal could still change, but it is said to include raising taxes on individuals making over $400,000 annually and married couples filing jointly earnings of $450,000 per year. It also includes raising the top corporate tax rate to 26.5% from 21% and increasing the top capital gains rate to 25% from 20%.
In stocks, Apple Inc. shares recouped a portion of Friday’s losses that came after a federal judge issued a permanent injunction that would allow players to avoid the 30% Apple Store fees.
Virgin Galactic Holdings Inc. said it was postponing its joint space mission with the Italian Air Force until mid-October due to concern over a potential manufacturing defect in a component of the flight control system.
|SPCE||VIRGIN GALACTIC HOLDINGS, INC.||19.66||-0.49||-2.43%|
In deals, TransUnion agreed to buy Neustar, a real-time information and analytics company, from a private investment group for $3.1 billion.
Elsewhere, Kansas City Southern plans to accept a $27.2 billion cash and stock offer to sell itself to Canadian Pacific Railway Ltd. unless rival Canadian National Railway Ltd. is able to submit a more appealing deal by Friday. Canadian Pacific’s $29.6 billion offer was last month pushed aside after the U.S. Surface Transportation Board rejected its voting structure.
|KSU||KANSAS CITY SOUTHERN||305.33||+3.37||+1.12%|
|CP||CANADIAN PACIFIC RAILWAY LTD.||76.13||+1.14||+1.52%|
|CNI||CANADIAN NATIONAL RAILWAY CO.||135.53||+2.79||+2.10%|
Elsewhere, Alibaba Group Holding Ltd. was lower after a Financial Times report said Beijing wants to break up payments app Alipay, which is owned by affiliate Ant Group.
|BABA||ALIBABA GROUP HOLDING LTD.||177.70||+0.28||+0.16%|
In commodities, West Texas Intermediate crude oil added 73 cents to $70.45 a barrel and was on track for its best close since Aug. 2. Gold, meanwhile, gained $2.40 to $1,792 an ounce.
Overseas markets were mostly higher.
European bourses rallied across the board with Germany’s DAX climbing 0.59%, France’s CAC 40 advancing 0.2% and Britain’s FTSE 100 up 0.56%.
In Asia, Japan’s Nikkei 225 and China’s Shanghai Composite edged up 0.22% and 0.33%, respectively, while Hong Kong’s Hang Seng index tumbled 1.5%.