Dow, S&P snap 5-day losing streaks

House Democrats piece together tax-hike plan

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%.  

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 35677.02 +73.94 +0.21%
SP500 S&P 500 4544.9 -4.88 -0.11%
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.

Ticker Security Last Change Change %
AAPL APPLE, INC. 148.69 -0.79 -0.53%

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. 

Ticker Security Last Change Change %
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. 

Ticker Security Last Change Change %
TRU TRANSUNION 116.31 +1.38 +1.20%

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. 

Ticker Security Last Change Change %
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. 

Ticker Security Last Change Change %
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. 

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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%.