Dow Jones Industrial Average Turns Tail After Trump Tax Plan

This Red-Hot Stock Has Room to Run

Apr 26, 2017 at 4:27 PM
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After two straight days of 200-plus-point gains, the Dow Jones Industrial Average (DJIA) spent most of the session modestly higher, boosted by a positive earnings reaction for shares of blue-chip United Technologies and rising oil prices. However, the Dow turned lower in the final hour of trading, after Treasury Secretary Steven Mnuchin and National Economic Director Gary Cohn unveiled President Donald Trump's tax plan. The one-page outline included plans to cut the corporate tax rate to 15% and reduce the top individual tax rate to 35% from 39.6%. The S&P 500 Index (SPX) and the Nasdaq Composite (COMP) also surrendered earlier gains, although the latter hit a record high of 6,040.89 in intraday action.

Continue reading for more on today's market, including:

  • This red-hot casino stock has room to run.
  • Behind U.S. Steel stock's worst day in 26 years.
  • Options traders were likely spooked on news this retailer is seeking strategic alternatives.
  • Plus, AK Steel bounces back; a look at GoPro ahead of earnings; and, the 25 best stocks to own next month.

The Dow Jones Industrial Average (DJIA - 20,975.09) was up 74 points at its session high, before settling down 21 points, or 0.1%. Sixteen of the 30 Dow stocks closed lower, led by Procter & Gamble's 2.5% drop. Verizon Communications paced the 14 gainers with its 1.4% advance.

The S&P 500 Index (SPX - 2,387.45) briefly surpassed its March 1 record closing high, before closing down 1.2 points, or 0.05%. The Nasdaq Composite (COMP - 6,025.23) was also on track to settle at its highest perch to date, but ended the session with a fractional loss.

The CBOE Volatility Index (VIX - 10.85) tacked on 0.09 point, or 0.8%.

closing indexes summary april 26

nyse and nasdaq stats april 26

5 Items on Our Radar Today:

  1. The House Freedom Caucus has endorsed a revised healthcare plan, breathing new life into Republicans' promises to repeal Obamacare. The support comes after an amendment was added that would give states the ability to apply for waivers on some requirements of the Affordable Care Act (ACA) -- a move House Speaker Paul Ryan said would "give states more flexibility while protecting people with pre-existing conditions." (Bloomberg)
  2. Retail stocks surged after Mnuchin indicated plans for a border tax would not be included in Trump's tax plan. Amid protest from several industry leaders, the Treasury secretary said, "We don't think it works in its current form." (CNBC)
  3. AK Steel stock bounced back from Tuesday's post-earnings drubbing, even after getting smacked with a price-target cut.
  4. Skepticism is building on GoPro stock ahead of tomorrow's earnings report.
  5. The 25 best stocks in May, courtesy of Schaeffer's Senior Quantitative Analyst Rocky White.

Corporate Earnings April 26
Unusual Options Activity April 26
Data courtesy of Trade-Alert

Commodities

A third straight weekly decline in domestic crude inventories helped support oil prices, though an unexpected rise in gasoline supplies kept a lid on gains. June-dated crude futures added 6 cents, or 0.1%, to close at $49.62 per barrel. The front-month contract was seen north of $50 in intraday trading.

June-dated gold futures settled down $3, or 0.2%, at $1,264.20 an ounce, as the dollar strengthened. However, gold prices moved higher in electronic trading, as the White House's tax reform plan was unveiled.

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