Wall Street shares close lower
TSX is up
President Trump's tax bill gets through House of Representatives
Wall Street shares closed lower on Tuesday as the shine came off the stock rally.
It comes as the House of Representatives passed the Republican tax bill, approving a new version of the tax code, which will slash corporation tax.
The bill moves next to the Senate, which Republicans control 52-48.
The Dow Jones shed over 37 at 24,754, while the S&P 500 shed 8.69 at 2,681.
The tech heavy Nasdaq added almost 31 points at 6,963.
In Toronto, the TSX was up 1.71 or 0.01% to 16,133.
MID-SESSION
Wall Street shares were lower at mid-session as profit-takers moved in.
It comes after US shares surged to new record highs on Monday ahead of key votes on the US tax reform bill.
The Dow Jones is down 3.94 at 24,785, while the broader based S&P 500 shed over four points at 2,686.
The Nasdaq lost over 29 points at 6,965.
In Toronto, the TSX however is going the other direction, up over 44 points at 16,175.
Notable movers included Pfenex Inc (NYSE:PFNX), which added over 56% to US$3.26 after it earned US$18.5 million in milestones and updated worldwide license and option agreement with Jazz Pharmaceuticals.
On the losing front, Yield10 BioScience Inc (NASDAQ:YTEN) shares lost over 27% to US$2.08 after the firm reported the pricing of its US$12.6 million underwritten public offering.
READ THE LONDON CLOSE - FTSE 100 closes in positive territory but off session highs
Tax overhaul bill still in focus..
The US House of Representatives is expected to vote on the final version of the tax reform bill on Tuesday, while the Senate vote is expected to follow either later on Tuesday or on Wednesday.
Dennis de Jong, managing director at UFX.com, commented : “With Republicans poised to push through Donald Trump’s GOP tax bill, investors are eyeing up something of an early Christmas present.
“The bill’s expected approval has already driven world stock markets to record highs and, despite the likely absence of John McCain and Thad Cochrane, investors can start counting their chickens.”
He added: “While the American middle class may be impacted negatively, the nation’s big corporations and multi-millionaires are likely to revel in the latest tax cuts and that’s what investor confidence is built upon.
“The sting in the tail could be that while the population of Wall Street cash in, the everyday American will be worse off and that’s concerning for the long term stability of the world’s largest economy.”
OPEN
US stocks were seeing red in early deals after the record highs of late.
The Dow Jones is down over 16 points at the time of writing at 24,775, while the S&P 500 is off 1.08 at 2,689.
The tech heavy Nasdaq is off 12 points at 6,981.
In oil US crude is up marginally (0.09%) to US$57.21 a barrel.
In Toronto, the TSX is up over 55 points at 16,186.
Among the risers, rather than fallers, was Darden Restaurants (NYSE:DRI), which added almost 4% to US$94.14 each.
The group has raised its estimates for fiscal year 2018 after reporting quarterly earnings and sales that beat analysts’ expectations.
The owner of Olive Garden, LongHorn Steakhouse and Yard House restaurants, posted a 3.1% increase in same-store sales of its legacy brands in the second quarter to 26 November. Analysts expected a 1.4% rise in same-store sales.
#breakingnews Olive Garden owner's shares jump on strong sales, raised outlook - Darden Restaurants posted same-store sales growth that exceeded analyst expectations. https://t.co/PsaU59aRba
— GRussell (@grussell178) December 19, 2017