Published: Fri, December 01, 2017
Markets | By Rosalie Gross

Dow Surges, Breaks Above 24000 Ahead of Senate Tax Vote

Dow Surges, Breaks Above 24000 Ahead of Senate Tax Vote

The Dow is up 197.29 points or 0.8 percent at 24,137.97, the Nasdaq is up 41.99 points or 0.6 percent at 6,866.37 and the S&P 500 is up 16.32 points or 0.6 percent at 2,642.39.

Crude oil finished the day higher as well, a barrel selling at $57.40. Economists had expected income to rise by 0.3%.

The report said real gross domestic product surged up by an upwardly revised 3.3 percent in the third quarter compared to the originally reported 3.0 percent jump.

Meanwhile, MNI Indicators released a report showing a modest slowdown in the pace of growth in Chicago-area business activity in the month of November.

The pullback by the Nasdaq was partly due to profit taking, as traders cashed in on recent strength among tech stocks amid concerns the companies won't see as much of a benefit from proposed tax reform. The index pulled back further off the record closing high set last Friday.

Southwest Airlines (LUV), Union Pacific (UNP), and C.H. Robinson Worldwide (CHRW) turned in some of the sector's best performances.

President Trump speaks about the tax plan in St. Charles Missouri
President Trump speaks about the tax plan in St. Charles Missouri

Semiconductor stocks showed a particularly steep drop, dragging the Philadelphia Semiconductor Index down by 4.4 percent.

Some of the biggest gains were from petroleum-linked stocks, with Dow members ExxonMobil and Chevron both winning more than 1 per cent after OPEC agreed to extend a production agreement to boost oil prices. The index reached its best closing level in nearly ten years.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Thursday.

Industrials .SPLRCI rose 1.53 percent, helped by an nearly 2 percent jump in transportation stocks .djt , which would get a big boost from corporate tax cuts.

Electronic storage stocks are also turning in a strong performance following the sell-off seen in the previous session.

Industrial shares also were strong, with Dow members Caterpillar and United Technologies gaining more than 2 per cent and Honeywell International jumping 1.8 per cent. However, Japan's Nikkei 225 Index bucked the downtrend and advanced by 0.6 percent.

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